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Mutual societies and capital gains

Is this mutual society liable to CGT

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I have recently taken on a non-audit British Legion Club.


During the last accounting period they sold one of their houses that they owned and let out.


I am just after confirmation that my thinking is correct on this. Although this a mutual society and not generally taxable, the gain on the sale of the property should fall within the taxable bracket as it is not a trading asset (therefore utilised by members). The income from rent has always been taxable.


They previously owned 2 other houses and looking back through accounts on the Friendly Society website it appears they paid CGT on those. Ironically, I used to work for the previous Accountants and some of the writing on the annual returns is actually mine from 20 years ago!

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