Finance Act 1998

Gains on assets deriving from reorganisation of body carrying on a mutual business etc. U.K.

7 U.K. In Chapter IV of Part VI (special cases), before section 215 there shall be inserted the following section—

“ Re-organisations of mutual businesses U.K.

214C Gains not eligible for taper relief.

(1) A gain shall not be eligible for taper relief if—

(a) it is a gain accruing on a disposal in connection with any relevant re-organisation; or

(b) it is a gain accruing on anything which, in a case in which capital sums are received under or in connection with a relevant re-organisation, falls under section 22 to be treated as a disposal.

(2) In this section “a relevant re-organisation” means—

(a) any scheme of reconstruction or amalgamation applying to a mutual company;

(b) the transfer of the whole of a building society’s business to a company in accordance with section 97 and the other applicable provisions of the M1 Building Societies Act 1986; or

(c) the incorporation of a registered friendly society under the M2 Friendly Societies Act 1992.

(3) In this section—

• 'insurance company’ has the meaning given by section 96(1) of the M3 Insurance Companies Act 1982;

• 'mutual company’ means—

  (a)

  a mutual insurance company; or

  (b)

  a company of another description carrying on a business on a mutual basis;

• 'mutual insurance company’ means an insurance company carrying on a business without having a share capital; and

• 'scheme of reconstruction or amalgamation’ has the same meaning as in section 136.”

Marginal Citations

M1 1986 c. 53.

M2 1992 c. 40.

M3 1982 c. 50.