Finance Act 1984

73 Insurance business of registered friendly societies

(1) In relation to registered friendly societies, references to tax exempt life or endowment business, as defined in section 337(3) of the Taxes Act, shall be construed in accordance with subsections (2) and (3) below.

(2) In so far as the profits of a registered friendly society from life or endowment business relate to contracts made after 13th March 1984, the references in subsections (2) and (3) of section 332 of the Taxes Act (business exempt from income tax and corporation tax) to £500 and £104 (the basic limits for gross sums assured and annuities) shall have effect as references to £750 and £156 respectively.

(3) Subsection (5) of the said section 332 (which, in the case of certain registered friendly societies, increases the tax exempt limits in subsections (2) and (3) of that section to £2,000 and £416) shall not have effect with respect to sums assured or annuities granted under contracts made after 13th March 1984.

(4) In consequence of the preceding provisions of this section and subsection (5) below, in section 1 of the [1970 c. 31 (N.I.).] Friendly Societies Act (Northern Ireland) 1970 and section 7 of the [1974 c. 46.] Friendly Societies Act 1974 (societies which may be registered),—

(a) paragraph (a) of subsection (3), and

(b) subsection (3A),

shall not have effect with respect to benefits secured by contracts made after 13th March 1984.

(5) In the following enactments which specify, in relation to tax exempt life or endowment business, maximum benefits which may be provided for members, and persons claiming through members, of registered friendly societies, namely,—

(a) subsection (1) of section 55 of the Friendly Societies Act (Northern Ireland) 1970; and

(b) subsection (1) of section 64 of the Friendly Societies Act 1974,

in paragraph (a) for " £2,000 " there shall be substituted " £750 " and in paragraph (b) for "£416" there shall be substituted " £156 ".

(6) The amendments made by subsection (5) above have effect—

(a) in relation to benefits secured by contracts made after 13th March 1984; and

(b) in relation to the aggregate of the benefits secured by contracts made after that day and those secured by contracts made on or before that day.

(7) If, after 13th March 1984, the committee of a registered society or branch whose rules make provision for it to carry on life or endowment business resolve to accept, in respect of any contract falling within subsection (8) below, premiums of amounts arrived at by deducting 15 per cent, from the premiums provided for by the rules of the society or branch (that is to say by deducting the same amount as, apart from section 72 above, would have been deductible by way of relief under section 19 of the Taxes Act),—

(a) the resolution shall be deemed to be permitted by the principal Act and the rules of the society or branch; and

(b) nothing in the principal Act shall require the registration of the resolution ; and

(c) together with the annual return of the society or branch for the year of account ending 31st December 1984, the society or branch shall send a copy of the resolution to the registrar.

(8) Subsection (7) above applies to any contract entered into by a registered society or branch—

(a) which is for the assurance under life or endowment business of any gross sum ; and

(b) which is entered into pursuant to a proposal received by the society or branch on or before 13th March 1984; and

(c) which is one which the society might lawfully have entered into on that date ; and

(d) which is entered into after 13th March 1984 and before 1st May 1984.

(9) In subsection (7) above " the principal Act " means, according to the enactment under which the society or branch is registered,—

(a) the [1970 c. 31 (N.I.).] Friendly Societies Act (Northern Ireland) 1970 ; or

(b) the [1974 c. 46.] Friendly Societies Act 1974 ;

and subsections (7) and (8) shall be construed as one with the principal Act.