The Friendly Societies (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1996

Modifications of the Friendly Societies Regulations

5.—(1) Paragraphs (2) and (3) below specify modifications of regulation 4.

(2) In paragraph (3), for sub-paragraph (a) there shall be substituted—

“(a) for the words from the beginning to “a company” there shall be substituted the words “Subject to sub-paragraphs (2A) and (2B) below, for the purposes of this paragraph a “provisional repayment period” of a society”.”

(3) After paragraph (3), the following paragraphs shall be inserted—

“(3A) In sub-paragraph (2A)—

(a) for the words “Sub-paragraphs (2B) and (2C) below have effect” there shall be substituted the words “Sub-paragraph (2B) below has effect”;

(b) for the words “companies carrying on pension business” there shall be substituted the words “societies carrying on tax exempt business”.

(3B) In sub-paragraph (2B)—

(a) the words “Subject to paragraph (2C) below,” shall be omitted;

(b) for the words “a company” there shall be substituted the words “a society”;

(c) for paragraph (a) there shall be substituted—

“(a) shall begin whenever—

(i) the society begins, at a time when it is carrying on only tax exempt business, to carry on business other than tax exempt business;

(ii) the society begins, at a time when it is carrying on only business other than tax exempt business, to carry on tax exempt business;

(iii) an accounting period of the society begins at a time when the society is carrying on both tax exempt business and business other than tax exempt business; or

(iv) a provisional repayment period of the society ends, at a time when the society is carrying on both tax exempt business and business other than tax exempt business; and;”

(d) in paragraph (b) for the words “the company”(wherever occurring) there shall be substituted the words “the society”.

(3C) Sub-paragraph (2C) shall be omitted..”