Finance Act 2012

Section 176

SCHEDULE 18 U.K. Part 3: consequential amendments

Income and Corporation Taxes Act 1988 U.K.

1 U.K. ICTA is amended as follows.

2 U.K. Omit section 459 (unregistered friendly societies: exemption from tax).

3 U.K. Omit section 460 (exemption from tax in respect of life or endowment business).

4 U.K. Omit section 461 (taxation in respect of other business).

5 U.K. Omit sections 461A to 461C (taxation in respect of other business: incorporated friendly societies qualifying for exemption).

6 U.K. Omit section 461D (transfers of business).

7 U.K. Omit section 462 (conditions for tax exempt business).

8 U.K. Omit section 463 (long-term business of friendly societies: application of Corporation Tax Acts).

9 U.K. Omit section 464 (maximum benefits payable to members).

10 U.K. Omit section 465 (old societies).

11 U.K. Omit section 465A (assets of branch of registered friendly society to be treated as assets of society after incorporation).

12 U.K. Omit section 466 (interpretation of Chapter 2 of Part 12).

13 (1) Schedule 15 (qualifying policies) is amended as follows. U.K.

(2) In paragraph 3—

(a) in sub-paragraphs (1) and (4)(c), for “tax exempt life or endowment business” substitute “ exempt BLAGAB or eligible PHI business ”,

(b) in sub-paragraph (8)(b)(i), for “a new society” substitute “ a society other than an old society ”, and

(c) in sub-paragraph (8)(b)(ii), for “a society other than a new society” substitute “ an old society ”.

(3) In paragraph 4(3)(b)(ii), for “a new society” substitute “ a society other than an old society ”.

(4) Omit paragraph 5.

(5) In paragraph 6—

(a) in sub-paragraph (1)—

(i) omit “(as defined in section 466)” in both places, and

(ii) for “tax exempt life or endowment business” substitute “ exempt BLAGAB or eligible PHI business ”, and

(b) in sub-paragraph (2), for “section 464” substitute “ section 160 of the Finance Act 2012 ”.

(6) After paragraph 6 insert—

“6A Any expression—

(a) which is used in any provision made by any of paragraphs 3 to 6, and

(b) which is used in Part 3 of the Finance Act 2012,

has the same meaning in that provision as it has in that Part.”

Taxation of Chargeable Gains Act 1992 U.K.

14 U.K. TCGA 1992 is amended as follows.

15 U.K. In section 100(2B)(b) (exemption for authorised unit trusts etc), for “section 466(2) of the Taxes Act” substitute “ section 172 of the Finance Act 2012 ”.

16 U.K. In section 171(5) (transfers within a group: general provisions), for “section 461B of the Taxes Act” substitute “ section 165 of the Finance Act 2012 ”.

Income Tax (Trading and Other Income) Act 2005 U.K.

17 U.K. ITTOIA 2005 is amended as follows.

18 (1) Section 531 (gains from contracts for life insurance etc: cases where income tax not treated as paid) is amended as follows. U.K.

(2) In subsection (3)(a), for “tax exempt life or endowment business” substitute “ exempt BLAGAB or eligible PHI business ”.

(3) In subsection (4), for the definition of “tax exempt life or endowment business” substitute—

““exempt BLAGAB or eligible PHI business” has the same meaning as in Part 3 of FA 2012 (see sections 154 and 155).”

Corporation Tax Act 2009 U.K.

19 U.K. CTA 2009 is amended as follows.

20 U.K. In section A1(2) (overview of the Corporation Tax Acts), after paragraph (k) (as inserted by paragraph 136(b) of Schedule 16 to this Act) insert “, and

(l) Part 3 of that Act (friendly societies carrying on long-term business).”

21 U.K. In section 564(1) (section 563: interpretation), for “section 460 of ICTA” substitute “ section 158 of FA 2012 ”.

22 U.K. In section 931S(3) (company distributions: meaning of “small company”), in the definition of “friendly society”, for “section 466(2) of ICTA” substitute “ section 172 of FA 2012 ”.

Consequential repeals U.K.

23 U.K. In consequence of the amendments made by this Schedule, omit the following provisions—

(a) in FA 1990—

(i) section 49(1) to (4),

(ii) section 50, and

(iii) paragraph 6 of Schedule 9,

(b) in FA 1991, paragraphs 1 to 3 of Schedule 9,

(c) in FA 1995, paragraphs 1 and 2 of Schedule 10,

(d) in FA 1996, section 171,

(e) in FA 2007—

(i) section 44,

(ii) paragraphs 40 and 43 of Schedule 7, and

(iii) Schedule 12, and

(f) in FA 2008—

(i) section 44, and

(ii) Schedule 18.