Taxes Consolidation Act 1997 section 848M

Taxation of gains

Section 848M sets out how gains arising in a special savings incentive account (SSIA) are taxed, including the rate of tax, the obligations of savings managers to pay and account for the tax, and the powers of inspectors to raise assessments where returns are incorrect or incomplete.

• Gains treated as accruing to an SSIA are liable to tax at 23 per cent, treated as income tax and referred to as "relevant tax".
• The savings manager may withdraw funds from the SSIA to meet the tax liability; where the account holds insufficient funds, the shortfall becomes a debt owed by the qualifying individual to the savings manager.
• An inspector may raise an assessment on the savings manager where a return is incomplete or unsatisfactory, and any tax so assessed is treated as having been payable at the time a correct return would have required payment.
• Interest accrues on unpaid relevant tax at a rate of 0.0322 per cent per day or part of a day, and the standard income tax provisions for assessment, appeal, collection and recovery apply.