Taxation of Chargeable Gains Act 1992 section 215

Disposal of assets on amalgamation of building societies etc.

Section 215 provides that assets transferred between building societies during an amalgamation or transfer of engagements pass on a no gain/no loss basis for corporation tax on chargeable gains purposes.

• When two or more building societies amalgamate, or one transfers its engagements to another, any asset passing between them is treated as transferred at no gain/no loss for corporation tax on chargeable gains
• The transferee society is treated as having acquired the asset for a consideration that produces neither a gain nor a loss for the transferring society
• This treatment applies automatically to both societies involved in the transaction
• The effect is that the original base cost of the asset carries over to the acquiring society, establishing its capital gains tax acquisition cost for any future disposal