Investment Clubs

Guide: Getting started



Whilst there are many other advantages to investing through an investment club such as shared knowledge and costs - there are no tax benefits given to members of an investment club.

Members are taxed individually and everyone in the club is liable to pay tax on their share of the club's profits, both income tax on dividends and capital gains tax on any increase in price of shares sold. There is a simplified scheme that clubs can choose to stick to, particularly in the early days. This requires that clubs invest within certain limits. Details of these can be found in the Proshare manual, and investment clubs can discuss tax issues on Proshare's help line.

Bank accounts

Individual clubs should ascertain their individual needs and search for a bank account to suit these needs.

Many investment clubs have found the 'Clubs and Societies' or 'Treasurers' type accounts which are offered by many high street banks useful as more than one signatory is required on the account, which is important for security purposes.

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