(1)M1For the purposes of sections F1. . . 481 and this section, any amount which is credited as interest in respect of a relevant deposit shall be treated as a payment of interest.
(2)M2A declaration under section 481(5)(k) shall—
[F2(a)if made under sub-paragraph (i) or (iii), contain an undertaking by the person making it that where—
(i)the individual or any of the individuals in respect of whom it is made becomes ordinarily resident in the United Kingdom,
(ii)the trustees or any company in respect of whom it is made become or becomes resident in the United Kingdom, or
(iii)an individual who is ordinarily resident in the United Kingdom or a company which is resident in the United Kingdom becomes or is found to be a beneficiary of a trust to which the declaration relates,
the person giving the undertaking will notify the deposit-taker accordingly; and]
(b)in any case, be in such form as may be prescribed or authorised, and contain such information as may reasonably be required, by the Board.
[F3(2A)A declaration under section 481(5)(k)(i) must contain—
(a)in a case falling within section 481(4)(a), the name and principal residential address of the individual who is beneficially entitled to the interest or, where two or more individuals are so entitled, of each of them;
(b)in a case falling within section 481(4)(b), the name and principal residential address of each of the partners.]
(3)M3A deposit-taker shall, on being so required by notice given to him by an inspector, make all declarations which have been made to him under section 481(5) available for inspection by the inspector or by a named officer of the Board.
(4)Where a notice has been given to a deposit-taker under subsection (3) above, the declarations shall be made available within such time as may be specified in the notice, and the person to whom they are to be made available may take copies of or extracts from them.
(5)A deposit-taker shall treat every deposit made with him as a relevant deposit unless satisfied that it is not a relevant deposit, but where he has satisfied himself that a deposit is not a relevant deposit he shall be entitled to continue to so treat it until such time as he is in possession of information which can reasonably be taken to indicate that the deposit is or may be a relevant deposit.
[F4(5A)The persons who are to be taken for the purposes of section 481(5)(k)(iii) and subsection (2) above to be the beneficiaries of a discretionary or accumulation trust shall be every person who, as a person falling wholly or partly within any description of actual or potential beneficiaries, is either—
(a)a person who is, or will or may become, entitled under the trust to receive the whole or any part of any income under the trust; or
(b)a person to or for the benefit of whom the whole or any part of any such income may be paid or applied in exercise of any discretion conferred by the trust;
and for the purposes of this subsection references, in relation to a trust, to income under the trust shall include references to so much (if any) of any property falling to be treated as capital under the trust as represents amounts originally received by the trustees as income.]
(6)In section 481(5) [F5and (5A)]—
“appropriate person”, in relation to a deposit, means any person who is beneficially entitled to any interest in respect of the deposit or entitled to receive any such interest [F6 in his capacity as a personal representative or as a trustee of a discretionary or accumulation trust] or to whom any such interest is payable;
[F7“certificate of deposit” for corporation tax purposes has the meaning given in section 56(5) above and for income tax purposes has the meaning given in section 552(2) of ITTOIA 2005,]
“general client account deposit” means a deposit, held by the deposit-taker in a client account (other than one which is identified by the deposit-taker as one in which sums are held only for one or more particular clients of the person whose account it is) in respect of which that person is required by provision made under any enactment to make payments representing interest to some or all of the clients for whom, or on whose account, he received the sums deposited in the account;
“qualifying certificate of deposit” means a certificate of deposit [F8or uncertificated eligible debt security units, being a certificate or units] issued by a deposit-taker and under which—
the amount payable by the deposit-taker, exclusive of interest, is not less than £50,000 (or, for a deposit denominated in foreign currency, not less than the equivalent of £50,000 at the time when the deposit is made); and
the obligation of the deposit-taker to pay that amount arises after a period of not less than seven days beginning with the date on which the deposit is made; and
“qualifying time deposit” means a deposit which is made by way of loan for an amount which is not less than £50,000 (or, for a deposit denominated in foreign currency, not less than the equivalent of £50,000 at the time when the deposit is made) and on terms which—
prevent repayment of the deposit before the expiry of the period of seven days beginning with the date on which the deposit is made, but which require repayment at the end of a specified period;
do not make provision for the transfer of the right to repayment; and
prevent partial withdrawals of, or additions to, the deposit.
[F9“uncertificated eligible debt security units” has the meaning given in section 552(2) of ITTOIA 2005]
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)For the purposes of section 481(5)(h) and (j) a deposit is held at a branch of a deposit-taker if it is recorded in his books as a liability of that branch.
(8)M4A certificate of deposit, as defined in [F11subsection (6) above], which was issued before 13th March 1984 on terms which provide for interest to be payable on the deposit at any time after 5th April 1985 (whether or not interest is payable on it before that date) shall, if it is not a qualifying certificate of deposit, be treated for the purposes of section 481(5) as if it were a qualifying certificate of deposit.
