Part 6Exempt income
Chapter 2National savings income
F1691National Savings Bank ordinary account interest
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692Income from savings certificates
1
No liability to income tax arises in respect of income from authorised savings certificates.
2
A savings certificate is authorised so far as its acquisition was not prohibited by regulations made by the Treasury limiting a person's holding.
3
In this section “savings certificates” means—
a
savings certificates issued under—
i
section 12 of the National Loans Act 1968 (c. 13) (power of Treasury to borrow),
ii
section 7 of the National Debt Act 1958 (c. 6) (power of Treasury to issue national savings certificates), or
iii
section 59 of FA 1920 (power to borrow on national savings certificates),
b
war savings certificates, as defined in section 9(3) of the National Debt Act 1972 (c. 65), or
c
savings certificates issued under any enactment forming part of the law of Northern Ireland and corresponding to section 12 of the National Loans Act 1968.
4
But subsection (3)(c) does not include Ulster Savings Certificates (for which there are special rules in section 693).
693Income from Ulster Savings Certificates
1
No liability to income tax arises in respect of income from authorised Ulster Savings Certificates if condition A, B or C is met.
2
Condition A is that —
a
the holder purchased them, and
b
at the time of the purchase the holder was resident and ordinarily resident in Northern Ireland.
3
Condition B is that the holder is so resident and ordinarily resident when they are repaid.
4
Condition C is that—
a
they are repaid after the holder's death, and
b
at the time of the purchase the holder was so resident and ordinarily resident.
5
An Ulster Savings Certificate is authorised so far as its acquisition was not prohibited by regulations made by the Department of Finance and Personnel limiting a person's holding.
6
The exemption under this section requires a claim.
7
In this Act “Ulster Savings Certificates” means savings certificates issued or treated as issued under section 15 of the Exchequer and Financial Provisions Act (Northern Ireland) 1950 (c. 3 (N.I.)).