.png)
.png)
Capital gains tax implications of share investment club membership
KEY POINTS
- Share investment clubs are groups of individuals; they do not pay corporation tax.
- The capital gains are calculated as normal.
- New members will buy units at the current value.
- Leavers must take account of gains in redeemed units.
- A worked example of the life of an investment club.
Share investment clubs consist typically of a few friends and acquaintances who meet regularly to invest in exchange traded shares. A club will have a constitution and rules that prescribe the election of officers the number required for a quorum etc.
Each member may pay a regular “subscription” into the club – not necessarily the same for all members – in return for “units” issued by the club.
Members may also buy additional units or redeem...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
