Part 6Relationships treated as loan relationships etc
Chapter 4Building Societies
C1498Building society dividends and interest
1
This section deals with how building society dividends and interest are dealt with for corporation tax purposes.
2
Liability to pay building society interest or building society dividends is treated for the purposes of Part 5 as a liability arising under a loan relationship (so far as it would not otherwise be such a liability).
3
If building society interest or building society dividends are payable to a company, they are treated as so payable as the result of a right arising under a loan relationship of the company (so far as they would not otherwise be so payable).
4
Subsection (3) applies to interest paid under a certified SAYE savings arrangement with a building society as if it were a dividend on a share in the society.
5
In this section—
“building society dividends” means dividends payable in respect of shares in a building society,
“building society interest” means interest payable in respect of shares in, deposits with, or loans to, a building society,
“certified SAYE savings arrangement” has the meaning given by section 703 of ITTOIA 2005, and
“dividend” includes any distribution, however described.