Transfer of bank undertakings shifts pre-existing tax liabilities to the new bank while capital gains tax remains with the old bank. Tax liabilities and proceedings arising from the transfer of bank undertakings under the 1970 Act follow the statutory succession: liabilities and proceedings subsisting on the appointed day transfer to the corresponding new bank as part of the undertaking, whereas liabilities arising only as a consequence of the transfer (not subsisting at commencement) remain with the existing bank. Capital gain on the transfer is chargeable to the existing bank and is computed by deducting cost (or substituted 1954 market value) and improvements from compensation; there is no balancing charge. Distributions of compensation are treated as dividends and refunds relating to the undertaking belong to the new bank.