Corporation Tax Act 2009 section 498

Building society dividends and interest

Section 498 explains how building society dividends and interest are brought within the loan relationship rules for corporation tax purposes.

• Building society dividends and interest are treated as liabilities arising under a loan relationship for corporation tax purposes
• Where a company receives building society dividends or interest, these are treated as income from a loan relationship of that company
• Interest paid under a certified SAYE savings arrangement with a building society is treated in the same way as a dividend on a share in the society
• Key definitions cover building society dividends, building society interest, certified SAYE savings arrangements, and dividends (which include any distribution however described)