Correction Slip 1

Schedule 18 to the Finance Act 2008 amends Chapter 2 of Part 12 of the Income and Corporation Tax Act 1988 (friendly societies etc) in relation to transfers of business, other than life or endowment business, between friendly societies. The amendments will permit friendly societies to carry on two types of business: business the profits arising from which are exempt from corporation tax and business the profits arising from which are not exempt from corporation tax. These Regulations modify provisions in primary legislation to provide for the apportionment of the income, gains, losses, expenses and capital allowances of the society as a whole between these two types of business and ensure that payments made following a transfer are not treated as qualifying distributions if they would not have been so treated if made by the transferor society.