PART 3Friendly societies carrying on long-term business
Exemption for other business
168Withdrawal of qualifying status
1
HMRC Commissioners may give a direction under this section to—
a
a registered friendly society which is a qualifying society for the purposes of section 164 as a result of its registration before 1 June 1973, or
b
an incorporated friendly society which is a qualifying society for the purposes of section 165 as a result of falling within case A or C and whose business and rules are not of a kind mentioned in section 164(2)(b) or (c).
2
The Commissioners may give the direction if—
a
the society begins to carry on relevant other business or, in their opinion, begins to carry on relevant other business on an enlarged scale or of a new character, and
b
it appears to them, having regard to the restrictions imposed by section 164 on registered friendly societies registered on or after 1 June 1973, that for the protection of the revenue it is expedient to give the direction.
3
The direction is that (and has the effect that) the society ceases to be a qualifying society as from the date of the direction.
4
The society may appeal against the direction on the ground that—
a
it has not begun to carry on business as mentioned in subsection (2)(a), or
b
the direction is not necessary for the protection of the revenue.
5
The appeal must be made within 30 days of the date on which the direction is given.