Taxation of Chargeable Gains Act 1992

[F1 Re-organisations of mutual businesses U.K.

Textual Amendments

F1 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

214C Gains not eligible for taper relief. U.K.

(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;

• “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.]