Corporation Tax Act 2010 section 1057

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

Section 1057 ensures that certain payments made by UK agricultural or fishing co-operatives to their members and lenders are not treated as distributions for corporation tax purposes.

• Interest paid by a UK agricultural or fishing co-operative on mortgages, loans, loan stock or deposits is not a distribution for corporation tax purposes.
• Dividends, bonuses, interest or other sums paid to shareholders by reference to their shareholding in the co-operative are also excluded from being treated as distributions.
• These exclusions apply even where the payments would otherwise be classified as distributions under any other corporation tax legislation.
• Crediting an amount to a member's account is treated the same as paying it for the purposes of these rules.