Taxes Consolidation Act 1997 section 848J

Gain on maturity

Section 848J sets out how the gain on a special savings incentive account (SSIA) is calculated on maturity, and how earlier withdrawals from the account are treated for the purposes of that calculation.

• When an SSIA matures, a gain is treated as accruing on the account equal to the market value of all assets (including cash) held in it, less the total subscriptions made to the account (including those made by the qualifying savings manager).
• Subscriptions are reduced by any amounts previously treated as withdrawn subscriptions, so that only the net subscription balance is deducted from the maturity value.
• Where a withdrawal is made before maturity, it is treated as a withdrawal of subscriptions to the extent the amount withdrawn does not exceed the total subscriptions made since the account commenced, reduced by any subscriptions already treated as withdrawn.
• Where assets other than cash are withdrawn, the amount treated as withdrawn is the market value of those assets at the time of withdrawal.