The Co-operative Party has received a clean bill of health in its tax affairs, becoming the first political party in the UK to be awarded the Fair Tax mark for tax transparency.
It has for some time been agreed with HM Revenue & Customs that the
Party is taxed in accordance with ‘the mutuality principle’. What this, in effect,
means is that the Party is seen as the representative of its members in
undertaking activity on their behalf. The tax consequence is that the income
received from members, including for supplying services to them, is not
considered taxable. Nor is any tax relief given on any spending undertaken
to supply this activity. The result is that much of the activity of the Party is
outside the scope of corporation tax.
So it’s taxed as with an LLP, it’s tax transparent and, err, doesn’t pay tax?
Corporation tax 9 (75)
err, yes, that’s 75.00 GBP. Presumably the tax on the 375.00 GBP of interest received.
Ritchie must be so proud of landing this client.