Income Tax (Trading and Other Income) Act 2005

Chapter 4 U.K. SAYE interest

702 Interest under certified SAYE savings arrangements U.K.

(1) No liability to income tax arises in respect of interest payable under a certified SAYE savings arrangement.

(2) In this section “certified SAYE savings arrangement” has the meaning given in section 703(1).

(3) Subsection (1) is subject to—

(a) section 707(1) (which requires the providers of certain arrangements to be authorised), and

(b) paragraph 7 of Schedule 12 to FA 1988 (application of exemption on change of status of building society).

(4) In this Chapter “interest” includes any bonus.

703 Meaning of “certified SAYE savings arrangement” U.K.

(1) In this Chapter “certified SAYE savings arrangement” means a linked savings arrangement which is certified under section 705.

(2) In this Chapter “linked savings arrangement” means an arrangement—

(a) which is of a kind specified in section 704(1), and

(b) under which an individual who is eligible to participate in [F1 a Schedule 3] SAYE option scheme enters into a contract to make periodical contributions for a specified period for the purpose of being able to participate in that scheme.

(3) In subsection (2)—

• “to participate” means to obtain and exercise rights under the scheme, and

• [F2 “Schedule 3 SAYE option scheme” has the meaning given in Schedule 3 to ITEPA 2003.]

Textual Amendments

F1 Words in s. 703(2)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 141(2), 146 (with Sch. 8 paras. 147-157)

F2 Words in s. 703(3) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 141(3), 146 (with Sch. 8 paras. 147-157)

704 Types of arrangements and providers U.K.

(1) A linked savings arrangement may be—

(a) a national savings arrangement, or

(b) an institutional arrangement.

(2) In this Chapter “national savings arrangement” means an arrangement which—

(a) provides for contributions to be paid to raise money under section 12 of the National Loans Act 1968 (c. 13) (power of Treasury to borrow),

(b) is governed by regulations made under section 11 of the National Debt Act 1972 (c. 65) (power of Treasury to make regulations as to raising of money under auspices of Director of Savings), and

(c) provides for the repayment of those contributions, together with interest, in accordance with those regulations.

(3) In this Chapter “institutional arrangement” means—

(a) a bank arrangement, [F3 or]

(b) a building society arrangement F4 ...

F5 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this Chapter—

(a) “bank arrangement” means an arrangement which provides for contributions to be paid to a person within [F6 section 991(2)(b) of ITA 2007] (banks), and

(b) “provider”, in relation to such an arrangement, means that person.

(5) In this Chapter—

(a) “building society arrangement” means an arrangement which provides for contributions to be paid by way of investment in shares in a building society, and

(b) “provider”, in relation to such an arrangement, means that society.

F7 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Word in s. 704(3)(a) inserted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 13(5)(a)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F4 Word in s. 704(3)(b) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 13(5)(a)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F5 S. 704(3)(c) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 13(5)(a)(iii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in s. 704(4)(a) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 571 (with transitional provisions and savings in Sch. 2)

F7 S. 704(6) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 13(5)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

705 Certification of arrangements U.K.

(1) A linked savings arrangement is certified under this section if it is certified by the [F8 Commissioners] —

(a) as a linked savings arrangement, and

(b) in the case of an institutional arrangement, as meeting such requirements as the Treasury may specify for the purposes of this Chapter.

(2) The requirements which may be specified under subsection (1)(b) are such requirements as the [F9 Commissioners] consider appropriate.

(3) They may, in particular, relate to—

(a) the descriptions of individuals who may enter into contracts under an arrangement,

(b) the contributions to be paid by them, and

(c) the sums to be paid or repaid to them.

(4) Different requirements may be specified for—

(a) bank arrangements,

(b) building society arrangements, and

(c) European authorised institution arrangements.

[F10 (5) In this Chapter “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.]

Textual Amendments

F8 Word in s. 705(1) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 2(2)

F9 Word in s. 705(2) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 2(2)

F10 S. 705(5) inserted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 2(3)

706 Withdrawal and variation of certifications and connected requirements U.K.

(1) The [F11 Commissioners] may—

(a) withdraw the requirements specified under section 705(1)(b) for any description of arrangements and any certification made by reference to those requirements, or

(b) vary those requirements and withdraw any certification made by reference to them.

(2) The withdrawal, or variation and withdrawal, is only effective if the [F12 Commissioners] —

(a) specify the date on which it is to take effect, and

(b) give notice of it F13 ... at least [F14 15 days] before that date to the provider authorised under section 707 to enter into contracts under the arrangement concerned.

(3) The withdrawal, or variation and withdrawal, does not affect

[F15 (a) the operation of the arrangement concerned before that date,

(b) contracts made under that arrangement before that date, or

(c) where the notice so provides, contracts which are of a description specified in the notice and are made under that arrangement after that date.]

Textual Amendments

F11 Word in s. 706(1) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 3

F12 Word in s. 706(2) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 3

F13 Words in s. 706(2)(b) omitted (retrospective to 29.4.2009) by virtue of Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 6(a)

F14 Words in s. 706(2)(b) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 7

F15 S. 706(3)(a)(b)(c) substituted for words(retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 8

707 Authorisation of providers U.K.

(1) In the case of an institutional arrangement, section 702(1) (exemption of interest payable under certified SAYE savings arrangements) only applies if, at the time the contract under the arrangement is made, the provider is authorised by the [F16 Commissioners] to enter into contracts under it.

(2) If the authorisation is conditional, the conditions must be met at that time.

(3) Authorisation may be given for arrangements generally or a particular arrangement.

(4) More than one authorisation may be given to the same provider.

Textual Amendments

F16 Word in s. 707(1) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 4

708 Withdrawal and variation of authorisations U.K.

(1) The [F17 Commissioners] may withdraw the authorisation of a provider or vary it by imposing, varying or removing conditions.

(2) The withdrawal or variation is only effective if the [F18 Commissioners] —

(a) specify the date on which it is to take effect, and

(b) except in the case of a variation removing all conditions, give notice of it F19 ... to the provider at least 28 days before that date.

(3) The withdrawal or variation does not affect contracts made before that date.

(4) The fact that a provider has had its authorisation withdrawn or varied does not affect the later exercise by the [F20 Commissioners of their] powers under section 707 or this section as respects the provider.

Textual Amendments

F17 Word in s. 708(1) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 5(2)

F18 Word in s. 708(2) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 5(2)

F19 Words in s. 708(2)(b) omitted (retrospective to 29.4.2009) by virtue of Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 6(b)

F20 Words in s. 708(4) substituted (retrospective to 29.4.2009) by Finance Act 2009 (c. 10), s. 50(2), Sch. 26 para. 5(3)