CTM40580 - Particular bodies: industrial and provident societies: assets transferred to another society

ICTA88/S486 (8)

Section 486 (8) ensures that no chargeable gain will arise on a disposal of an asset by one registered industrial and provident society to another in the course of, or as part of, an amalgamation of societies or a transfer of engagements from one society to another. In computing chargeable gains, and for this purpose only, the consideration for the asset is treated as an amount giving rise to neither gain nor loss.

For other purposes (for example, capital allowances) use the actual consideration paid. Where however the society is carrying on a trade and the conditions of ICTA88/S343 are met then capital allowances transfer at written down value and the trading losses of the old society may also transfer to the new society (see CTM06000 onwards).