An organisation is a friendly society if it’s registered under the Friendly Societies and Credit Unions Act 1982.
The net income to be shown in Box 12 is income from business transactions with people who aren’t members of the society, less all allowable expenses related to deriving the taxable income from non-members.
Any interest from investments that a friendly society earns is exempt income, providing it’s not part of the income from a business the society runs.
Where taxable activities cover both members and non-members, the income and expenses must be apportioned to calculate the taxable portion.
Print the net profit from the business carried on with non-members in Box 12. If the figure is a loss, put a minus sign in the last box.