Section 159 | Exception in case of breach of maximum benefits payable to members

(1)The exemption from corporation tax afforded by section 153, 156(3) or (5) or 158 does not apply in relation to so much of the profits arising to a friendly society or insurance company from any business as is attributable to a policy which—

(a)is not a qualifying policy as a result of sub-paragraph (2) of paragraph 6 of Schedule 15 to ICTA and is not an excluded policy, and

(b)would not be a qualifying policy as a result of that sub-paragraph if all excluded policies were ignored.

(2)A policy is an excluded policy if—

(a)it is held otherwise than with the friendly society or insurance company, or

(b)the person who has the contract effecting the policy acquired the rights under it on an assignment otherwise than for money or money's worth.

(3)This section does not withdraw the exemption from corporation tax afforded by section 153, 156(3) or (5) or 158 in relation to profits arising from any part of a business relating to contracts made on or before 3 May 1966.