»Ê¹ÚÌåÓýapp

In addition, if an insurance company acquires by way of transfer of engagements from a friendly society any “relevant other business�, when the society was exempt from corporation tax on profits arising from that business as a result of FA12/S164 (societies registered before 1 June 1973) or FA12/S165 (incorporated friendly societies) prior to the transfer, the insurance company is exempt from corporation tax on its profits arising from the “relevant other business� so far as relating to contracts made before that time (FA12/S166(2)).

“Relevant other business� means any business other than life assurance business or PHI business comprised in BLAGAB or eligible PHI business (FA12/S166(1)).

If a friendly society converts to a company under FSA92/S91 and so ceases to be a registered friendly society and immediately before that time the society was exempt from corporation tax on profits arising from any “relevant other business� carried on by it under section FA12/S164 or FA12/S165, the company into which the society is converted is exempt from corporation tax on its profits arising from the “relevant other business� so far as relating to contracts made before that time (FA12/S166(3)).

In its computations, any part of a company’s business which is exempt from corporation tax as a result of FA12/S166 is to be treated as a separate business from any other business carried on by the company (FA12/S166(5)).

If the level of benefits on exempt relevant other business policies increases once in the company, the profits on these policies will cease to be exempt (FA12/S166(4)). However, this may not apply where those increases are built into these policies as part of pre-existing policy terms.

»Ê¹ÚÌåÓýapp Treasury may make regulations to provide that, where any part of the business of a company is exempt from corporation tax as a result of FA12/S166, the Corporation Tax Acts have effect subject to such exceptions or other modifications as they consider appropriate (FA12/S166(6)).

»Ê¹ÚÌåÓýapp regulations may have retrospective effect (FA12/S166(7)).

»Ê¹ÚÌåÓýapp regulations may make different provision for different cases or circumstances, and contain incidental, supplementary, consequential, transitional, transitory or saving provision. »Ê¹ÚÌåÓýapp regulations are included in Friendly Societies (Modifications of the Tax Acts) Regulations, SI2012/3008. »Ê¹ÚÌåÓýappse cover transitional provisions from the pre-FA12 regime.