SCHEDULE 16GROUP RELIEF

PART 4WITHDRAWAL OF RELIEF

Group relief not withdrawn as a result of certain transfers of business etc. by mutual societies

I111

1

Group relief is not withdrawn under paragraph 8 where—

a

there is a relevant transfer of business or engagement,

b

before the date of the relevant transfer there had been a relieved transaction, and

c

as a result of that transfer, the buyer in the relieved transaction ceases to be a member of the same group as the seller—

i

before the end of the period of 3 years beginning with the effective date of the relieved transaction, or

ii

in pursuance of, or in connection with, arrangements made before the end of that period.

2

In this paragraph, a “"relevant transfer of business or engagement”” means—

a

a transfer of business described in paragraph 10(1)(a) and (b) of Schedule 22 (transactions entered into by building societies);

b

a transfer of business described in paragraph 11(1) of that Schedule (transactions entered into by friendly societies);

c

a transfer of business described in paragraph 12(1) of that Schedule (transactions entered into by co-operative and community benefit societies or credit unions).