Section 498 — Corporation Tax Act 2009: Building society dividends and interest

Building society dividends and interest 498 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.