The Friendly Societies (Transfers of Other Business) (Modification of the Corporation Tax Acts) Regulations 2008

Modification of section 461B (taxation in respect of other business: incorporated friendly societies etc)

6.—(1) Modify section 461B (taxation in respect of other business: incorporated friendly societies etc)(1) as follows.

(2) In subsection (3) after “qualifying society” insert “, or a transferee within subsection (3B) below,”.

(3) After subsection (3) insert—

“(3A) But where there has been a transfer of other business within section 461D(1), subsection (3) above shall not apply to a payment made by the transferee if—

(a) the transferor was a society to which subsection (2) above did not apply, and

(b) the member to whom the payment is made was a member of the transferor.

(3B) And where there has been a transfer of other business within section 461D(3), subsection (3) above shall apply to a payment made by the transferee if—

(a) the transferor was a society to which subsection (2) above applied, and

(b) the member to whom the payment is made was a member of the transferor.

(3C) Where subsection (3B) above applies, for the purposes of subsection (3) above—

(a) any payment of sums by a member to the society by way of contributions or deposits shall be treated as including any payment to the transferor, and

(b) any payment or repayment of sums to a member by the society within subsection (3)(a) or (b) shall be treated as including any payment or repayment made by the transferor.

(3D) In subsections (3) to (3C) above “transferee” and “transferor” shall be construed in accordance with section 461D.”.

(1)

Section 461B(1) was inserted by paragraph 7 of Schedule 9 to the Finance (No 2) Act 1992 (c. 48) and amended by paragraph 82 of Schedule 1 to the Income Tax Act 2007, paragraph 42 of Schedule 7and paragraph 5 of Schedule 12 to the Finance Act 2007 and article 35 of S.I. 2001/3629.