Statutory Instrument 2000 No. 2710

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

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© Crown Copyright 2000

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" Modification of section 43F of the Taxes Act
     4A.  - (1) Paragraph (2) prescribes a modification of section 43F(1) of the Taxes Act[3] so far as it applies to the life or endowment business carried on by friendly societies.

    (2) For the words from "required" to the end substitute "made up for the purposes of an investigation into the financial condition of a friendly society under section 46 or 47 of the Friendly Societies Act 1992[4].".

    (3) This regulation shall have effect in relation to transactions entered into on or after 21st March 2000.".

     4.  - (1) In regulation 13(2), in the substituted subsection (6) of section 432A of the Income and Corporation Taxes Act 1988[5] - 

(a) in paragraph (a) of that subsection insert "(but not below nil)" after "reduced" and insert "net" before "values";

(b) for paragraph (b) of that subsection substitute - 


" (b) the denominator is the aggregate of - 


(i) the numerator given by paragraph (a) above; and

(ii) the numerators given by that paragraph in relation to the other categories of business.".

    (2) This regulation shall have effect in relation to accounting periods beginning on or after 1st January 2000 and ending on or after 21st March 2000.

     5. After regulation 30A[6] insert the following regulation - 

" Modification of section 587B of the Taxes Act
     30AA.  - (1) Paragraph (2) prescribes a modification of section 587B of the Taxes Act[7] so far as it applies to the life or endowment business carried on by friendly societies.

    (2) In subsection (8)(b)(ii) before "basic life assurance" insert "taxable".

    (3) This regulation shall have effect in relation to disposals made by friendly societies on or after 1st April 2000.".

     6. After regulation 30B[8] 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[9] 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[10] 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[11] 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.".

Jim Dowd

Bob Ainsworth
Two of the Lords Commissioners of Her Majesty's Treasury

3rd October 2000

[2] S.I. 1997/473, amended by S.I. 1997/2877, 1998/1871 and 1999/2636.back

[3] Section 43F was inserted by section 110(1) of the Finance Act 2000 (c. 17).back

[4] 1992 c. 40.back

[5] Section 432A was inserted by paragraph 4 of Schedule 6 to the Finance Act 1990 and subsection (6) was amended by paragraph 13(3) of Schedule 8 to the Finance Act 1995 (c. 4) and section 109(3) and (4) of the Finance Act 2000.back

[6] Inserted by S.I. 1998/1871, regulation 25(5) (and renumbered "30A" by S.I. 1998/3174, regulation 13).back

[7] Section 587B was inserted by section 43(1) of the Finance Act 2000.back

[8] Inserted by S.I. 1999/2636, regulation 4.back

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

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

[11] S.I. 1994/1983.back