1. The Friendly Societies Act 1974 shall be amended in accordance with the following provisions of this Part of this Schedule.
2. For subsection (3) of section 7 (societies which may be registered) substitute—
"(3) A friendly society or branch thereof may not be registered under this Act—
(a) if it contracts with any person for the assurance under tax exempt life or endowment business of more than £104 a year by way of annuity or more than £500 by way of gross sum; or (b) if it contracts with any person for the assurance of an annuity or of a gross sum in excess of the limits in section 64 below.
(3A) In the case of a registered friendly society or branch whose rules make no provision for it to carry on life or endowment business consisting of the assurance of gross sums exceeding £1,000 or of the granting of annuities of annual amounts exceeding £208, subsection (3)(a) above shall have effect with the substitution of references to £208 and £1,000 respectively for the references to £104 and £500'.
3. In section 7, at the end add—
"(5) In this section 'life or endowment business' and 'tax exempt life or endowment business' have the meanings assigned to them by subsections (2) and (3) respectively of section 337 of the Income and Corporation Taxes Act 1970; and subsection
(2) of section 64 below shall apply in relation to the limits in subsection (3) above (including, where applicable, those limits as modified by subsection (3A) above) as it applies in relation to the limits in section 64 below.
4. In section 64(1) (maximum benefits), for the references to £500 and £104 in paragraphs ( a) and ( b) substitute references to £1,000 and £208 respectively.