[F1(1)In this Chapter “life or endowment business” means, subject to subsections (1A) and (1B) below,—
(a)any business [F2of effecting or carrying out contracts of insurance which fall within paragraphs I, II or III of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;]
(b)pension business;
(c)any other life assurance business;
(d)any business within [F3paragraph IV of Part II] of that Schedule, if—
(i)the contract is one made before 1st September 1996; or
(ii)the contract is one made on or after 1st September 1996 and the effecting and carrying out of the contract also constitutes business within [F4paragraphs I, II or III of Part II] of that Schedule.
(1A)Life or endowment business does not include the issue, in respect of a contract made before 1st September 1996, of a policy affording provision for sickness or other infirmity (whether bodily or mental), unless—
(a)the policy also affords assurance for a gross sum independent of sickness or other infirmity;
(b)not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and
(c)there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.
(1B)Life or endowment business does not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.]
(2)In this Chapter—
[F5 “friendly society”, without qualification, means (except in section 459) an incorporated friendly society or a registered friendly society;
“incorporated friendly society” means a society incorporated under the Friendly Societies Act 1992;]
[F6“insurance company” shall be construed in accordance with section 431;]
“life assurance business” means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life, not being industrial assurance business;
[F7“ [F8long-term] business” shall be construed in accordance with section 431;]
[F9“new society” means—
a registered friendly society which was registered after 3rd May 1966 or which was registered in the period of three months ending on that date but which at no time earlier than that date carried on any life or endowment business, or
an incorporated friendly society other than one which, before its incorporation, was a registered friendly society not within paragraph (a) above;]
“pension business” shall be construed in accordance with section 431;
“policy”, in relation to life or endowment business, includes an instrument evidencing a contract to pay an annuity upon human life;
[F10 “registered branch” means the same as in the Friendly Societies Act 1992 (and includes any branch that by virtue of section 96(3) of that Act is to be treated as a registered branch);
“registered friendly society” means the same as in the Friendly Societies Act 1992 (and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society);]
F11 . . .
“tax exempt life or endowment business” has, subject to subsections (7) to [F12(10A)] of section 460, the meaning given by subsection (2)(d) of that section, that is to say, it means (subject to those subsections) life or endowment business other than business profits arising from which are excluded from subsection (1) of that section by subsection (2)(b) or (c) of that section (read, where appropriate, with subsection (6) of that section);
and references in sections 460 to 465 and this subsection to a friendly society [F13include, in the case of a registered friendly society, references to any branch of that society].
(3)M1It is hereby declared that for the purposes of this Chapter (except where provision to the contrary is made) a [F14friendly society] formed on the amalgamation of two or more friendly societies is to be treated as different from the amalgamated societies.
(4)A registered friendly society formed on the amalgamation of two or more friendly societies shall, for the purposes of this Chapter, be treated as registered not later than 3rd May 1966 if at the time of the amalgamation—
(a)all the friendly societies amalgamated were registered friendly societies eligible for the exemption conferred by section 460(1); and
(b)at least one of them was not a new society;
or, if the amalgamation took place before 19th March 1985, the society was treated as registered not later than 3rd May 1966 by virtue of the proviso to section 337(4) of the 1970 Act.
[F15(5)An incorporated friendly society formed on the amalgamation of two or more friendly societies shall, for the purposes of this Chapter, be treated as a society which, before its incorporation, was a registered friendly society registered not later than 3rd May 1966 if at the time of the amalgamation—
(a)all the friendly societies amalgamated were registered friendly societies eligible for the exemption conferred by section 460(1); and
(b)at least one of them was not a new society.]
Textual Amendments
F1S. 466(1)-(1B) substituted for s. 466(1) (29.4.1996) by Finance Act 1996 (c. 8), s. 171(1)
F2Words in s. 466(1)(a) substituted (1.12.2001 with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 37(a)
F3Words in s. 466(1)(d) substituted (1.12.2001 with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 37(b)(i)
F4Words in s. 466(1)(d)(ii) substituted (1.12.2001 with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 37(b)(ii)
F5Definitions in s. 466(2) inserted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(4); S.I. 1993/236, art. 2
F6S. 466(2): definition of "insurance company" inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 171(2)(a)
F7S. 466(2): definition of "long term business" inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 171(2)(b)
F8S. 466(2): word in definition of "long term business" substituted (1.12.2001 with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2000/3629), art. 52(2)(j)
F9Definition in s. 466(2) substituted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(5); S.I. 1993/236, art. 2
F10Definitions in s. 466(2) inserted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(6); S.I. 1993/236, art. 2
F11Definition of “registrar” in s. 466(2) repealed (1.1.1994) by Friendly Societies Act 1992 (c. 40), s. 120(2), Sch. 22 Pt. I; S.I. 1993/2213, Sch.6 APPENDIX
F12S. 466(2): word in definition of "tax exempt life or endowment business" substituted (retrospectively) by Finance Act 2007 (c. 11), Sch. 12 paras. 3, 6(1)
F13Words in s. 466(2) substituted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(7); S.I. 1993/236, art. 2
F14Words in s. 466(3) substituted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(8; S.I. 1993/236, art. 2)
F15S. 466(5) added (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 para. 14(9); S.I. 1993/236, art. 2
Modifications etc. (not altering text)
C1S. 466(2) modified (6.4.1999) by The Individual Savings Account (Insurance Companies) Regulations 1998 (S.I. 1998/1871), regs. 1, 5, 17
C2S. 466(2) modified (6.4.2005) by The Child Trust Funds (Insurance Companies) Regulations 2004 (S.I. 2004/2680), regs. 1, 4, 15; S.I. 2004/3369, art. 2(1)
Marginal Citations
M1Source—1970 s.337(4); 1985 s.41(7)(e)