Part 1Transfer of balances in dormant accounts
Interpretation etc
I110“Dormant”
1
An account is “dormant” at a particular time if—
a
the account has been open throughout the period of 15 years ending at that time, but
b
during that period no transactions have been carried out in relation to the account by or on the instructions of the holder of the account.
2
But an account is to be treated as not dormant if at any time during that period—
a
the bank or building society in question was under instructions from the holder of the account not to communicate with that person about the account, or
b
under the terms of the account—
i
withdrawals were prevented, or
ii
there was a penalty or other disincentive for making withdrawals in all circumstances.
3
For the purposes of subsection (1) an account is to be treated as remaining open where it is closed otherwise than on the instructions of the holder of the account.
4
For the purposes of subsection (2)(b)(i) withdrawals are prevented if they are prevented except as permitted by provision made under subsection (4)(d) of section 3 of the Child Trust Funds Act 2004 (c. 6) (requirements to be satisfied by child trust funds).
5
The Treasury may by order amend the figure in subsection (1)(a).
6
An order under this section may not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.