Part VI Companies, oil, insurance etc.
Chapter IV Miscellaneous cases
F1Re-organisations of mutual businesses
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 Building Societies Act 1986; or
c
the incorporation of a registered friendly society under the Friendly Societies Act 1992.
3
In this section—
“insurance company” has the meaning given by section 96(1) of the 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;
- a
“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.
S. 214C and cross-heading inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), Sch. 21 para. 7