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For a body to be engaged in mutual trading there must be:

• complete identity, as a class, between the contributors to the mutual surplus and the participators therein (see BIM24105), and
• arrangements which ensure that the surplus ultimately finds its way back to the contributors and no arrangements for it to go to anybody else (see BIM24110), and
• a reasonable relationship between the amount a person contributes to the surplus and the amount distributed to them on winding up (see BIM24115), and
• arrangements which place control in the hands of the contributors to the common fund (see BIM24120).

A body will not pass the tests for mutual trading if its legal framework does notinclude these rules.

If a body is to be seen as mutual, the contributors to its surplus must be entitled as a class to participate in the surplus. »Ê¹ÚÌåÓýapp surplus must be divided according to the amount of business they do with the body. However this does not prevent participators in year 50 from being paid a surplus on the basis of amounts contributed in year 1.