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.
I am hard at work completing the Investment Club Module, please check back regularly for the full Module
