(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.
(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 an approved 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
“SAYE option scheme” has the meaning given by section 516(4) of ITEPA 2003, and such a scheme is “approved” if it is approved under Schedule 3 to ITEPA 2003.
(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,
(b)a building society arrangement, or
(c)a European authorised institution arrangement.
(4)In this Chapter—
(a)“bank arrangement” means an arrangement which provides for contributions to be paid to a person within section 840A(1)(b) of ICTA (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.
(6)In this Chapter—
“European authorised institution” means an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to FISMA 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits,
“European authorised institution arrangement” means an arrangement which provides for contributions to be paid to such a firm, and
“provider”, in relation to such an arrangement, means that firm.
(1)A linked savings arrangement is certified under this section if it is certified by the Treasury—
(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 Treasury 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.
(1)The Treasury 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 Treasury—
(a)specify the date on which it is to take effect, and
(b)give notice of it by post at least 28 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 the operation of the arrangement concerned before that date or contracts made under that arrangement before it.
(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 Treasury 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.
(1)The Treasury 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 Treasury—
(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 by post 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 Treasury of its powers under section 707 or this section as respects the provider.