PART 3Friendly societies carrying on long-term business
Exempt BLAGAB or eligible PHI business
159Exception in case of breach of maximum benefits payable to members
1
The exemption from corporation tax afforded by section 153, 156(3) or (5) or 158 does not apply in relation to so much of the profits arising to a friendly society or insurance company from any business as is attributable to a policy which—
a
is not a qualifying policy as a result of sub-paragraph (2) of paragraph 6 of Schedule 15 to ICTA and is not an excluded policy, and
b
would not be a qualifying policy as a result of that sub-paragraph if all excluded policies were ignored.
2
A policy is an excluded policy if—
a
it is held otherwise than with the friendly society or insurance company, or
b
the person who has the contract effecting the policy acquired the rights under it on an assignment otherwise than for money or money's worth.
3
This section does not withdraw the exemption from corporation tax afforded by section 153, 156(3) or (5) or 158 in relation to profits arising from any part of a business relating to contracts made on or before 3 May 1966.