Finance Act, 1992

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Termination of relief in respect of certain transactions of agricultural and fishery societies.

48.—(1) (a) In this section—

“exempted transactions” has the meaning assigned to it by section 18 of the Finance Act, 1978 ;

“society” means a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, which is an agricultural society or a fishery society within the meaning of section 18 of the Finance Act, 1978 .

(b) For the purposes of this section—

(i) where an accounting period of a society begins before and ends after the 1st day of April, 1992, that period shall be divided into one part beginning on the day on which the accounting period begins and ending on the 31st day of March, 1992, and another part beginning on the 1st day of April, 1992, and ending on the day on which the accounting period ends, and both parts of the accounting period shall be treated as if they were separate accounting periods, and

(ii) the amount of trading income attributable to any transactions in an accounting period shall be taken to be the amount which bears to the full amount of the trading income of the period the same proportion as the aggregate of the amounts receivable by the society, by virtue of those transactions, from the sale of goods and the provision of services bears to the aggregate of all amounts received by the society, by virtue of transactions in the period, from the sale of goods and the provision of services.

(2) In the case of a trade carried on by a society—

(a) no transaction on or after the 1st day of April, 1992, shall be regarded as an exempted transaction for the purposes of section 18 of the Finance Act, 1978 , and

(b) sections 16 (1), 182 and 184 of the Corporation Tax Act, 1976 , shall apply to a society for accounting periods ending on or after the 1st day of April, 1992, as if—

(i) section 18 , other than subsection (9), of the Finance Act, 1978 , had not been enacted,

(ii) the society had made all such claims under the said sections 16 (1), 182 and 184 as it was entitled to make, and

(iii) such set-off of, or relief for, losses had been duly made in accordance with those claims:

Provided that—

(I) such part of the trading income of a society as is not income from the sale of goods (within the meaning of section 41 of the Finance Act, 1980 ) shall be reduced by so much of the said part as is attributable to transactions which would, but for this subsection, be exempted transactions as does not exceed—

(A) as respects accounting periods falling wholly or partly in the period commencing on the 1st day of April, 1992, and ending on the 31st day of December, 1992, two-thirds of the trading income so attributable, and

(B) as respects accounting periods falling wholly or partly in the year 1993, one-third of the trading income so attributable,

and

(II) paragraph (I) of this proviso shall not apply for the purposes of Chapter VI of Part I of the Finance Act, 1980 .

(3) For the purposes of subsection (2), where an accounting period falls partly in a year or period, the part of the accounting period falling into the year or period shall be regarded as a separate accounting period.