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

Modifications of section 436 of the Taxes Act

19.—(1) Paragraph (2) prescribes a modification of section 436 of the Taxes Act(1) so far as it applies to the life or endowment business carried on by non-directive societies other than societies—

(a) which carry on any pension business which is linked business, and

(b) to which section 432E of the Taxes Act(2) does not apply.

(2) After subsection (3)(e) there shall be inserted the following paragraph—

“(f) the opening liabilities and the closing liabilities of the society shall be ascertained in accordance with paragraph (b) of the definition of “liabilities” in subsection (2) of section 431, and the definition of “closing liabilities” in that subsection shall not apply.”

(1)

Section 436 was amended by paragraph 6 of Schedule 8 and Part IV of Schedule 17 to the Finance Act 1989, section 43(2) of, and paragraph 5 of Schedule 6 to, the Finance Act 1990, paragraph 4(1) to (3) of Schedule 7 and Part V of Schedule 19 to the Finance Act 1991, and paragraph 16(4) of Schedule 8 and Part VIII(5) of Schedule 29 to the Finance Act 1995, and by paragraph 7(1)(a) of Schedule 31 and Part V(23) of Schedule 41 to the Finance Act 1996 in relation to accounting periods beginning on or after 1st January 1996.

(2)

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.