Taxes Consolidation Act 1997 section 264

Conditions and declarations relating to special savings accounts

Section 264 sets out the conditions that had to be satisfied before an account could qualify as a special savings account (SSA), the declarations required from the account holder, and the tax treatment of interest earned on such accounts.

• A special savings account had to meet strict conditions covering designation, currency, connectivity with other accounts, withdrawal restrictions, balance limits, and account holder eligibility.
• The account holder had to make a written declaration to the financial institution confirming that the relevant conditions were satisfied and undertaking to notify the institution if they ceased to be met.
• Interest on a special savings account was subject to DIRT only and was not reckoned as part of total income for income tax purposes, except for the purposes of a repayment claim.
• If any of the conditions ceased to be satisfied, the account lost its special savings account status and normal DIRT rules applied from that date onwards.