The Mutual Societies (Transfers of Business) (Tax) (Amendment) Regulations 2024

Amendment of the Mutual Societies (Transfers of Business) (Tax) Regulations 2009

2.—(1) The Mutual Societies (Transfers of Business) (Tax) Regulations 2009 are amended as follows.

(2) In regulation 4—

(a) in paragraph (2), for “(3) to (18)” substitute “(19) and (20)”;

(b) omit paragraphs (3) to (18);

(c) at the end insert—

“(19) If Chapter 2E of Part 14 of the Corporation Tax Act 2010 (post-1 April 2017 trade losses: cases involving the transfer of a trade)(1) would not otherwise apply to the relevant transfer, that Chapter has effect as if—

(a) section 676EA were omitted;

(b) in each place, references to “the transferred company” were to “the transferor” in relation to a relevant transfer;

(c) in sections 676EB(1)(a) and 676EC(1)(a), for “8 years beginning 3 years before the change in ownership” there were substituted “5 years beginning with the date of the relevant transfer”;

(d) in sections 676EB(1)(b) and 676EC(1)(b), after “applies” there were inserted “, or is treated as applying”;

(e) in each place, references to “the change in ownership” were to “the relevant transfer”;

(f) in section 676EC—

(i) in paragraph (1)(a), “or a co-transferred company” were omitted;

(ii) in paragraph (2)(b)(i), “or the co-transferred company” were omitted;

(iii) in paragraph (6), “or co-transferred company” were omitted;

(g) in section 676ED—

(i) in paragraphs (1) and (4)(a), “or a co-transferred company” were omitted in each place;

(ii) in paragraphs (2) and (5), “or (as the case maybe) the co-transferred company)” were omitted in each place.

(20) If Chapter 1 of Part 22 of the Corporation Tax Act 2010 (transfers of a trade without a change of ownership)(2) would not otherwise apply to the relevant transfer, that Chapter applies to the relevant transfer as a transfer of a trade (within section 940B of that Act) and has effect as if sections 940A, 940C to 943 and 953 were omitted.”

(1)

2010 c. 4. Chapter 2E was inserted by paragraph 79 of Schedule 4 to the Finance (No. 2) Act 2017 (c. 32).

(2)

Chapter 1 was amended by paragraph 3 of Schedule 5 and paragraphs 24 and 25 of Schedule 6 to the Finance Act 2011 (c. 11), section 24(7) of the Finance Act 2012 (c. 14) and paragraphs 63 to 66 and 68 of Schedule 4 to the Finance (No. 2) Act 2017 (c. 32).