Taxes Consolidation Act 1997 section 703

Change of status of society

Section 703 ensures that where a building society converts from a mutual society into a limited company under the Building Societies Act 1989, no adverse tax consequences arise from the conversion.

• A building society may convert into a successor company under Part XI of the Building Societies Act 1989, following member approval and Central Bank confirmation.
• Where such a conversion takes place, the detailed rules in Schedule 16 TCA 1997 automatically apply to govern the tax treatment of the transition.
• Schedule 16 treats the successor company and the former building society as the same entity for tax purposes, so no balancing adjustments or deemed disposals arise on conversion.
• Assets acquired by the successor company are treated as having been acquired at the time and cost at which they were originally acquired by the building society.