INCOME TAX Citation, commencement and effect 1 These Regulations may be cited as the Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 1997 and shall come into force on 19th March 1997, but except as otherwise provided shall have effect for accounting periods beginning on and after 1st January 1990. Interpretation 2 In these Regulations unless the context otherwise requires “the principal Regulations ” means the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1992 and “regulation” means a regulation of the principal Regulations. Amendments to the principal Regulations 3 In regulation 2 after the definitions of “directive societies” and “non-directive societies” there shall be inserted the following definition— “incorporated friendly societies” shall be construed in accordance with the definition of “incorporated friendly society” given by section 116 of the Friendly Societies Act 1992 ; . 4 In regulation 4(1) there shall be added at the end “which are not incorporated friendly societies for accounting periods beginning on and after 1st January 1990 and ending before 28th April 1993”. 5 After regulation 4 there shall be inserted the following regulation— 4A 1 Paragraph (2) prescribes a modification of subsection (7) of section 76 of the Taxes Act so far as it applies to the life or endowment business carried on by incorporated friendly societies for accounting periods beginning on and after 1st February 1993 and by friendly societies which are not incorporated friendly societies for accounting periods ending on and after 28th April 1993. 2 For paragraph (a) there shall be substituted— a a levy imposed by virtue of arrangements approved by the Friendly Societies Commission under section 141 of the 1986 Act, or. 6 1 In regulation 5(3) , for paragraph (a) of the definition of “liabilities” there shall be substituted— a in the case of a directive society or an incorporated friendly society means the liabilities of the society estimated as for the purposes of its valuation report (excluding any that have fallen due or been reinsured and any not arising under or in connection with policies or contracts effected as part of the society’s insurance business); and. 2 This regulation shall have effect for accounting periods beginning on or after 1st January 1994. 7 In regulation 18 after paragraph (1) there shall be inserted the following paragraph— 1A This regulation has effect for accounting periods beginning before 1st January 1994. 8 After regulation 18 there shall be inserted the following regulation— 18AA 1 Paragraph (2) prescribes a modification of subsection (2) of section 83 of the Finance Act 1989 so far as it applies to the life or endowment business carried on by directive societies or incorporated friendly societies for accounting periods beginning on or after 1st January 1994. 2 For that subsection there shall be substituted— 2 In subsection (1) above “brought into account” means brought into account in the society’s periodical return; and for the purposes of this subsection “periodical return” means— a the abstract of the actuary’s report referred to in section 46(3) of the Friendly Societies Act 1992, and b all forms completed in accordance with the Friendly Societies (Insurance Business) Regulations 1994 . Patrick McLoughlin Roger Knapman Two of the Lords Commissioners of Her Majesty’s Treasury 25th February 1997