# The Friendly Societies (Provisional Repayments for Exempt Business) Regulations 1993, Regulation 4: Modifications of paragraph 1 of Schedule 19AB in relation to directive societies


(1) Paragraphs (2) to (9) specify modifications of paragraph 1 of Schedule 19AB in relation to exempt business of a directive society.
(2) In sub-paragraph (1)—
(a) for the words “An insurance company carrying on pension business” there shall be substituted the words “A friendly society carrying on both tax exempt business and business other than tax exempt business”;
(b) for the words “the company” (wherever occurring) there shall be substituted the words “the society”;
(c) in paragraphs (a) and (b) for the words “pension business” (wherever occurring) there shall be substituted the words “tax exempt business”.
(3) In sub-paragraph (2)—
(a) for the words “a company” there shall be substituted the words “a society”;
(b) for paragraph there shall be substituted—
“(a) shall begin whenever—
(i) the society begins, at a time when it is carrying on only tax exempt business, to carry on business other than tax exempt business;
(ii) the society begins, at a time when it is carrying on only business other than tax exempt business, to carry on tax exempt business;
(iii) an accounting period of the society begins at a time when the society is carrying on both tax exempt business and business other than tax exempt business; or
(iv) a provisional repayment period of the society ends, at a time when the society is carrying on both tax exempt business and business other than tax exempt business; and”;
(c) in paragraph (b) for the words “the company” there shall be substituted the words “the society”.
(4) In sub-paragraph (3)—
(a) after the words “section 432A” there shall be inserted the words “, as modified by regulation 7 of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1992,”;
(b) for the word “company” (wherever occurring) there shall be substituted the word “society”.
(5) In sub-paragraph (4), in paragraph (a), there shall be inserted after the words “Management Act” the words “, unless the accounting period in question was one for which no notice as mentioned in subsection (1) of the said section 11 was served on the society”.
(6) For sub-paragraph (5) there shall be substituted—
“(5) In sub-paragraph (1) above “the appropriate portion” means—
(a) in so far as the payment is referable to business which is tax exempt business by virtue of section 460(1)—
(i) where the payment or distribution in question is income arising from assets linked solely to tax exempt basic life assurance and general annuity business, the whole; and
(ii) in any other case, the provisional fraction; and
(b) in so far as the payment is referable to business which is tax exempt business by virtue of section 461(1) or 461B(1)—
(i) where the payment or distribution in question is income arising from assets linked solely to long term business other than life or endowment business, or income arising from assets other than those of the society’s long term business fund, the whole; and
(ii) in any other case, the provisional fraction determined in relation to long term business other than life assurance business.
(5A) In sub-paragraph (5) above—
“tax exempt basic life assurance and general annuity business” shall be construed in accordance with the definition inserted in section 431(2) by regulation 5(2) of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1992;
“long term business” shall be construed in accordance with the definition substituted in section 431(2) by regulation 5(4) of those Regulations; and
“life or endowment business” has the meaning given by section 466(1).”.
(7) In sub-paragraph (7)—
(a) for the words “pension business” (wherever occurring) there shall be substituted the words “tax exempt business”;
(b) for the word “company” (wherever occurring) there shall be substituted the word “society”.
(8) Sub-paragraphs (8) and (9) shall be omitted.
(9) For sub-paragraph (10) there shall be substituted—
“(10) In this paragraph—
“tax exempt business” means any business of a friendly society the profits arising from which are exempt from income tax and corporation tax under section 460(1), 461(1) or 461B(1);
“tax exempt business repayments” means
(a) provisional repayments; and
(b) repayments of income tax, and payments of tax credits, on any claim such as is mentioned in section 7(6) or in section 42(5A) of the Management Act.”.

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Source: https://www.legislation.gov.uk/uksi/1993/3112/regulation/4 (the official version)
Page: https://openlegislation.uk/friendly-societies-provisional-repayments-for-exempt-business-regulations-1993/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.