Taxes Consolidation Act 1997 section 848H

Termination of special savings incentive account

Section 848H sets out when a special savings incentive account (SSIA) is treated as maturing or ceasing, how the remaining assets are dealt with for tax purposes, and the requirement for qualifying savings managers to issue a maturity statement on request.

• An SSIA matures on the fifth anniversary of the end of the month in which the first subscription was made (provided the required declaration has been made), or on the death of the qualifying individual if earlier.
• An SSIA is treated as ceasing if, before maturity, any of the account conditions are breached or the individual becomes neither resident nor ordinarily resident in the State.
• On maturity or cessation, the account loses its SSIA status for tax credit purposes, and the remaining assets (after tax) are treated as acquired by the individual at their then market value.
• Any income received on qualifying assets after maturity or cessation is treated as a cash withdrawal made before that event and taxed at the applicable exit tax rate by the qualifying savings manager.