[SAIM2200] SAIM2200 – Interest: specific inclusions: introduction
Amounts that are treated as interest
Certain income receipts are treated as interest for tax purposes, even though they may not constitute interest in a legal sense. Some of these are listed in ITTOIA05/S369. This list is not exhaustive, as other particular receipts are treated as interest by other parts of the Tax Acts.
Building society dividends
Investors holding certain types of building society account (usually called share accounts) are members of the society and receive what are technically dividends. These are taxed as interest ‘for the purposes of this Act’ (ITTOIA05/S372).