Taxes Consolidation Act, 1997 (Number 39 of 1997)
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267C Taxation of dividends on special term share accounts.
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(1) The value of the dividend paid in a year of assessment on shares held in a medium term share account, shall be treated as an amount of relevant interest paid in that year of assessment, only to the extent that such value exceeds [2]>£278<[2]
[2]>€480<[2].
(2) The value of the dividend paid in a year of assessment on shares held in a long term share account, shall be treated as an amount of relevant interest paid in that year of assessment, only to the extent that such value exceeds [3]>[4]>£370<[3]<[4][3]>[4]>€635<[3]<[4].
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(1)The value of the dividend paid in a year of assessment on shares held in a medium term share account shall—
(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €480, and
(b) as respects the first €480 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.
(2) The value of the dividend paid in a year of assessment on shares held in a long term share account shall—
(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €635, and
(b) as respects the first €635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.
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(3) Where an account is opened by a member as a medium term share account, the member may subsequently make an election in writing to the credit union to have the account converted to a long term share account.
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(4) Where an election is made in accordance with subsection (3), the value of the dividend paid on shares in a year of assessment which commences on or after the date the election is made shall be treated as an amount of relevant interest paid for that year of assessment, only to the extent that such value exceeds [3]>[4]>£370<[3]<[4][3]>[4]>€635<[3]<[4].
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(4)Where an election is made in accordance with subsection (3), the value of the dividend paid on shares in a year of assessment which commences on or after the date the election is made shall—
(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €635, and
(b) as respects the first €635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.
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(5) An account shall cease to be a special term share account if any of the conditions specified in subsection (1) of section 267D cease to be satisfied, and where that occurs—
(a) the account shall be treated as a special share account from the time of the occurrence, and
(b) the value of all dividends (in this paragraph referred to as “past dividends”) paid prior to the occurrence, on shares held in the account, shall be treated by the credit union as an amount of relevant interest to the extent that the value of such dividends has not already been treated as an amount of relevant interest, and—
(i) the provisions of section 257(1) shall apply as if the payment of past dividends was being made on the date of the occurrence, and
(ii) where on that date the past dividends have already been withdrawn from the account—
(I) the credit union shall deduct from the value of the shares in the account on that date, an amount equal to the amount of the appropriate tax which would have been deducted from the past dividends under subparagraph (i), but for the withdrawal, and such amount shall be treated as appropriate tax, and
(II) the provisions of paragraphs (b) and (c) of section 257(1) shall apply to such deduction as they apply to a deduction from relevant interest.
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(6) An account shall cease to be a special term share account on a date which is—
(a) 3 years after the day on which the account was opened if the account is a medium term share account, or
(b)5 years after the day on which the account was opened if the account is a long term share account, including an account which was opened as a medium term share account but which was subsequently converted into a long term share account.
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Substituted by FA01 s57(1)(a)(vii)(I). Applies as respects the year of assessment 2002 and subsequent years of assessment. With effect from 1 January 2002 per SI 596 of 2001.
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Substituted by FA01 s57(1)(a)(vii)(II). Applies as respects the year of assessment 2002 and subsequent years of assessment. With effect from 1 January 2002 per SI 596 of 2001.
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Substituted by FA01 s57(1)(a)(vii)(II). Applies as respects the year of assessment 2002 and subsequent years of assessment. With effect from 1 January 2002 per SI 596 of 2001.
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Inserted by F(No.2)A13 s23(1)(g). Applies to interest or dividends (within the meaning of Part 8) paid on or after 1 January 2014.