Corporation Tax Act 2010 section 1055

Registered societies: interest and share dividends

Section 1055 confirms that certain payments made by registered societies (formerly known as industrial and provident societies) to their members are not treated as distributions for corporation tax purposes.

• Interest paid by a registered society on mortgages, loans, loan stock or deposits is not a distribution for corporation tax purposes.
• Dividends, bonuses, interest or other sums paid to shareholders by reference to their shareholding in the society are also excluded from being distributions.
• These exclusions apply even where the payments would otherwise be treated as distributions under any other corporation tax legislation.
• Crediting an amount to a member's account counts as paying it for the purposes of this section.