Corporation Tax Act 2009 section 260

Mutual business

Section 260 ensures that the concept of mutuality does not apply to property businesses, so that all receipts and expenses must be included when calculating property business profits.

• The rules relating to mutual business do not apply to property businesses under this Part of the Act.
• All receipts and expenses must be brought into account when calculating property business profits, even where a relationship of mutuality exists between the company and another person.
• Mutuality is a long-established legal concept based on the principle that one cannot make a profit by dealing with oneself, and can arise where contributors to a common fund share in its surpluses.
• The rule does not affect the separate provisions for cooperative housing associations in Chapter 7 of Part 13 of CTA 2010.