Corporation Tax Act 2009 section 133

Annual payments paid by a credit union

Section 133 prevents credit unions from claiming a tax deduction for annual payments when calculating their trading profits.

• No deduction is allowed for annual payments made by a credit union when calculating its trading profits
• Most credit unions are not treated as carrying on a trade for tax purposes, but some activities may fall outside this general exemption
• Where a credit union does carry on a taxable trade, annual payments cannot reduce the profits of that trade
• The same rule applies where a credit union carries on a property business, as the trading income rules extend to property businesses