12.—(1) Section 432E of the Taxes Act(1) shall apply to the life or endowment business of a friendly society with the following modifications.
(2) In subsection (1), after the words “subsections (2) and (2A)” insert “or, as the case may be, subsection (2B)”.
(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—
CAS × RPAS
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.”.
Section 432E was inserted by paragraph 4 of Schedule 6 to the Finance Act 1990 and relevantly amended by paragraph 10 of Schedule 33 to the Finance Act 2003 (c. 14).