264A Conditions and declarations relating to special term accounts.

(1) The following are the conditions referred to in subparagraph (i) of the definition of “special term account” in section 256(1):

(a) the account shall be opened and designated by the relevant deposit taker as a medium term account or, as the case may be, a long term account;

(b) the account shall not be denominated in a foreign currency;

(c) the account shall not be connected with any other account held by the account holder or any other person; and for this purpose an account shall be connected with another account if—

(i) (I) either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and

(II) the terms on which either account was opened would have been significantly less favourable to the account holder if the other account had not been opened,

or

(ii) the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;

(d) all relevant deposits held in the account shall be subject to the same terms;

(e) there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in or in respect of any period which is more than 12 months;

(f) interest paid or payable in respect of the relevant deposit or relevant deposits held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;

(g) the account shall not be opened by or held in the name of an individual who is under 16 years of age;

(h) the account shall be opened by and held in the name of the individual beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held in the account;

(i) the account may be held jointly by not more than 2 individuals;

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(j) subject to paragraph (k), an individual shall not simultaneously hold, whether solely or jointly, another special term account;

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(j) an individual shall not simultaneously hold whether solely or jointly—

(I) a special term share account, or

(II) subject to paragraph (k), another special term account;

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(k) where the account is held jointly by ^[6]>individuals who are married to each other^<[6][6]>individuals who are married to each other or who are civil partners of each other^<[6] they may simultaneously hold one other such account jointly;

(l) subject to paragraphs (m) and (n), the amount of a deposit or the aggregate amount of deposits which may be made to an account in any one month shall not exceed ^[2]>£500^{<[2] [2]>}€635^<[2];

(m) at the time an individual opens an account with a relevant deposit taker, a deposit consisting of all or part of the relevant deposits of the individual which are at that time held by the same relevant deposit taker, may be transferred to the account;

(n) otherwise than by way of a transfer under paragraph (m), a deposit of not more than ^[3]>£6,000^{<[3] [3]>}€7,620^<[3] may be made by an individual once and only once to an account during the period in which the account is a special term account;

(o) any interest credited to the account by the relevant deposit taker shall not be treated as a deposit for the purposes of paragraph (l) or (p), but such interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so credited;

(p) subject to paragraph (q), a deposit may not be withdrawn from an account held by an individual within—

(i) 3 years from the date the deposit was made, in the case of a medium term account, and

(ii) 5 years from the date the deposit was made, in the case of a long term account,

otherwise than on the death of the individual or, where the account is an account held jointly by 2 individuals, on the death of one of them;

(q) one and only one withdrawal may be made from an account by an individual who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the individual was under that age.

(2) The declaration referred to in subparagraph (ii) of the definition of “special term account” in section 256(1) shall be a declaration in writing to a relevant deposit taker which—

(a) is made by the individual (in this subsection referred to as “the declarer”) who holds the account in respect of which the declaration is made^[5]>is payable^<[5],

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,

(e) contains the full name and address of the declarer,

(f) contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3) Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.