Taxes Consolidation Act 1997 section 261A

Taxation of interest on special term accounts

Section 261A deals with deposit interest retention tax (DIRT) in relation to special term accounts, which were deposit accounts that could be opened in the period 1 January 2002 to 15 October 2013.

• For medium term accounts (3-year minimum), the first €480 of interest per year is exempt from DIRT; for long term accounts (5-year minimum), the first €635 is exempt.
• A medium term account may be converted to a long term account, with the higher €635 exemption applying from the next tax year onwards.
• If the conditions for special term status cease to be met, the account loses its special status and all interest, including previously exempt interest, becomes subject to DIRT.
• Medium term accounts automatically lose special term status after 3 years; long term accounts (including converted medium term accounts) lose it after 5 years.