Caroline Nelson

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  • in reply to: Investment club broker #32301
    Caroline Nelson
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      I have been monitoring the comments made on finding a broker for investment clubs, as I also belong to one. One of my fellow members commented after the email posted by John Calvert on the rejection by Interactive Brokers, that maybe investment clubs should describe themselves as a partnership rather than a club. A partnership is a legal entity.

      Under HMRC guidance, Section 1 (1) Partnership Act 1890, a partnership is the ‘relationship which subsists between persons carrying on a business in common with a view to profit’
      In HMRC Internal Manual (under the Wine Section!) PM120100, updated 21 May 2024 ‘The expression with a view to profit distinguishes partnerships from clubs and societies, which do not have a profit motive and also from arrangements to share expenditure’

      In view of the above, are we actually a partnership rather than a club?

      I have also established that a partnership can have a UTR.

      As a club, we are going to ask Interactive Brokers if we formed a partnership, would this meet their legal personality requirement?

      Also it might be interesting to find out Interactive Investors and AJ Bell’s attitude to Partnerships.

      Comments please

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