Section 1055 | Registered societies : interest and share dividends
From legislation.gov.uk
(1)Interest paid by a registered society in respect of a mortgage, loan, loan stock or deposit is not a distribution for corporation tax purposes.F1
(2)If any dividend, bonus, interest or other sum—
(a)is paid to a shareholder in a registered society , andF1
(b)is payable by reference to the amount of the shareholder's holding in the society's share capital,
it is not a distribution for corporation tax purposes.
(3)Subsections (1) and (2) apply even if the amount in question would otherwise be a distribution by virtue of any enactment relating to corporation tax.
(4)For the purposes of this section crediting an amount counts as paying it.
(5)See also section 379(1) of ITTOIA 2005 (income tax treatment of sums payable as mentioned in subsection (2)).