The Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 2000

Amendments to the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997

6.  After regulation 30B(1) insert the following regulations—

“Modifications of section 804B of the Taxes Act

30C.— (1)  Paragraphs (2) to (4) prescribe modifications of section 804B of the Taxes Act(2) so far as it applies to the life or endowment business carried on by friendly societies.

(2) in subsection (4)—

(a) in paragraph (a) before “basic” insert “taxable”;

(b) for paragraph (b) substitute—

“(b) taxable class IV business,”.

(3) In subsection (5)—

(a) in paragraph (a) before “basic” insert “taxable”;

(b) for paragraph (b) substitute—

“(b) tax exempt basic life assurance and general annuity business; nor

(c) taxable class IV business; nor

(d) tax exempt class IV business.”.

(4) In subsection (9) for the words from “other than” to “credit in respect of” substitute

• “other than—

  (a)

  taxable basic life assurance and general annuity business, or

  (b)

  tax exempt basic life assurance and general annuity business, or

  (c)

  taxable class IV business, or

  (d)

  tax exempt class IV business,

  credit in respect of”.

(5) This regulation shall have effect in relation to accounting periods beginning on or after 1st April 2000.

Modifications of section 804D of the Taxes Act

30D.— (1)  Paragraphs (2) to (4) prescribe modifications of section 804D of the Taxes Act(3) so far as it applies to the life or endowment business carried on by non-directive societies.

(2) In subsection (2) for the words from “by which” to then end substitute

• “by which—

  (a)

  so much of the total of the amounts shown, in the society’s accounts for that period, in respect of Item 1 of Part I of Schedule 7 to the Friendly Societies (Accounts and Related Provisions) Regulations 1994(4) as is referable to that category of business exceeds—

  (b)

  so much of any commissions payable, and any expenses of management incurred, in connection with the acquisition of the business, as shown in those accounts in respect of Item 2(f) and (g) of Part I of that Schedule, as is referable to that category of business.”.

(3) In subsection (4) for the words from “claims incurred” to the end substitute “total income of that category determined under subsection (2) above.”.

(4) Omit subsection (5).

(5) This regulation shall have effect in relation to periods of account beginning on or after 1st April 2000.”.

(1)

Inserted by S.I. 1999/2636, regulation 4.

(2)

Section 804B was inserted by paragraph 17(1) of Schedule 30 to the Finance Act 2000.

(3)

Section 804D was inserted by paragraph 18(1) of Schedule 30 to the Finance Act 2000.

(4)

S.I. 1994/1983.