Section 379: Industrial and provident society payments
1527.This section provides that share interest from industrial and provident societies is treated as interest. It is based on section 486 of ICTA.
1528.Section 486(4) of ICTA provides that share or loan interest is chargeable under Schedule D Case III. The definition of “share interest” in section 486 of ICTA is “any interest, dividend, bonus or other sum….”. This section treats the dividend, bonus and other sums as interest. See Change 81 in Annex 1.
1529.Subsections (2) to (5) are definition subsections. The reference to “the Department of Agriculture for Northern Ireland” in section 486(12) of ICTA is rewritten in subsection (5) as the “the Department of Agriculture and Rural Development”, its current title.
1530.The closing words of section 486(12) of ICTA (“and references to the payment of share interest or loan interest include references to the crediting of such interest”) are not rewritten. They are relevant to the rules within that section on the deduction of tax rather than the charge.