Textual Amendments
F1Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20
18(1)Where—U.K.
(a)shares in a company have been issued under any arrangements for the issue of shares in that company in respect of the interests of the members of a mutual company; and
(b)a person to whom shares were issued under those arrangements falls by virtue of [F2subsection (2)(a)] of section 136 to be treated as having exchanged interests of his as a member of the mutual company for shares issued under those arrangements,
paragraph 2 above shall have effect (notwithstanding that section) as if the time of that person’s acquisition of the shares were the time when they were issued to him.
(2)Where—
(a)a registered friendly society has been incorporated under the Friendly Societies Act 1992, and
(b)there has been a change under Schedule 4 to that Act as a result of which a member of the registered society, or of a branch of the registered society, has become a member of the incorporated society or of a branch of the incorporated society,
paragraph 2 above shall have effect (notwithstanding anything in section 217B) in relation to the interests and rights in the incorporated society, or the branch of the incorporated society, which that person had immediately after the change, as if the time of their acquisition by him were the time of the change.
(3)In this paragraph—
“the incorporated society”, in relation to the incorporation of a registered friendly society, means the society after incorporation;
[F3“insurance company” means an undertaking carrying on the business of effecting or carrying out contracts of insurance and, for the purposes of this definition, “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;]
“mutual company” means—
a mutual insurance company; or
a company of another description carrying on a business on a mutual basis;
“mutual insurance company” means any insurance company carrying on a business without having a share capital;
“the registered society”, in relation to the incorporation of a registered friendly society, means the society before incorporation.]
Textual Amendments
F2Words in Sch. A1 para. 18(1)(b) substituted (with effect in accordance with Sch. 9 paras. 7, 8 of the amending Act) by Finance Act 2002 (c. 23), Sch. 9 para. 5(13)
F3Words in Sch. A1 para. 18(3) substituted (with effect in accordance with art. 71(2) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), arts. 1(2)(a), 71(1)