Taxes Consolidation Act 1997 Schedule 16, paragraph 1

Capital allowances

Paragraph 1 of Schedule 16 provides that, for capital allowances purposes, the conversion of a building society into a successor company does not constitute a cessation of trade or the commencement of a new trade.

• The trade of the building society is not treated as permanently discontinued, and the trade of the successor company is not treated as a new trade.
• The successor company receives all capital allowances and charges that would have been made to or on the society had it continued to carry on the trade.
• Allowances and charges are computed as if the successor company had been carrying on the trade since the society first began to do so, and as if everything done to or by the society had been done to or by the successor company.
• The conversion itself does not give rise to any balancing allowance or balancing charge.