Taxes Consolidation Act 1997 section 519C

Interest, etc under certified contractual savings schemes

Section 519C exempts from income tax and DIRT any terminal bonus or interest paid to an individual by a qualifying savings institution under a certified contractual savings scheme linked to a savings-related share option scheme.

• Any terminal bonus or interest paid to an individual under a certified contractual savings scheme is exempt from income tax and excluded from total income, and where the savings institution is a relevant deposit taker it is also exempt from DIRT.
• A certified contractual savings scheme is one under which individuals make periodical contributions to a qualifying savings institution, those individuals are eligible to participate in an approved savings-related share option scheme, and the scheme is certified by Revenue as meeting the requirements set out in Schedule 12B.
• Qualifying savings institutions include licensed banks (including EEA-licensed equivalents), building societies, trustee savings banks, the Post Office Savings Bank, credit unions, and any other person prescribed by the Minister for Finance.
• The exemption applies to terminal bonuses or interest paid on or after 6 April 1999, and Schedule 12B contains supplementary provisions governing the operation of the scheme.