HOW TO SET UP YOUR OWN CLUB

Who offers these accounts?

Brokers include The Share Centre, Hargreaves Lansdown and TD Direct.

What are the costs?

Most providers levy an annual fee as a percentage of the portfolio amount, or a set fee per month. At The Share Centre, for example, clubs pay as little as a monthly £1.50 administration fee and £7.50 when trading shares.

Are there tax implications?

Each member must account to Revenue & Customs for tax due on profits or income. The treasurer should create a certificate of profits and losses at the end of each year. It is advisable to inform the Revenue when you set up a club.

Can clubs invest in Isas?

No. An Isa is an individual savings account only open to one person.

How do you join or leave?

Most clubs break down their portfolio into units in the same way as an investment fund. The club can either sell shares equivalent to the value of a departing member’s stake or the other members can buy them out.

Are there constitutional requirements?

New groups should agree how often to meet, how much will be invested and how decisions to buy and sell will be made. They must also decide when profits will be taken and what they will be used for, and how members will leave or join.