Corporation Tax Act 2009 section 810

Mutual trade or business

Section 810 excludes intangible fixed assets held for mutual trade or business purposes from the intangible fixed assets regime in Part 8, with one exception for royalties.

• Part 8 of the Corporation Tax Act 2009 (the intangible fixed assets regime) generally does not apply to intangible fixed assets held for the purposes of a mutual trade or business.
• The exclusion covers any intangible fixed asset to the extent that it is held for mutual trade or business purposes — so a partial exclusion can apply where an asset serves both mutual and non-mutual purposes.
• The one exception to this exclusion is royalties — the Part 8 rules relating to royalties still apply even where the intangible fixed asset is held for mutual trade or business purposes.
• A mutual trade or business is one conducted by a body (such as a mutual insurer or a members' club) for the benefit of its members rather than for profit, where any surplus is returned to members rather than treated as taxable profit.