Taxes Consolidation Act, 1997 (Number 39 of 1997)
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Chapter 7
Certain interest from sources [3]>
within the European Communities<[3]
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outside the State<[3]
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within the European Communities<[3]
267M Tax rate applicable to certain deposit interest received by individuals.
(1) In this section—
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“foreign deposit interest” means interest arising in a foreign territory which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if—
(a) paragraphs (c), (d) and (g) of the definition of ‘relevant deposit’ in section 256(1) were deleted, and
(b) there were included in the definition of “relevant deposit taker” in section 256(1), bodies—
(i) established in accordance with the law of a foreign territory, and
(ii) authorised under the laws of that foreign territory to accept deposits of money;
“foreign territory” means a territory other than a Member State of the European Communities;”,
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“specified interest” means interest arising in a Member State of the European Communities other than the State which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if—
(a) in the definition of “relevant deposit” in section 256(1)—
(i) the following were substituted for paragraphs (c) and (d):
“(c) which, in the case of a relevant deposit taker which, by virtue of the law of a Member State of the European Communities other than the State, is resident for the purposes of tax in such a Member State, is held at a branch of the relevant deposit taker situated in a territory which is not a Member State,
(d) which, in the case of a relevant deposit taker not so resident in a Member State of the European Communities for the purposes of tax, is held otherwise than at a branch of the relevant deposit taker situated in a Member State,”,
and
(ii) paragraph (g) were deleted,
and
(b) there were included in the definition of “relevant deposit taker” in section 256(1) bodies established in accordance with the law of any Member State of the European Communities other than the State which corresponds to—
(i) the Credit Union Act 1997,
(ii) the Trustee Savings Banks Acts 1989 and 2001, or
(iii) the Post Office Savings Bank Acts 1861 to 1958;
“tax” in relation to a Member State other than the State means tax which corresponds to income tax or corporation tax in the State.
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(2) (a) Notwithstanding any provision of the Income Tax Acts and subject to paragraph (b), the amount of taxable income on which a person who is an individual is charged to income tax at the standard rate for any year shall be increased by an amount equal to the amount of specified interest of that person on which income tax for that year falls to be computed.
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(2) (a) Notwithstanding section 15 and subject to paragraph (b), where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in paragraph (b) of the definition of “appropriate tax” in subsection 256(1).
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(b) Paragraph (a) shall not apply where any liability of the individual for a year of assessment in respect of the specified interest has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 950) for that year.
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(2) (a) Notwithstanding section 15[9]> and subject to paragraph (b)<[9], where the taxable income of an individual includes—
(i) specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in [7]>paragraph (b) of<[7] the definition of “appropriate tax” in section 256(1), or
(ii) foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in [8]>paragraph (b) of<[8] the definition of “appropriate tax” in section 256(1).
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(b) Paragraph (a) shall not apply where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of [6]>section 950<[6][6]>section 959A<[6]) for that year, and where that paragraph does not apply, the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.
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(2)(a) Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes—
(i)specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in the definition of “appropriate tax” in section 256(1), or
(ii)foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in the definition of “appropriate tax” in section 256(1).
(aa) Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.
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Substituted by FA05 s20(1). This section applies for the year of assessment 2005 and subsequent years of assessment.
[2]
Substituted by F(No.2)A08 s26(1)(e). Applies for the year of assessment 2009 and subsequent years of assessment.
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Substituted by FA12 s36(1)(f). Applies to foreign deposit interest or specified interest (both within the meaning of section 267M(1) (as amended by subsection (1)(g))), as the case may be, which is received on or after 8 February 2012.
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Inserted by FA12 s36(1)(g). Applies to foreign deposit interest or specified interest (both within the meaning of section 267M(1) (as amended by subsection (1)(g))), as the case may be, which is received on or after 8 February 2012.
[5]
Substituted by FA12 s36(1)(h). Applies to foreign deposit interest or specified interest (both within the meaning of section 267M(1) (as amended by subsection (1)(g))), as the case may be, which is received on or after 8 February 2012.
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Deleted by F(No.2)A13 s23(1)(h). Applies to interest or dividends (within the meaning of Part 8) paid on or after 1 January 2014.
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Deleted by F(No.2)A13 s23(1)(h). Applies to interest or dividends (within the meaning of Part 8) paid on or after 1 January 2014.