CG41613 - Incorporation of previously registered societies
TCGA92/S217A - TCGA92/S217C deal with the situation where a previously registered society incorporates under the provisions of the Friendly Societies Act 1992. The broad effects of these provisions as far as the society is concerned are
- any assets which pass from the registered society to the newly incorporated society do so on a no gain/no loss basis
- where the incorporated society subsequently disposes of any asset acquired in this way, TCGA92/S41 (restriction of allowable loss by reference to capital allowances) will apply as if any capital allowances made to the registered society had been made to the incorporated society.
The incorporation of a registered friendly society does not involve any disposal or acquisition of membership interests (TCGA92/S217B). Rights which a member holds after incorporation are treated for capital gains purposes as the same asset as the rights held before incorporation.