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

Modifications of section 76 of the Taxes Act

5.—(1) Paragraphs (2) to (6) prescribe modifications of section 76 of the Taxes Act(1) so far as it applies to the life or endowment business carried on by friendly societies.

(2) In subsection (1)(ca) after the words “referable to” there shall be inserted the word “taxable”.

(3) In subsection (1)(d) after the words “referable to” there shall be inserted the words “tax exempt basic life assurance and general annuity business”.

(4) In subsection (1)(e) after the words “referable to” there shall be inserted the word “taxable”.

(5) In subsection (1) at the end there shall be inserted—

““; and in paragraph (d) above “tax exempt basic life assurance and general annuity business” means basic life assurance and general annuity business the profits arising from which fall to be exempted from tax by virtue of section 460(1)(2), and for the purposes of this definition it shall be assumed that the friendly society has made a claim for exemption from tax under that provision”.”

(6) In subsection (7), for paragraph (a) and the word “or” immediately following it there shall be substituted—

“(a) a levy imposed by virtue of arrangements approved by the Friendly Societies Commission under section 141 of the 1986 Act, or”.

(1)

Section 76 was amended by section 87(2) of the Finance Act 1989 (c. 26), section 44(3) of, and paragraph 1 of Schedule 7 to, the Finance Act 1990, section 47 of, and paragraph 1 of Schedule 7 and Part V of Schedule 19 to, the Finance Act 1991 (c. 31), paragraph 7 of Schedule 8 to the Finance Act 1995, and, in relation to accounting periods beginning on or after 1st January 1996, by section 164(1) and (2) of, and paragraph 1 of Schedule 31 to the Finance Act 1996, and (prospectively) by paragraph 1 of Schedule 33 to the Finance Act 1996.

(2)

Section 460(1) was amended by paragraph 5(2) of Schedule 9 to the Finance (No. 2) Act 1992.