PART 2AMENDMENTS TO PRIMARY LEGISLATION

The Income and Corporation Taxes Act 1988 (c. 1)

Taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society36

1

Amend section 461C (taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society) as follows.

2

In subsection (1)—

a

for “to (5)” substitute “and (4)”;

b

in paragraph (b) for “Friendly Societies Commission” substitute “Board”.

3

In subsection (2)—

a

for “to (5)” substitute “and (4)”;

b

in paragraph (a) for “Friendly Societies Commission” substitute “Board”.

4

In subsection (3)—

a

for “Commission” in the first two places where it occurs substitute “Board”;

b

for the words from “serve a notice” to the end substitute “give a direction to the society under subsection (4) below.”.

5

For subsections (4) to (7) substitute—

4

A direction under this subsection is that (and has the effect that) the society to which it is given shall cease to be a qualifying society as from the date of the direction.

5

A society to which a direction is given may, within 30 days of the date on which it is given, appeal against the direction to the Special Commissioners on the ground that—

a

it has not begun to carry on business as mentioned in subsection (1) above;

b

subsections (3) and (4) above do not apply to it by reason of subsection (2) above; or

c

the direction is not necessary for the protection of the revenue.