Corporation Tax Act 2010

250 U.K. After section 217C insert—

“Industrial and provident societies and co-operatives U.K.

217D Disposal of assets on union, amalgamation or transfer of engagements

(1) Subsection (2) applies if—

(a) there is a union or amalgamation of two or more relevant bodies or a transfer of engagements from one relevant body to another, and

(b) in the course of, or as part of, that union, amalgamation or transfer there is a disposal of an asset by one relevant body to another.

(2) Both bodies are treated for the purposes of corporation tax on chargeable gains as if the asset were acquired from the body making the disposal for a consideration which is of the amount needed to secure that on the disposal neither a gain nor a loss accrues to the body making the disposal.

(3) In this section “relevant body” means—

(a) a society registered or treated as registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969,

(b) an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Co-Operative Society, or

(c) a UK agricultural or fishing co-operative, as defined in section 1058 of CTA 2010.”