C1Part 23Company distributions
Chapter 3Matters which are not distributions
F2Registered society payments
Words 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)
1055F3Registered societies : interest and share dividends
1
Interest paid by a F1registered 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 F1registered 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)).
1056Dividend or bonus relating to transactions
1
This section applies if—
a
a dividend or bonus is granted by a F1registered 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.
Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)