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)).
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)