LAM17180 | Relevant other business - withdrawal of qualifying status: FA12/S168

FA12/S168 authorises HMRC Commissioners to give directions that a friendly society ceases to be a qualifying society from the date of the direction. Such a direction may be given to:

• a registered friendly society which is a qualifying society for the purposes of FA12/S164 as a result of its registration before 1 June 1973, or

• an incorporated friendly society which is a qualifying society for the purposes of FA12/S165 as a result of falling within case A or C and whose business and rules are not of a kind mentioned in section FA12/S164(2)(b) or (c).

Where:

(a) the society begins to carry on relevant other business or, in the opinion of the Commissioners, begins to carry on relevant other business on an enlarged scale or of a new character, and

(b) it appears to them, having regard to the restrictions imposed by section 164 on registered friendly societies registered on or after 1 June 1973, that for the protection of the revenue it is expedient to give the direction.

The society may appeal against the Commissioners’ direction (FA12/S168(3)) within 30 days (FA12/S168(5)) on the grounds that:

(a) it has not begun to carry on relevant other business, or carry it on on an enlarged scale or of a new character (FA12/S168(4)(a)), or

(b) the direction is not necessary for the protection of the revenue (FA12/S168(4)(b)).

Prior to issuing any direction, agreement must be sought from HMRC’s Business, Assets, and International – Financial Services Team to proceed.