Consultation on loss relief changes for building societies

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The government is consulting on draft secondary legislation that applies to transfers of business by building societies.

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The Mutual Societies (Transfers of Business) (Tax) Regulations 2009 (SI 2009/2971) provide for the tax consequences of transfers of business by mutual societies. This includes the use of losses on the transfer of a trade.

This measure updates the regulations to reflect the 2017 changes to the rules for relief for corporation tax losses. The intention is that it will restore the level playing field for post-April 2017 loss relief in equivalent situations, which involve transfers between companies including banks. It will apply retrospectively to transfers occurring from 1 January 2023.

The consultation is open until 28 February 2024. If you have comments on the proposals that could contribute to a response from ICAEW, please contact either Richard Jones or Angela Clegg.

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