(9)M5Any deposit which was made before 6th July 1984 but which is not a qualifying time deposit shall, where it is made on terms which—
(a)do not make provision for the transfer of the right to repayment;
(b)prevent partial withdrawals of, or additions to, the deposit; and
(c)require—
(i)the deposit-taker to repay the sum at the end of a specified period which ends after 5th April 1985; or
(ii)in a case where interest is payable only at the time of repayment of the deposit, the deposit-taker to repay the sum on demand or on notice;
be treated for the purposes of section 481(5) as if it were a qualifying time deposit.
(10)A M6n order under section 481(2)(f) may prescribe a person or class of person in relation to all relevant deposits or only in relation to relevant deposits of a kind specified in the order.
(11)The Board may by regulations make provision—
(a)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F13(aa)with respect to the furnishing of information by depositors or deposit-takers, including, in the case of deposit-takers, the inspection of books, documents and other records on behalf of the Board; and]
[F14(ab)with respect to—
(i)the manner and form in which a notification for the purposes of section 481(5B) is to be given or may be withdrawn, and
(ii)the circumstances in which the deposit-taker is to be entitled to delay acting on such a notification,
and]
(b)generally for giving effect to sections 479 to 481 and this section.
[F15(11A)In subsection (11)(aa) above the reference to depositors is to persons who are appropriate persons (within the meaning given by subsection (6) above) in relation to deposits.]
(12)M7Regulations under subsection (11) above or an order under section 481(6) may contain such incidental and consequential provision as appears to the Board or the Treasury, as the case may be, to be appropriate.
Textual Amendments
F1Words in s. 482(1) repealed by Finance Act 1990 (c. 29), Sch. 19 Part IV, Note 8
F2S. 482(2)(a) substituted (with effect in accordance with s. 86(10) of the amending Act) by Finance Act 1995 (c. 4), s. 86(5) (with s. 86(14))
F3S. 482(2A) inserted (with effect in accordance with s. 111(6)(c) of the amending Act) by Finance Act 2000 (c. 17), s. 111(3)(a)
F4S. 482(5A) inserted (with effect in accordance with s. 86(10) of the amending Act) by Finance Act 1995 (c. 4), s. 86(6) (with s. 86(14))
F5Words in s. 482(6) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 187(2)(a) (with Sch. 2)
F6Words in s. 482(6) substituted (with effect in accordance with s. 86(10) of the amending Act) by Finance Act 1995 (c. 4), s. 86(7) (with s. 86(14))
F7S. 482(6): definition of "certificate of deposit" inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 187(2)(b) (with Sch. 2)
F8S. 482(6): words in definition of "qualifying certificate of deposit" substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 187(2)(c) (with Sch. 2)
F9S. 482(6): definition of "uncertificated eligible debt security units" inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 187(2)(d) (with Sch. 2)
F10Words in s. 482(6) repealed by Finance Act 1990 (c. 29), Sch. 19 Part IV, Note 8
F11Words in s. 482(8) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 187(3) (with Sch. 2)
F12S. 482(11)(a) repealed (with effect in accordance with s. 111(6)(c) of the repealing Act) by Finance Act 2000 (c. 17), s. 111(3)(b), Sch. 40 Pt. 2(17), Note 3
F131990 s. 30 and Sch. 5 para. 9(4)
F14S. 482(11)(ab) inserted (with effect in accordance with s. 86(10) of the amending Act) by Finance Act 1995 (c. 4), s. 86(8) (with s. 86(14))
F151990 s. 30 and Sch.5 para.9(5)
Modifications etc. (not altering text)
C1Ss. 480A-482 modified (with effect in accordance with s. 56 of the modifying Act) by Finance Act 2005 (c. 7), Sch. 2 para. 6
C2See 1990 s. 30 and Sch. 5 para. 9(2)(6)— words "less than seven days"
replaced by "more than 5 years" as regards interest paid or credited on or after 6 April 1991
C3See 1990 s. 30 and Sch. 5 para. 9(3)(6)— sub (a) replaced by the following as regards interest paid or credited on or after 6 April1991:— "(a) require repayment of the deposit at a specified time falling before the end of the period of five years beginning with the date on which the deposit is made;"
Marginal Citations
M1Source—1984 Sch. 8 1(2)
M2Source—1984 Sch.8 3(4), (4A); 1985 s.38(5)
M3Source—1984 Sch.8 3(5)-(9); 1985 s.38(6); 1986 No.771
M4Source—1984 Sch.8 6(2)
M5Source—1984 Sch.8 6(3)
M6Source—1984 Sch.8 2(2); 1985 s.38(2)
M7Source—1984 Sch.8 3A(3); 1985 s.38(7)