Part 23Company distributions

Chapter 3Matters which are not distributions

Industrial and provident society payments

1055Industrial and provident societies: interest and share dividends

1

Interest paid by a registered industrial and provident 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 registered industrial and provident 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)).