Taxes Consolidation Act 1997 section 898E

Interest payment

Section 898E defines the term "interest payment" for the purposes of the EU Savings Directive provisions in this Chapter.

• "Interest payment" is defined very broadly to cover not only conventional interest but also building society and credit union distributions, redemption profits on securities, prizes on securities, and amounts referable to accrued or capitalised interest on the sale or redemption of a security.
• The definition extends to income distributed by, or realised on the sale or redemption of units in, certain UCITS and equivalent collective investment undertakings, where the underlying income derives from interest payments, subject to de minimis and Member State derogation exceptions.
• Where a paying agent lacks information about the proportion of income derived from interest, the full amount is treated as an interest payment; similarly, where the agent cannot determine the income realised on a sale or redemption, the full proceeds are treated as the income amount.
• Interest payments received by a residual entity that has not elected to be treated as a UCITS are deemed to be interest payments made by that residual entity at the time of receipt, subject to a 15 per cent de minimis threshold and Member State derogation exceptions.