Section 1057 — Corporation Tax Act 2010: UK agricultural or fishing co-operatives: interest and share dividends

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