Business reorganisation asset transfers by co-operative banks are not treated as transfers, with original cost base preserved.

Transfer of a capital asset in a business reorganisation by a predecessor co-operative bank to a successor co-operative bank, and under the later provision also to a converted banking company, is treated as a transaction not regarded as a transfer for capital gains purposes. The transferee takes the asset at the same cost at which the previous owner acquired it, preserving the original cost base for tax purposes.

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