Corporation Tax Act 2010 section 1054

Building society payments

Section 1054 ensures that interest, dividends or other distributions paid by a building society in respect of shares, deposits or loans are not treated as distributions for corporation tax purposes.

• The section applies to any interest, dividend or other distribution payable on shares in, deposits with, or loans to a building society.
• None of these payments counts as a distribution of the building society for corporation tax purposes.
• Instead, such payments are charged to corporation tax as interest income under section 498 of CTA 2009.
• For income tax purposes, building society dividends are treated as interest under section 372 of ITTOIA 2005.