462 Conditions for tax exempt business.U.K.
[F1(1)Subject to [F2subsection (2)] below, section 460 does not afford any exemption from corporation tax in relation to so much of the profits arising to a friendly society or insurance company from any business as is attributable to a policy which—
(a)is not a qualifying policy (by virtue of sub-paragraph (2) of paragraph 6 of Schedule 15) and is not an excluded policy, and
(b)would not be a qualifying policy (by virtue of that sub-paragraph) if all excluded policies were left out of account.
(1A)For the purposes of subsection (1) above a policy is an excluded policy if—
(a)it is a policy held otherwise than with the friendly society or insurance company, or
(b)the person who has the contract effecting the policy acquired the rights under it on an assignment (or, in Scotland, assignation) otherwise than for money or money's worth.]
(2)[F3M1Section 460(2)(a) or (aa)] and subsection (1) above shall not withdraw exemption [F4in relation to profits arising from any part of a] business relating to contracts made not later than 3rd May 1966.
F5(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 462(1)(1A) substituted for s. 462(1) (retrospective to 1.1.2007) by Finance Act 2007 (c. 11), s. 45(2)(6)
F2Words in s. 462(1) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 18 para. 5(2)
F3Words in s. 462(2)(a) substituted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 par. 8(2) S.I. 1993/236, art.2
F4Words in s. 462(2) substituted (retrospective to 1.1.2007) by Finance Act 2007 (c. 11), s. 45(3)(6)
F5S. 462(3)(4) omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 18 para. 5(1)(a)
Marginal Citations
M1Source—1970 s.336; 1985 Sch.10 Part II