PART 3

Friendly societies carrying on long-term business

Exemption for other business

Societies registered before 1 June 1973, etc
164
1
A registered friendly society which is a qualifying society is not liable to pay corporation tax (whether on income or chargeable gains) on its profits other than those arising from—
a
life assurance business, or
b
PHI business comprised in BLAGAB or eligible PHI business.
2
A registered friendly society is a qualifying society if—
a
it was registered before 1 June 1973 (but see section 168 for circumstances in which it ceases to be a qualifying society),
b
it is registered on or after that date and its business is limited to the provision, in accordance with its rules, of benefits for or in respect of employees of a particular employer or such other group of persons as is for the time being approved for the purposes of this section by HMRC Commissioners, or
c
it is registered on or after that date but before 27 March 1974 and its rules limit the total amount which may be paid by a member by way of contributions and deposits to not more than £1 per month or such greater amount as HMRC Commissioners may authorise for the purposes of this section.
3
For the purposes of this section a registered friendly society formed on the amalgamation of two or more friendly societies is treated as registered before 1 June 1973 if, at the time of amalgamation, each of the societies amalgamated was a qualifying society (but otherwise is treated as registered at that time).
4
The exemption applies only if the society makes a claim.