Insertion of regulation 7A

7.  After regulation 7 (meaning of “long-term insurance fund” for a society which does not maintain separate assets) insert—

“Modifications of section 431H of the Taxes Act

7A.— (1) Paragraphs (2) to (4) prescribe modifications of section 431H of the Taxes Act(1) so far as it applies to the life or endowment business carried on by friendly societies.

(2) For subsection (1) substitute—

“(1) This section applies in relation to a friendly society which carries on two or more of the following—

(a) life assurance business,

(b) taxable PHI business,

(c) tax exempt PHI business, and

(d) insurance business of any other kind.”

(3) In subsection (2)—

(a) omit the word “and” immediately following paragraph (a),

(b) after paragraph (a) insert—

“(aa) taxable PHI business,

(ab) tax exempt PHI business, and”, and

(c) in paragraph (b) for “the” substitute “any”.

(4) Omit subsections (3) and (4).”

(1)

Section 431H, together with section 431G, was substituted for section 432 by paragraph 4 of Schedule 8 to the Finance Act 2007 (c. 11).