Section DV 10 — Income Tax Act 2007: Building societies

DV 10 Building societies Deduction (1) A building society is allowed a deduction for— (a) expenditure incurred on money borrowed by way of withdrawable shares: (b) interest and other financial charges incurred in providing money that is used to provide an interest-free loan to a person who holds a terminating share: (c) an amount incurred in purchasing a balloted loan right from a person who holds a terminating share. Timing of deduction (2) The deduction for the amount referred to in subsection (1)(c) is allocated to the income year in which the amount is paid. Meaning of balloted loan right (3) In this section, balloted loan right means a right arising from a ballot that— (a) is held by or for a building society; and (b) is of terminating shares; and (c) is held for the purpose of finding out which of the holders of the shares are entitled to receive an interest-free loan relating to their shares. Link with subpart DA (4) This section overrides the capital limitation. The general permission must still be satisfied and other general limitations still apply. Defined in this Act: amount , balloted loan right , building society , capital limitation , deduction , general limitation , general permission , income year , pay , terminating share , withdrawable share , Compare: 2004 No 35 s DV 10