VTUPB5100 - Trade unions and professional bodies: Item 1(c) branch of knowledge / professional expertise: General

鈥淚tem 1(c)鈥� of 鈥淕roup 9鈥� contains two different bases upon which an organisation may qualify for exemption.

  • The body鈥檚 鈥減rimary purpose鈥� must either be
  • 鈥渁dvancing a particular branch of knowledge鈥�, or
  • 鈥渇ostering鈥� its 鈥渕embers鈥� professional expertise鈥�.

The 鈥減rimary purpose鈥� criterion is common to both of these heads of exemption, as is a requirement that the knowledge or expertise should be 鈥渃onnected with the past or present professions or employments of the members鈥�.

  • In addition, 鈥淣ote (4)鈥� to the group stipulates that the association must restrict its membership 鈥渨holly or mainly鈥� to individuals whose past or present professions or employments are 鈥渄irectly connected with the purposes of the association鈥�.

However, following the ECJ decision in the Institute of the Motor Industry (referred to in VTUPB1200) HMRC takes the view that membership need not be restricted to individuals.

VTUPB5200 and VTUPB5300 set out the criteria particular to each of the heads of exemption; VTUPB5400, VTUPB5500 and VTUPB5600, the criteria applicable to both.