Explanatory note

Section 463 of the Income and Corporation Taxes Act 1988 provides that the enactments relating to corporation tax apply to the life or endowment business carried on by friendly societies in the same way as they apply to long-term business of insurance companies, subject to such modifications and exceptions as may be prescribed by the Treasury.

These Regulations amend the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 (S.I. 1997/473) for accounting periods beginning and ending in 2004. For that year, directive friendly societies are governed by the Interim Prudential Sourcebook (Insurers). These Regulations make technical amendments to include references to that Sourcebook, and amend references to the Interim Prudential Sourcebook (Friendly Societies) so as to refer to non-directive friendly societies.

The power to make retrospective provision is conferred by section 463(4) of the Income and Corporation Taxes Act 1988.

These Regulations do not impose any new costs on business.