9. After regulation 19 there shall be inserted the following regulations—
19A.—(1) Paragraphs (2) and (3) prescribe modifications of paragraph 1 of Schedule 8 to the Finance Act 1990(1) so far as it applies to the life or endowment business carried on by friendly societies and paragraph (4) prescribes a further modification of that paragraph so far as it applies to the life or endowment business carried on by non-directive societies.
(2) After sub-paragraph (1) (e) there shall be added—
“(f) “tax exempt basic life assurance and general annuity business”, “taxable basic life assurance and general annuity business”, “taxable basic life assurance business” and “taxable general annuity business” shall be construed in accordance with section 431 (2) of the Taxes Act 1988(2).”.
(3) In sub-paragraph (2), before the words “basic life assurance business” and “general annuity business”, wherever occurring, there shall be inserted the word “taxable”.
(4) The following sub-paragraph shall be added at the end—
“(3) References in this Schedule to assets, in relation to a company’s long term business fund, have the same meaning as in section 432A(1) of the Taxes Act 1988(3).”.
19B.—(1) Paragraphs (2) and (3) prescribe modifications of paragraph 3 of Schedule 8 to the Finance Act 1990(4) so far as it applies to the life or endowment business carried on by friendly societies.
(2) In sub-paragraph (1)(c)—
(a)before the words “basic life assurance and general annuity business” where they first occur there shall be inserted the word “taxable”; and
(b)for the words “basic life assurance and general annuity business” where they secondly occur there shall be substituted the words “taxable basic life assurance and general annuity business or tax exempt basic life assurance and general annuity business”.
(3) In sub-paragraph (2) (a), after the words “pension business” there shall be inserted the words “or tax exempt basic life assurance and general annuity business”.”.
1990 c. 29; paragraph 1 of Schedule 8 was amended by sub-paragraphs (1) to (4) of paragraph 15 of Schedule 7 to the Finance Act 1991. Schedule 8 was repealed by Schedule 12 to the Taxation of Chargeable Gains Act 1992.
Section 431(2) was amended by paragraph 1(2) of Schedule 6 to the Finance Act 1990, by paragraph 2 of Schedule 7 to the Finance Act 1991, by section 99(2) of the Finance Act 1993 (c. 34) and by regulation 5 of S.I. 1992/1655.
Section 432A was inserted by paragraph 4 of Schedule 6 to the Finance Act 1990 and amended by paragraphs 3 and 18 of Schedule 7 to the Finance Act 1991 with respect to accounting periods beginning on or after 1st January 1992. Subsections (11) to (14) of section 432A were added by regulation 8(5) of S.I. 1992/1655.
Paragraph 3 of Schedule 8 was amended by paragraph 15(5) of Schedule 7 to the Finance Act 1991. Schedule 8 was repealed by Schedule 12 to the Taxation of Chargeable Gains Act 1992.