Finance Act, 1993

Amendment of provisions relating to interest payments by certain deposit takers.

15.—(1) Chapter IV of Part I of the Finance Act, 1986 , is hereby amended—

(a) in subsection (1) of section 31—

(i) by the substitution of the following definition for the definition of “building society”:

“‘building society’ means a building society within the meaning of the Building Societies Act, 1989 , or a society established in accordance with the law of any other Member State of the European Economic Community which corresponds to that Act;”,

(ii) by the insertion, with effect as on and from the 3rd day of December, 1990, in paragraph (a) of the definition of “relevant deposit” of the following subparagraph after subparagraph (ia) (inserted by the Finance Act, 1991 ):

“(ib) the State acting through the National Treasury Management Agency,”,

(iii) in the definition of “relevant deposit taker”—

(I) by the substitution of the following paragraph for paragraph (a):

“(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Economic Community which corresponds to a licence granted under the said section 9,”,

and

(II) by the insertion, with effect as on and from the 30th day of October, 1992, of the following paragraph after paragraph (e):

“(ee) ICC Investment Bank Limited,”,

(b) in subsection (1) (as amended by the Finance Act, 1992 ) of section 35, by the substitution of the following paragraphs for paragraph (c):

“(c) the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and under no other Case or Schedule and shall be taken into account in computing the total income of the person entitled to that amount, but, in relation to such a person (being an individual)—

(i) except for the purposes of a claim to repayment under section 39 (2), the specified amount within the meaning of section 1 or 2 of the Finance Act, 1980 , and

(ii) the part of taxable income on which he is charged to income tax at the standard rate,

shall, as respects the year of assessment for which he is to be charged to income tax in respect of the relevant interest, be increased by the amount of that payment, and

(cc) section 4 of the Finance Act, 1974 , shall have effect as if a reference to appropriate tax deductible by virtue of this Chapter were contained in paragraph (a) of that section.”,

and

(c) in section 37A (inserted by the Finance Act, 1992 )—

(i) by the insertion, in subsection (1), of the following paragraph after paragraph (c):

“(cc) all moneys held in the account shall be subject to the same terms;”, and

(ii) by the substitution of the following subsection for subsection (4):

“(4) Section 35 shall apply and have effect in relation to any relevant interest paid in respect of any relevant deposit held in a special savings account as if the following paragraph were substituted for paragraph (c) of subsection (1):

‘(c) the amount of any payment of relevant interest (being relevant interest paid in respect of any relevant deposit held in a special savings account) shall not, except for the purposes of a claim to repayment under section 39 (2) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts,’.”.

(2) Subsection (4) of section 37A (inserted by the Finance Act, 1992 ) of the Finance Act, 1986 , shall apply and have effect in respect of any relevant interest paid in the period to the 5th day of April, 1993, in respect of any relevant deposit held in a special savings account as if, in paragraph (b), “and (e)” had not been enacted.