Taxes Consolidation Act 1997 Schedule 17 paragraph 2

Capital allowances

Paragraph 2 of Schedule 17 deals with the capital allowances treatment when a trustee savings bank transfers its trade to a successor company.

• The transfer itself does not give rise to any capital allowance or balancing charge.
• The successor company steps into the shoes of the trustee savings bank for capital allowances purposes, as if it had always carried on the trade.
• Everything done to or by the bank is treated as having been done to or by the successor company.
• The successor company cannot claim unused capital allowances that were carried forward by the bank under section 304(4).