267B Election to open a special share account or a special term share account.

(1) A person, who is a member or is about to become a member of a credit union, may either or both—

(a) make an election in writing to the credit union to open an account which is a special share account, and

(b) where the person is an individual, make an election in writing to the credit union to open either a medium term share account or a long term share account.

(2) Where an election is made in accordance with subsection (1)(a), the credit union shall designate the account as a special share account and shall treat—

(a) the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and

(b) the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by a credit union as they apply to relevant interest paid by a relevant deposit taker^[12]>, and the appropriate tax in respect of such relevant interest shall be at a rate of ^[2]>20 per cent^<[2][4]>[2]>23 per cent^{<[2]<[4][6]>[4]>}25 per cent^{<[4]<[6][8]>[6]>}27 per cent^{<[6]<[8][10]>[8]>}30 per cent^{<[8]<[10][10]>}33 per cent^<[10]<[12].

(3) Where an election is made in accordance with subsection (1)(b), the credit union shall treat—

(a) the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and

(b) subject to section 267C, the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by the credit union as they apply to relevant interest paid by a relevant deposit taker^[13]>, and the appropriate tax in respect of such relevant interest shall be at a rate of ^[3]>20 per cent^<[3][5]>[3]>23 per cent^{<[3]<[5][7]>[5]>}25 per cent^{<[5]<[7][9]>[7]>}27 per cent^{<[7]<[9][11]>[9]>}30 per cent^{<[9]<[11][11]>}33 per cent^<[11]<[13].