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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Industrial and Provident Societies: definition

ICTA88/S486

A registered industrial and provident society is one which is registered or deemed to be registered under the Industrial and Provident Society Acts. The definition of a registered industrial and provident society is extended for the purposes of Section 486(8), which deals with the union or amalgamation of societies, see below, to include certain cooperative associations. These are associations established and resident in the United Kingdom and which are approved by the appropriate Government Department as having the primary object of assisting their members in the carrying on of agriculture, horticulture or fishing.

ICTA88/S486 (8)

Union or amalgamation of industrial and provident societies

If an asset is disposed of by one registered industrial and provident society to another in the course of or as part of a union, amalgamation or transfer of engagements, it will pass on a no gain/no loss basis for the purposes of Corporation Tax on chargeable gains. This treatment applies to both societies and, therefore, establishes the capital gains acquisition cost for any subsequent disposal of the asset by the transferee. See

  • CG54900+ as regards gilt-edged securities
  • CG15500+ as regards assets acquired by the transferor society before 6 April 1965.