PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
CHAPTER II FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS
Registered friendly societies
F1461C Taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society.
(1)
Subject to subsection (2) below, subsections (3) F2and (4) below apply where a qualifying society—
(a)
begins to carry on business other than life or endowment business, or
(b)
in the opinion of the F3Board, begins to carry on business other than life or endowment business on an enlarged scale or of a new character.
(2)
Subsections (3) F4and (4) below do not apply if—
(a)
the society’s business is limited to the provision, in accordance with the rules of the society, of benefits for or in respect of employees of a particular employer or such other group of persons as is for the time being approved for the purposes of section 461 or 461A by the F5Board, or
(b)
the society’s rules limit the aggregate amount which may be paid by a member by way of contributions and deposits to not more than £1 per month or such greater amount as is authorised for the purposes of section 461.
(3)
F8(4)
A direction under this subsection is that (and has the effect that) the society to which it is given shall cease to be a qualifying society as from the date of the direction.
(5)
A society to which a direction is given may, within 30 days of the date on which it is given, appeal against the direction F9. . . on the ground that—
(a)
it has not begun to carry on business as mentioned in subsection (1) above;
(b)
subsections (3) and (4) above do not apply to it by reason of subsection (2) above; or
(c)
the direction is not necessary for the protection of the revenue.