The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

Taxation in respect of other business

33.—(1) Amend section 461 (taxation in respect of other business)(1) as follows.

(2) In subsection (2)—

(a) in paragraphs (a) and (b) for “registrar” substitute “Board”;

(b) for “(8)” substitute “(7)”.

(3) In subsection (4)(a)—

(a) omit “by virtue of section 84 of the Friendly Societies Act 1974 or”;

(b) for “either of those Acts” substitute “that Act”.

(4) In subsection (6)—

(a) in paragraphs (a) and (b) for “the Commission” substitute “the Board”;

(b) for the words immediately after paragraph (b) substitute “the Board may give a direction to the society under subsection (7) below.”.

(5) For subsections (7) to (9) substitute—

“(7) A direction under this subsection is that (and has the effect that) the society to which it is given is to be treated for the purposes of this Act as a society registered after 31st May 1973 with respect to business carried on after the date of the direction.

(8) A society to which a direction is given may, within 30 days of the date on which it is given, appeal against the direction to the Special Commissioners on the ground that—

(a) it has not begun to carry on business as mentioned in subsection (6)(a) above; or

(b) the direction is not necessary for the protection of the revenue.

(9) If a registered friendly society in respect of which a direction is in force under subsection (7) above becomes an incorporated friendly society, the direction shall continue to have effect, so that the incorporated friendly society shall be treated for the purposes of this Act as a society registered after 31st May 1973.”.

(6) After subsection (10) add—

“(11) For the purposes of this section and section 461C—

(a) any group of persons which was approved for the purposes of this section (as mentioned in subsection (2)(a) above) immediately before 1st December 2001 shall be treated as having been approved for the purposes of this section by the Board on that date;

(b) any greater amount which was authorised for the purposes of this section (as mentioned in subsection (2)(b) above) immediately before 1st December 2001 shall be treated as having been authorised for the purposes of this section by the Board on that date; and

(c) where a direction that subsection (2) above applies to a society was in force immediately before 1st December 2001, a direction in relation to that society shall be treated as having been made under subsection (7) above by the Board on that date.”.

(1)

Section 461 was amended by paragraph 10 of Schedule 21, and Part 1 of Schedule 22, to the Friendly Societies Act 1992 and paragraph 6 of Schedule 9 to the Finance (No. 2) Act 1992.