Income and Corporation Taxes Act 1988

326 Interest etc. under contractual savings schemes. U.K.

M1 (1) Any terminal bonus, or interest or other sum, payable under a certified contractual savings scheme—

(a) in respect of money raised under section 12 of the M2 National Loans Act 1968, or

(b) in respect of shares in a building society, [F1 or

(c) in respect of money paid to an institution authorised under the M3 Banking Act 1987,]

shall [F2 not be regarded as income for any income tax purpose.]

(2) In this section “certified contractual savings scheme” means, except in relation to a building society [F3 or an institution authorised under the Banking Act 1987], a scheme—

(a) governed by regulations made under section [F4 11 of the M4 National Debt Act 1972]; and

(b) providing for periodical contributions by individuals for a specified period, and the repayment in accordance with the regulations of contributions together with any additional sum by way of bonus or interest, and

(c) certified by the Treasury as qualifying for exemption under this section.

(3) In this section “certified contractual savings scheme” means, in relation to a building society, a scheme—

(a) providing for periodical contributions by individuals for a specified period, being contributions by way of investment in shares in the building society, and

(b) certified by the Treasury as corresponding to a scheme certified under subsection (2) above, and as qualifying for exemption under this section.

[F5 (4) In this section “certified contractual savings scheme” means, in relation to an institution authorised under the Banking Act 1987, a scheme—

(a) providing for periodical contributions by individuals for a specific period, and

(b) certified by the Treasury as corresponding to a scheme certified under subsection (2) above, and as qualifying for exemption under this section.]

Textual Amendments

F1 1990 s.29(a).

F2 1990 s.29(b).Previously

“be disregarded for all purposes of the Income Tax Acts.”

F3 1990 s.29(c).

F4 1990 s.89and Sch.14 para.5 (correction of errors)—deemed always to have had effect. Previously

“12 of the National Debt Act 1958 or section 52 of the Finance Act 1969”.

F5 1990 s.29(d).

Modifications etc. (not altering text)

C1 See 1988(F) Sch.12 para.7—application of s.326to building society transfers.

Marginal Citations

M1 Source-1970 s.415(1)-(3), (5)

M2 1968 c. 13.

M3 1987 c. 22.

M4 1972 c. 65.