Part 3

Trading income
Chapter 9

Trade profits: other specific trades

Registered societies

Dividends etc granted by registered societies
132
1
This section applies if a trade is carried on by a registered society and—
a
the society does not sell to persons who are not its members, or
b
the number of shares in the society is not limited by the society's rules or practice.
2
In calculating the profits of the trade, a deduction is allowed for sums which meet conditions A and B.
3
Condition A is that—
a
the sum represents a discount, rebate, dividend or bonus granted by the society to a member or other person (“the recipient”),
b
the discount, rebate, dividend or bonus is in respect of—
i
amounts paid or payable by the recipient, or
ii
amounts paid or payable to the recipient,
on account of the recipient's transactions with the society, and
c
those transactions are taken into account in calculating the society's profits chargeable under this Part.
4
Condition B is that the sum mentioned in subsection (2) is calculated by reference to—
a
the amounts paid or payable by or to the recipient, or
b
the size of the transactions,
and not by reference to the amount of any share or interest in the capital of the society.
5
See also section 1056 of CTA 2010 (dividend or bonus to which this section applies is not treated as a distribution).
Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 141 (with Sch. 5)
Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 143 (with Sch. 5)
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)
Words in s. 132(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 598 (with Sch. 2)