Commentary

C1.217 Friendly societies

Capital gains tax
Capital gains tax | Commentary

C1.217 Friendly societies

Capital gains tax | Commentary

C1.217 Friendly societies

There is no statutory definition of a 'friendly society'. The general concept of a friendly society is that the membership contributes to a fund to be used for the welfare of the members or for their assistance when in need or distress. In this way, friendly societies are mutual associations for the purposes of insurance and annuities.1

Friendly societies, whether registered or unregistered, incorporated or unincorporated, are treated as companies under the definition of 'company' in CTA 2010, s 1121 (see C1.208)2. Therefore, if friendly societies are liable to tax on chargeable gains, they are liable to corporation tax3.

For a full discussion of friendly societies, see Division D7.6

Unregistered friendly societies

An unregistered friendly society is one that is not registered, calls itself a friendly society and provides welfare for its members4.

An unregistered and unincorporated friendly society whose income does not exceed £160 a year can claim an exemption from corporation tax on all its chargeable gains (and income)5.

Registered friendly societies

A registered friendly society is a society registered by the

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