Income Tax (Trading and Other Income) Act 2005 section 372

Building society dividends

Section 372 establishes how dividends paid by building societies are treated for income tax purposes under this Act.

• Any dividend paid by a building society is treated as interest for the purposes of this Act
• The term "dividend" is broadly defined to include any distribution, whether or not it is actually called a dividend
• This treatment applies only for the purposes of this Act, not for all income tax purposes — for example, different rules apply when it comes to the deduction of tax at source
• For tax deduction purposes, building society dividends continue to be treated as dividends under separate regulations and provisions