Industrial and provident societies and co-operatives

217DDisposal 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.