Section 887 — Income Tax Act 2007: Payments made by registered societies

Payments made by registered societies 887 1 The duty to deduct a sum representing income tax under section 874 does not apply to either of the following payments if they are payable to a person whose usual place of abode is in the United Kingdom—

a a payment of interest made by a registered society in respect of any mortgage, loan, loan stock or deposit, or b any interest, dividend, bonus or other sum payable to a shareholder of such a society by reference to the amount of the shareholder's holding in the share capital of the society.

2 A registered society must, within 3 months after the end of each of its accounting periods, deliver to an officer of Revenue and Customs a return containing the information mentioned in subsection (3).

3 That information is—

a the name and place of residence of every person to whom the society has, as a result of this section, made one or more payments in the period amounting in total to at least £15 without deducting a sum (or sums) representing income tax, and b the amount so paid in the period to each of those persons.

4 See section 500(2) of CTA 2009 as to the consequences of not making a return as required by subsection (2).

5 In this Chapter “registered society” means—

a a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, b a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969. c a society registered as a credit union under the Credit Unions (Northern Ireland) Order 1985 ( S.I. 1985/1205 (N.I. 12)), or d an SCE formed in accordance with Council Regulation ( EC ) No 1435/2003 on the Statute for a European Cooperative Society.

6 For the purposes of this section crediting interest (or amounts treated as interest) counts as paying it.