Regulation 4 Substitution of paragraph 1(1) of Schedule 19AB (as unamended by Schedule 3)

Paragraph (2) substitutes the following sub-paragraph for sub-paragraph (1) of paragraph 1 of Schedule 19AB^f1 (as unamended by Schedule 3) in relation to exempt business of a friendly society.

For that sub-paragraph (1) there shall be substituted–

“(1)

A friendly society carrying on both tax exempt business and business other than tax exempt business shall for each provisional repayment period in an accounting period be entitled on a claim made in that behalf to a payment (in this Schedule referred to as a “provisional repayment”) of an amount equal to the aggregate of the following amounts–

(a)

the appropriate portion of any income tax borne by deduction on any payment received by the society in that provisional repayment period that is referable to its tax exempt business, and either

(b)

as respects any distribution made before 6th April 1999 that–

(i)

is received by the society in that provisional repayment period, and

(ii)

is referable to its tax exempt business,

the appropriate portion of any tax credit in respect of that distribution, or

(c)

as respects any distribution made on or after 6th April 1999 and before 6th April 2004 that–

(i)

is received by the society in that provisional repayment period,

(ii)

is referable to its tax exempt business, and

(iii)

is a distribution to which section 90(1)(b) of the Finance Act 1998 applies,

the appropriate portion of any tax credit in respect of that distribution.”.