PART IIF2PROVISIONS RELATING TO THE SCHEDULE A CHARGE
General
F121C The Schedule A charge and mutual business.
1
The following provisions have effect for the purpose of applying the charge to tax under Schedule A in relation to mutual business.
2
The transactions or relationships involved in mutual business are treated as if they were transactions or relationships between persons between whom no relationship of mutuality existed.
3
Any surplus arising from the business is regarded as a profit (and any deficit as a loss) if it would be so regarded if the business were not mutual.
4
The person—
a
to whom the profit arises for corporation tax purposes, or
b
who is regarded as receiving or entitled to the profit for income tax purposes,
is the person who would satisfy that description if the business were not mutual business.
5
Nothing in this section affects the operation of section 488 (co-operative housing associations).
Pt. 2 heading substituted (with effect as mentioned in s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), s. 38(1), Sch. 5 para. 3 (with Sch. 5 para. 73)