Finance Act, 1992

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Building societies (taxation of certain transactions).

43.—(1) In this section—

“building society” means a building society incorporated, or deemed by section 124 (2) of the Building Societies Act, 1989 , to be incorporated, under that Act, and references to “society” shall be construed accordingly;

“security” means an asset which is not a chargeable asset for the purposes of capital gains tax by virtue of section 19 of the Capital Gains Tax Act, 1975 .

(2) Where on or after the 29th day of January, 1992, a society sells or transfers a security and, apart from this subsection, all of the profit or gain or loss on the sale or transfer would be taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade, then so much of the amount of the profit or gain or loss on the sale or transfer shall not be so taken into account as does not exceed—

(a) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, an amount equal to 75 per cent. of the profit or gain or loss,

(b) as respects sales or transfers in the year 1993, an amount equal to 50 per cent. of the profit or gain or loss, and

(c) as respects sales or transfers in the year 1994, an amount equal to 25 per cent. of the profit or gain or loss.

(3) (a) Section 29 (as amended by section 27 of the Finance Act, 1991 ), other than paragraph (b) of subsection (2A), of the Finance Act, 1984 , shall apply to the sale or transfer on or after the 29th day of January, 1992, of a security by a society notwithstanding that all or a part of the profit or gain or loss on the sale or transfer of the security is taken into account in computing, for the purposes of assessment to corporation tax, the trading income of the society's trade:

Provided that the amount of interest which, apart from this proviso, is chargeable on the sale or transfer of a security under the said section 29 by virtue of this subsection shall be reduced by—

(i) as respects sales or transfers in the period beginning on the 29th day of January, 1992, and ending on the 31st day of December, 1992, 25 per cent. of the said amount,

(ii) as respects sales or transfers in the year 1993, 50 per cent. of the said amount, and

(iii) as respects sales or transfers in the year 1994, 75 per cent. of the said amount.

(b) This subsection shall not apply to a sale or transfer of a security after the 31st day of December, 1994.

(4) Subsection (9) (as amended by section 34 of the Finance Act, 1986 ) of section 31 of the Corporation Tax Act, 1976 , is hereby repealed and shall be deemed not to have applied or had effect for accounting periods ending on or after the 1st day of April, 1989.