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PART 3Friendly societies carrying on long-term business

Exemption for other business

168Withdrawal of qualifying status

(1)HMRC Commissioners may give a direction under this section to—

(a)a registered friendly society which is a qualifying society for the purposes of section 164 as a result of its registration before 1 June 1973, or

(b)an incorporated friendly society which is a qualifying society for the purposes of section 165 as a result of falling within case A or C and whose business and rules are not of a kind mentioned in section 164(2)(b) or (c).

(2)The Commissioners may give the direction if—

(a)the society begins to carry on relevant other business or, in their opinion, begins to carry on relevant other business on an enlarged scale or of a new character, and

(b)it appears to them, having regard to the restrictions imposed by section 164 on registered friendly societies registered on or after 1 June 1973, that for the protection of the revenue it is expedient to give the direction.

(3)The direction is that (and has the effect that) the society ceases to be a qualifying society as from the date of the direction.

(4)The society may appeal against the direction on the ground that—

(a)it has not begun to carry on business as mentioned in subsection (2)(a), or

(b)the direction is not necessary for the protection of the revenue.

(5)The appeal must be made within 30 days of the date on which the direction is given.