Section 217D — Taxation of Chargeable Gains Act 1992: Disposal of assets on union, amalgamation or transfer of engagements

Disposal of assets on union, amalgamation or transfer of engagements 217D 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 registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969, aa a society registered as a credit union under the Credit Unions (Northern Ireland) Order 1985 ( S.I. 1985/1205 (N.I. 12)),

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.