INCOME TAX Citation, commencement and effect 1 These Regulations may be cited as the Friendly Societies (Provisional Repayments for Exempt Business) (Amendment) Regulations 2001 and shall come into force on 1st January 2002, and shall have effect in relation to accounting periods of friendly societies beginning on or after 1st January 2002. Interpretation 2 In these Regulations— “the principal Regulations ” means the Friendly Societies (Provisional Repayments for Exempt Business) Regulations 1999 ; “Schedule 19AB” means Schedule 19AB to the Income and Corporation Taxes Act 1988 . Amendments to the principal Regulations and further modifications to Schedule 19AB 3 In regulation 2 of the principal Regulations, in the definition of “exempt business” “, 461(1) or 461B(1)” shall be omitted. 4 In regulation 3(1) of the principal Regulations (application of Schedule 19AB to friendly societies) the words from “as it” to the end shall be omitted. 5 Regulation 3(3) of the principal Regulations (application of Schedule 19AB to friendly societies on or after 6th April 2004) shall be omitted. 6 In the paragraph 1(1) of Schedule 19AB substituted by regulation 4(2) of the principal Regulations— a the words “the aggregate of the following amounts” shall be omitted; b sub-paragraphs (a) and (b) shall be omitted; c after sub-paragraph (c)(i) there shall be added the word “and”; and d sub-paragraph (c)(iii) and the word “and” which precedes it shall be omitted. 7 In the sub-paragraphs (5) to (5E) of paragraph 1 of Schedule 19AB substituted by regulation 5(2) of the principal Regulations— a sub-paragraphs (5) and (5B) shall be omitted; b in sub-paragraph (5D) for the words “sub-paragraphs (5) and” there shall be substituted the word “sub-paragraph”; c in sub-paragraph (5E) for “(5) to” there shall be substituted “(5A) and”. 8 Regulations 6 and 7 of the principal Regulations shall be omitted. 9 1 Regulation 8 of the principal Regulations shall be amended as follows. 2 For paragraph (3) there shall be substituted the following paragraph— 3 Sub-paragraph (3) shall be omitted. 3 For paragraph (4) there shall be substituted the following paragraph— 4 For sub-paragraph (4) there shall be substituted the following sub-paragraph— 4 The provisional fraction for the purposes of this paragraph for an accounting period which begins before 6th April 2004 shall be such fraction as the society may reasonably estimate, being a fraction which is not likely to be greater than the relevant fraction for its tax exempt business which would be determined in accordance with subsections (5) to (9B) of section 432A for that accounting period. 4 In paragraph (5) there shall be added at the end the following sub-paragraphs— c the words “or repaid” shall be omitted; d paragraph (a) shall be omitted; e for “9(2)” there shall be substituted “9(3)”; f for words “or section 42(4) of the Management Act” shall be omitted. 5 For paragraph (6) and (7) there shall be substituted the following paragraph— 6 Paragraphs (10) and (11) shall be omitted. 10 For regulation 9 of the principal Regulations there shall be substituted the following regulation— Disapplication of Paragraph 2 of Schedule 19AB 9 Paragraph 2 of Schedule 19AB shall not apply to exempt business of a friendly society. 11 1 Regulation 10 of the principal Regulations shall be amended as follows. 2 In paragraph (3) there shall be added at the end the following sub-paragraphs— c for the words “assumptions in sub-paragraphs (1B) and (1C)” there shall be substituted the words “assumption in sub-paragraph (1B)”; d the words “or repaid” shall be omitted; e for “9(2)” there shall be substituted “9(3)”; f the words “or section 42(4) of the Management Act” shall be omitted; g paragraph (a) shall be omitted. 3 In paragraph (4) there shall be added at the end the following sub-paragraphs— c the word “first” shall be omitted; d the words “or repayments” shall be omitted; e paragraph (a) shall be omitted; f in paragraph (b) for the words “that sub-paragraph” there shall be substituted the words “sub-paragraph (1A) above”. 4 For paragraph (5) there shall be substituted the following paragraph— 5 Sub-paragraph (1C) shall be omitted. 5 For paragraph (7) there shall be substituted the following paragraph— 7 In sub-paragraph (8)— a for the word “company” (wherever occurring) there shall be substituted the word “society”; b the words “or repaid” shall be omitted; c paragraph (a) shall be omitted; d in paragraph (b) for the words “that sub-paragraph” there shall be substituted the words “sub-paragraph (1A) above”. 12 1 Regulation 12 of the principal Regulations shall be amended as follows. 2 In paragraph (2)— a after “sub-paragraph (1)” there shall be inserted ; b in sub-paragraph (a) so formed, in the definition of “tax exempt business” “, 461(1) or 461B(1)” shall be omitted; c after sub-paragraph (a) there shall be added the following sub-paragraph— b in the definition of “provisional fraction” for the words “paragraphs 1(4) and 2” there shall be substituted “paragraph 1(4)”. 3 For paragraph (3) there shall be substituted the following paragraph— 3 Sub-paragraphs (4) to (6) shall be omitted. 13 In the heading to Schedule 19AB for the words “PENSION BUSINESS: PAYMENTS ON ACCOUNT OF TAX CREDITS AND DEDUCTED TAX” there shall be substituted the words “TAX EXEMPT BUSINESS: PAYMENTS ON ACCOUNT OF TAX CREDITS”. 14 The Schedule to these Regulations sets out the text of Schedule 19AB as applied by the principal Regulations and these Regulations. Nick Ainger John Heppell Two of the Lords Commissioners of Her Majesty’s Treasury 11th December 2001