The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997

Modifications of section 432E of the Taxes Act

14.—(1) Paragraphs (2) to (4) prescribe modifications of section 432E of the Taxes Act(1) so far as it applies to the life or endowment business carried on by friendly societies.

(2) In subsections (1) and (5), after the words “subsection (2)”(wherever occurring) there shall be inserted the words “or, as the case may be, subsection (2A)”.

(3) In subsection (2), in paragraph (a), before the words “in a case” there shall be inserted the words “subject to subsection (2A) below,”.

(4) After subsection (2) there shall be inserted the following subsection—

“(2A) For the purposes of subsection (1) above, in a case where an amount is taken into account in accordance with section 83(2A) of the Finance Act 1989(2), there shall be determined the aggregate of the amount determined in accordance with subsection (2)(a) above and

where—

CAS

and AS have the meanings given by subsection (2) above; and

RA

is the amount taken into account in accordance with section 83(2A) of the Finance Act 1989.”

(1)

Section 432E was inserted by paragraph 4 of Schedule 6 to the Finance Act 1990 and amended by paragraphs 12(1)(a), 16(3) and 17(2) of Schedule 8 to the Finance Act 1995.

(2)

1989 c. 26; section 83 was substituted by paragraph 16(1) of Schedule 8 to the Finance Act 1995 in relation to accounting periods beginning on or after 1st January 1995 and amended by paragraph 4 of Schedule 31 to the Finance Act 1996 in relation to accounting periods beginning on or after 1st January 1996. Subsection (2A) of section 83 is inserted by regulation 33(2) of these Regulations.