Commentary on Sections Structure of Chapters Overview Section 372: Building society dividends
1513.This section treats building society dividends as interest. It is based on section 477A of ICTA.
1514.Subsection (1) provides that any building society dividend is to be treated as paid by way of interest for the purposes of this Act. See Change 80 in Annex 1. The wording “for the purposes of this Act” is necessary here since building society dividends are not treated as interest for all income tax purposes. They are treated as dividends for the purposes of deducting tax, by virtue of regulations made under section 477A(1) of ICTA (regulation 3(1) of the Income Tax (Building Societies) (Dividends and Interest) Regulations 1990 SI 1990/2231) or by virtue of section 349(3A) of ICTA.