Taxes Consolidation Act 1997 section 267B

Election to open a special share account or a special term share account

Section 267B sets out the procedure for credit union members or prospective members who wish to open special share accounts or special term share accounts, and provides that dividends on such accounts are subject to deposit interest retention tax (DIRT).

• A member or prospective member of a credit union may elect in writing to open a special share account and/or, where the member is an individual, a special term share account (which could be opened in the period 1 January 2002 to 15 October 2013).
• Where a special share account is opened, the credit union must designate it as such and treat the value of shares held in the account as a relevant deposit for DIRT purposes.
• Dividends paid on shares in either type of account are treated as relevant interest and are subject to DIRT at the appropriate rate (39% from 1 January 2017).
• Dividends on special term share accounts are subject to the exemptions provided for in section 267C.