Textual Amendments
F1Words in s. 1055 cross-heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 165 (with Sch. 5)
(1)Interest paid by a [F3registered society] in respect of a mortgage, loan, loan stock or deposit is not a distribution for corporation tax purposes.
(2)If any dividend, bonus, interest or other sum—
(a)is paid to a shareholder in a [F3registered society] , and
(b)is payable by reference to the amount of the shareholder's holding in the society's share capital,
it is not a distribution for corporation tax purposes.
(3)Subsections (1) and (2) apply even if the amount in question would otherwise be a distribution by virtue of any enactment relating to corporation tax.
(4)For the purposes of this section crediting an amount counts as paying it.
(5)See also section 379(1) of ITTOIA 2005 (income tax treatment of sums payable as mentioned in subsection (2)).
Textual Amendments
F2Words in s. 1055 heading substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 166 (with Sch. 5)
F3Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), Sch. 4 para. 156 (with Sch. 5)
(1)This section applies if—
(a)a dividend or bonus is granted by a [F3registered society] , and
(b)section 132 of CTA 2009 (dividends etc relating to transactions with [F4a registered society]) allows the sum representing the dividend or bonus to be deducted in calculating the profits of a trade.
(2)The dividend, or the bonus, is not a distribution for the purposes of the Corporation Tax Acts.
Textual Amendments
F3Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), Sch. 4 para. 156 (with Sch. 5)
F4Words in s. 1056(1)(b) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 167 (with Sch. 5)