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Where Taxpayers and Advisers Meet

members club becoming SCIO and CGT

simplytax
Posts: 85
Joined: Wed Aug 06, 2008 3:34 pm

members club becoming SCIO and CGT

Postby simplytax » Thu May 03, 2018 3:10 pm

If a members club owning its own building becomes a Scottish Charitable Incorporated Organisation ( SCIO) or CIO in England is there a taxable gain on the property transferred?

Members club is an unincorporated association but is subject to corporation tax as it is within the definition of a "company" at s288 TCGA. The beneficial ownership of the property under the club constitution belongs the members equally. There is a no gain no loss treatment for gifts to a charity at s257 TCGA 1992 but does that apply here if not an individual and the club is subject to corporation tax on any gains?

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: members club becoming SCIO and CGT

Postby pawncob » Fri May 04, 2018 10:49 am

The disposal is probably taxable, but as it's a mutual, the gain should be apportioned between all the members, so a taxable gain probably wouldn't arise. It may even be possible to claim relief for the gift to a charity!!
(I couldn't find anything helpful on HMRC sites, so this is pretty much off the wall)
With a pinch of salt take what I say, but don't exceed your RDA


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