Corporation Tax Act 2009 section 132

Dividends etc. granted by industrial and provident societies

Section 132 allows registered industrial and provident societies to claim a trading deduction for dividends and similar payments made to members based on their trading transactions with the society.

• Applies to registered industrial and provident societies that either do not sell to non-members or do not limit the number of shares in the society
• Allows a deduction for discounts, rebates, dividends or bonuses granted to members or others in respect of their transactions with the society
• The payment must be calculated by reference to amounts paid or payable, or the size of transactions, and not by reference to the recipient's shareholding in the society
• A qualifying dividend or bonus under this section is not treated as a distribution for corporation tax purposes