What is an Investment Club

What is an Investment Club?

An organised group of friends, family or work colleagues who meet together on a regular basis and pool their spare cash into a separate entity, namely, an Investment Club and invest the club's funds in the stock market and other investment opportunities. An Investment Club is a partnership governed by the Companies Act 1985 and the Partnership Act 1890.

In the UK, Investment Clubs are best set up with rules and a constitution to ensure smooth running and for the protection of its members. We provide rules and constitution templates for you to adapt later in this module.

While Investment Clubs are not charged by The Inland Revenue to Corporation Tax, the individual members of the club are charged to tax on their proportionate share of any income or gains. They are also entitled to relief in respect of any share of capital losses. The club should therefore elect a Chairperson, Secretary and Treasurer responsible for the administration and record keeping and informing the local Tax Office of the existence of the club. This should be done at the inaugural meeting.

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Investment Clubs

From the Investment Vehicles Blog

Investment Clubs

Investment Clubs are growing rapidly in number in the UK

This module guides you through the stages needed to set up and maintain a successful Investment Club

The PDF document takes you, step by step, through the whole process and covers:

Formulating your investment objectives.

Formulating the club’s Rules and Constitution.

Recruiting members.

The right mix of members.

Member duties.

The club’s legal formation and Tax status.

Electing Officers and their duties.

Conducting the meetings.

Keeping accounts.

How funds are received and used.

Researching investment opportunities.

Education.

Finding and working with your Stockbroker.

Banking and Auditing.

Risk and reward.

Along with many more sections designed to make the process as simple as possible with examples of all administrative forms and management and accounting systems.

The module does all the organisational work for you leaving you free to concentrate on driving the club forward to achieve the clubs financial goals.

Go to The Investment Vehicles Main Blog for more private investor information.

The Investment Club Training Module is currently under construction, please subscribe to receive the module in bite-sized stages.

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