INCOME TAX Citation and commencement 1 These Regulations may be cited as the Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 1999 and shall come into force on 13th October 1999. Interpretation 2 In these Regulations “the principal Regulations ” means the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 and “regulation” means a regulation of the principal Regulations. Amendments to the principal Regulations 3 After regulation 13 there shall be inserted the following regulations— Modifications of section 432AA of the Taxes Act 13A 1 Paragraphs (2) to (4) prescribe modifications of subsection (4) of section 432AA of the Taxes Act so far as it applies to the life or endowment business carried on by friendly societies on and after 1st April 1998, subject to the transitional provisions in Part IV of Schedule 5 to the Finance Act 1998. 2 In paragraph (c) before the words “basic life assurance” there shall be inserted the word “taxable”. 3 After paragraph (c) there shall be inserted the following paragraph— ca tax exempt basic life assurance and general annuity business; . 4 For paragraph (d) there shall be substituted the following paragraphs— d taxable class IV business; da tax exempt class IV business. Modifications of section 432AB of the Taxes Act 13B 1 Paragraphs (2) and (3) prescribe modifications of section 432AB of the Taxes Act so far as it applies to the life or endowment business carried on by friendly societies on and after 1st April 1998, subject to the transitional provisions in Part IV of Schedule 5 to the Finance Act 1998. 2 In subsection (3) before the words “basic life assurance” there shall be inserted the word “taxable”. 3 In subsection (4) before the words “basic life assurance” there shall be inserted the word “taxable”. 4 After regulation 30A there shall be inserted the following regulation— Modifications of section 755A of the Taxes Act 30B 1 Paragraphs (2) to (6) prescribe modifications of section 755A of the Taxes Act so far as it applies to the life or endowment business carried on by friendly societies in relation to accounting periods ending on or after 1st July 1999. 2 In subsections (3), (10) and (11) before the words “BLAGAB apportioned profit”, in each place where they occur, there shall be inserted the word “taxable”. 3 In subsection (4)— a the word “or” immediately following paragraph (b) shall be omitted; b after paragraph (c) there shall be inserted or d tax exempt basic life assurance and general annuity business, . 4 In subsection (6)(c) for the words “paragraphs (a) to (c)” there shall be substituted the words “paragraphs (a) to (d)”. 5 In subsection (12)— a for the words ““BLAGAB apportioned profit”” there shall be substituted the words ““taxable BLAGAB apportioned profit””; b before the words “basic life assurance” there shall be inserted the word “taxable”. 6 In subsection (13)— a the word “or” immediately following paragraph (c) shall be omitted; b in paragraph (d) before the words “basic life assurance” there shall be inserted the word “taxable”; c after paragraph (d) there shall be inserted or e tax exempt basic life assurance and general annuity business, . 5 1 Regulation 53 (modifications of Schedule 11 to the Finance Act 1996) is amended as follows in relation to accounting periods ending on or after 1st April 1996. 2 In paragraph (3) for the words ““taxable basic life and general assurance business”” there shall be substituted the words ““taxable basic life assurance and general annuity business””. 6 After regulation 53 there shall be inserted the following regulation— Modifications of Schedule 11 to the Finance Act 1996 as modified in relation to capital redemption business 53ZA 1 Paragraphs (2) and (3) prescribe modifications of Schedule 11 to the Finance Act 1996— a as that Schedule is modified in relation to companies carrying on capital redemption business by regulation 15 of the Insurance Companies (Capital Redemption Business) (Modification of the Corporation Tax Acts) Regulations 1999 , and b so far as that Schedule (as so modified) applies to the life or endowment business carried on by friendly societies for accounting periods ending on or after 1st July 1999. 2 In paragraph 2(1) before the words “basic life assurance” there shall be inserted the word “taxable”. 3 In paragraph 4(1), (2)(a), (7) and (10) before the words “basic life assurance”, wherever they occur, there shall be inserted the word “taxable”. 7 After regulation 53A there shall be inserted the following regulation— Modifications of paragraph 4 of Schedule 6 to the Finance Act 1999 53B 1 Paragraphs (2) and (3) prescribe modifications of paragraph 4 of Schedule 6 to the Finance Act 1999 in relation to a reverse premium (within the meaning of that Schedule) received on or after 9th March 1999 by a friendly society carrying on life or endowment business, not being a payment or other benefit to which the friendly society was entitled immediately before that date. 2 In paragraph (3)(b) before the words “basic life assurance” there shall be inserted the word “taxable”. 3 In paragraph (4) for the words ““basic life assurance and general annuity business”” there shall be substituted the words ““taxable basic life assurance and general annuity business””. Jim Dowd Gordon Brown Two of the Lords Commissioners of Her Majesty’s Treasury 21st September 1999