Part 8Miscellaneous

Other matters

124Mutual societies: tax consequences of transfers of business etc

1

The Treasury may by regulations make provision for and in connection with—

a

the tax consequences of a transfer of all or part of the business or engagements of a mutual society,

b

the tax consequences of an amalgamation of mutual societies, and

c

the tax consequences of the conversion of a mutual society into a company.

2

“Mutual society” means—

a

a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986,

b

a friendly society within the meaning of the Friendly Societies Act 1992, or

F1c

a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014.

3

Regulations under this section may, in particular, make provision about—

a

relief from tax in respect of losses,

b

capital allowances,

c

the taxation of chargeable gains (including provision conferring relief for specified transfers and amalgamations),

d

the treatment of intangible fixed assets and goodwill,

e

the treatment of loan relationships (and matters treated as loan relationships),

f

the treatment of derivative contracts (and contracts treated as derivative contracts),

g

exemption or other relief from stamp duty, stamp duty reserve tax or stamp duty land tax, and

h

the treatment of arrangements the purpose, or one of the main purposes, of which is to secure a tax advantage.

4

Regulations under this section may, in particular—

a

modify enactments and instruments relating to tax (whenever passed or made),

b

make different provision for different cases or different purposes, and

c

make incidental, consequential or transitional provision (including provision modifying enactments and instruments, whenever passed or made).

5

Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

6

Regulations under this section are to be made by statutory instrument.

7

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

8

In this section—

  • “arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;

  • “company” means a company formed and registered under the Companies Act 2006 (or treated as formed and registered under that Act);

  • “derivative contract” has the same meaning as in Part 7 of CTA 2009 (see section 576 of that Act);

  • “goodwill” and “intangible fixed asset” have the same meaning as in Part 8 of CTA 2009 (see sections 713 and 715 of that Act);

  • “loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);

  • “modify” includes amend, repeal or revoke;

  • “tax” includes stamp duty;

  • “tax advantage” means—

    1. a

      a relief from tax (including a tax credit) or increased relief from tax,

    2. b

      a repayment of tax or increased repayment of tax,

    3. c

      the avoidance, reduction or delay of a charge to tax or an assessment to tax, or

    4. d

      the avoidance of a possible assessment to tax.