Explanatory note

These Regulations amend the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1992 (S.I. 1992/1655) (“the principal Regulations”). The amendments take account of the changes to the law relating to friendly societies resulting from the enactment and bringing into force of the Friendly Societies Act 1992 (“the 1992 Act”). The 1992 Act provides for a new classification of friendly societies into “incorporated friendly societies” and “registered friendly societies”.

Regulation 1 provides for citation, commencement and effect, and regulation 2 contains definitions.

The remaining regulations make amendments to the principal Regulations.

Regulation 3 inserts a new definition into regulation 2 of the principal Regulations.

Regulations 4, 5, 11 and 12 amend the principal Regulations to take account of the new classification of friendly societies.

Regulations 6 and 8 respectively amend regulations 5 and 9(2) of the principal Regulations to take account of provisions in the 1992 Act. Regulation 6 includes amendments to the definitions of “directive society” and “non-directive society”, but the amended definitions will not result in any friendly society being reclassified.

Regulations 7, 9 and 10 respectively amend regulations 8, 13 and 16 of the principal Regulations. The modifications of the Corporation Tax Acts prescribed in the principal Regulations are no longer appropriate in the case of all non-directive societies, and the scope of these regulations has accordingly been reduced.

The Regulations have effect, except in relation to incorporated friendly societies (as defined in the 1992 Act), with respect to accounting periods beginning on or after1st January 1994. In relation to incorporated friendly societies they have effect with respect to accounting periods beginning on or after 19th February 1993. Authority for the retrospective effect of these Regulations is given by section 463(4) of the Income and Corporation Taxes Act 1988.