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HMRC internal manual

Company Taxation Manual

Particular bodies: loan and money societies: general

Few loan and money societies remain in existence, and no new societies can be incorporated.  Loan and money societies are either:

  • ‘specially authorised’, meaning they are registered under section 7 (1)(f) of the Friendly Societies Act 1974, for a purpose authorised by the Treasury, or
  • incorporated under the Companies Act 2006 (or its predecessors).

These societies are within the charge to CT.

Accounting periods ending on or before 31 March 2001

For accounting periods ended before 31 March 2001 loan and money societies were able to adopt ESCC2 (now obsolete).  A society that adopted the concessional procedure was charged to CT in a similar way to building societies (see CTM49100 onwards). This treatment was withdrawn following the abolition of advance corporation tax from 6 April 1999.

Accounting periods ending on or after 1 April 2001

ESCC2 was withdrawn for accounting periods ended on or after 1 April 2001.  Since that date, loan and money societies have been subject to the same corporation tax rules as other companies.

Head Office responsibility for loan and money societies lies with CTIS (Technical).