Commentary

D7.824 Payments out of reserves

Corporate tax
Corporate tax | Commentary

D7.824 Payments out of reserves

Corporate tax | Commentary

D7.824 Payments out of reserves

Where a bonus is paid out of reserves (eg to the investors of a society when it ceases business on a merger), the full amount of the bonus, together with the income tax applicable thereto, is allowable in the computation of the society which bears the expense.

A bonus paid as compensation to members not eligible to vote on a conversion proposal, by a society which transfers its business to a company in accordance with the Building Societies Act 1986, s 97 (or by the company to which the business is transferred), is not

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