Part 23Company distributions

Chapter 3Matters which are not distributions

Payments made by UK agricultural or fishing co-operatives

1057UK agricultural or fishing co-operatives: interest and share dividends

(1)

Interest paid by a UK agricultural or fishing co-operative in respect of a mortgage, loan, loan stock or deposit is not a distribution for corporation tax purposes.

(2)

If any dividend, bonus, interest or other sum—

(a)

is paid to a shareholder in a UK agricultural or fishing co-operative, and

(b)

is payable by reference to the amount of the shareholder's holding in the co-operative'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)).