Schedule 18
Finance Bill
6:00 pm
Kitty Ussher (Economic Secretary, HM Treasury; Burnley, Labour)
Government amendments Nos. 117 and 118 strengthen and revise the regulation-making powers governing the allocation of income gains, losses and expenses between taxable and tax-exempt businesses of friendly societies, so that those powers cover all circumstances in which an apportionment is required. Friendly societies are entitled to exemption from corporation tax on profits arising from life or endowment business and on profits from other business. Those exemptions are subject to statutory limits. Business written outside of those limits is taxable. To compute the taxable profits of a friendly society, it is necessary to apportion income gains, losses and expenses between taxable and tax-exempt business.