Part 23Company distributions
Chapter 3Matters which are not distributions
Payments made by UK agricultural or fishing co-operatives
1057UK agricultural or fishing co-operatives: interest and share dividends
1
Interest paid by a UK agricultural or fishing co-operative 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 UK agricultural or fishing co-operative, and
b
is payable by reference to the amount of the shareholder's holding in the co-operative'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)).