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

10.  For regulation 14 substitute—

“14.— (1) Section 432E of the Taxes Act shall apply to the life or endowment business of a friendly society with the following modifications.

(2) In subsection (1), the words “or, as the case may be, subsection (2B)” shall be inserted after the words “subsections (2) and (2A)”.

(3) After subsection (2A), the following subsection shall be treated as inserted—

“(2B) In a case where an amount is taken into account under subsection (2) of section 83 of the Finance Act 1989 by virtue of subsection (2F) of that section, the amount determined under subsection (2) above is increased by

where—

CAS and AS have the same meanings as in subsection (2) above; and

RP is the amount taken into account under subsection (2) of section 83 of the Finance Act 1989 by virtue of subsection (2F) of that section.”.”.