»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýappre are two ways in which building societies can merge under the Building Societies Act 1986:

• in an amalgamation, two or more societies combine to establish a single new society which succeeds to their trades,
• in a transfer of engagements, one society transfers all or part of its business to another society.

»Ê¹ÚÌåÓýapp Mutual Societies (Transfers of Business) (Tax) Regulations 2009 (SI2009/2971), as amended by SI2024/555, deal with the treatment of trading losses for certain transfers of business by building societies, including mergers.

Investments which are loan relationships of:

• both societies on an amalgamation, and
• the transferor society on a transfer of engagements,

will be taken into account on an accruals basis at the date of cessation. »Ê¹ÚÌåÓýapp transferee society will acquire those assets at the same value.

Any transfers of chargeable assets from one society to another on a merger are deemed to take place on a no gain no loss basis. This means that the consideration for the disposal is deemed to be an amount which gives rise to neither a gain nor a loss in the hands of the society making the disposal (see CG41000).

Unrelieved capital losses cannot be transferred to the successor society.