Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 6 U.K. Exempt income

Chapter 2 U.K. National savings income

F1 691 National Savings Bank ordinary account interest U.K.

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Textual Amendments

F1 S. 691 repealed (19.7.2011) by Finance Act 2011 (c. 11), Sch. 26 para. 4

692 Income from savings certificates U.K.

(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).

693 Income from Ulster Savings Certificates U.K.

(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.)).