PART 3Friendly societies carrying on long-term business
Exemption for other business
165Incorporated friendly societies
1
An incorporated friendly society which is a qualifying society is not liable to pay corporation tax (whether on income or chargeable gains) on its profits other than those arising from—
a
life assurance business, or
b
PHI business comprised in BLAGAB or eligible PHI business.
2
An incorporated friendly society is a qualifying society if it falls within any of cases A to C (but see section 168 for circumstances in which it ceases to be a qualifying society).
3
Case A is that, immediately before its incorporation, it was a registered friendly society which was a qualifying society within the meaning of section 164.
4
Case B is that—
a
it was formed otherwise than by the incorporation of a registered friendly society or the amalgamation of two or more friendly societies, and
b
its business is limited to the provision, in accordance with its rules, of benefits for or in respect of employees of a particular employer or such other group of persons as is for the time being approved for the purposes of this section by HMRC Commissioners.
5
Case C is that—
a
it was formed by the amalgamation of two or more friendly societies, and
b
at the time of the amalgamation each of the societies being amalgamated was a qualifying society within the meaning of section 164 or this section.
6
The exemption applies only if the society makes a claim.
7
The exemption does not apply to any profits arising or accruing to the society from, or by reason of its interest in, a body corporate—
a
which is a subsidiary of the society (within the meaning of FSA 1992), or
b
of which the society has joint control (within the meaning of FSA 1992).