Section 1055 Registered societies : interest and share dividendsF2

(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 registered 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)).

Annotations

Textual amendments

F1: Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), Sch. 4 para. 156 (with Sch. 5)
F2: Words 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)

Notes on Part 23

Modifications

C1: 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)

Notes on Registered society payments

Textual amendments

F1: 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)