Taxes Consolidation Act 1997 section 704

Amalgamation of trustee savings banks

Section 704 provides that where trustee savings banks amalgamate under the Trustee Savings Banks Act 1989, they are treated as the same person for tax purposes, so that transfers of assets between them do not trigger any tax consequences.

• A "trustee savings bank" takes its meaning from the Trustee Savings Banks Act 1989.
• Where assets or liabilities are transferred between trustee savings banks under Part IV of that Act, the banks are treated as the same person for the purposes of the Tax Acts and the Capital Gains Tax Acts.
• This means that an amalgamation of two or more trustee savings banks is effectively ignored for tax purposes.
• No chargeable gain or allowable loss arises on any transfer of assets from one bank to the other as part of the amalgamation.