SCHEDULES

SCHEDULE 12Friendly societies: transfers to insurance companies etc

Exempt life or endowment business

2

1

Section 464 of ICTA (maximum benefits payable to members) is amended as follows.

2

For the first sentence of subsection (1) substitute—

1

Subject to subsections (2) and (3) below, a person is not entitled to have at any time outstanding contracts with any one or more friendly societies, registered branches or insurance companies which (taking them all together) are for the assurance of—

a

more than £750 by way of gross sum under business which is afforded exemption from corporation tax by section 460, or

b

more than £156 by way of annuity under such business.

3

In subsection (3), for the words preceding the paragraphs substitute “ With respect to contracts for the assurance of gross sums under business which is afforded exemption from corporation tax by section 460, a person is not entitled to have outstanding at any time with any one or more friendly societies, registered branches or insurance companies— ”.

4

In subsection (4A), for “tax exempt life or endowment business” substitute “ business which is afforded exemption from corporation tax by section 460 if they are ”.

5

In subsection (6), for “member has outstanding with one or more society or branch” substitute “ person has outstanding with one or more societies, branches or companies ”.

6

In subsection (7)—

a

for “or registered branch” substitute “ , registered branch or insurance company ”,

b

for “member” (in both places) substitute “ person ”, and

c

for “or registered branches (taking together all such societies or branches throughout the United Kingdom)” substitute “ , registered branches or insurance companies (taken together) ”.