Draft regulations: amendment to The Mutual Societies (Transfers of Business) (Tax) Regulations 2009
This technical consultation seeks views on draft regulations to update existing regulations on the use of trade losses for Corporation Tax purposes in the event of transfers of business by building societies.
The Mutual Societies (Transfers of Business) (Tax) Regulations 2009 contain rules for the tax consequences of transfers of business by building societies, including in respect of the use of losses on the transfer of a trade.
In 2017, Corporation Tax loss reform introduced major changes to the use of losses. The amendments proposed in these draft regulations would update the current rules for building societies to reflect changes made as part of Corporation Tax loss reform in connection with transfers of trade and the use of losses. This includes greater flexibility for the offset of post-1 April 2017 trade losses, subject to some restrictions in the first 5 years after the transfer of business.
It is proposed that the amendments apply retrospectively to transfers of business by building societies occurring from 1 January 2023.
Before submitting your response, you can read these publications:
- (draft) The Mutual Societies (Transfers of Business) (Tax) (Amendment) Regulations 2024
- (draft) tax information and impact note