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

Summary

This section provides that a member or a prospective member of a credit union may elect in writing to open

• a special share account
  and/or
• a special term share account (opened in the period 1 January 2002 to 15 October 2013).

The section provides that where such an election is made, the shares in the account are to be treated as relevant deposits for DIRT purposes and any dividends paid (or credited, by virtue of section 267A(2)) are, subject to the exemptions available in relation to dividends arising on special term share accounts, to be subject to DIRT at the appropriate rate (39% from 1 January 2017).

Details

Election to open special share accounts and special term share accounts

(1) A member or a prospective member of a credit union may either or both:

• elect in writing to the credit union to open a special share account, or
• where the member is an individual, elect in writing to the credit union to open a special term share account (which could be opened in the period 1 January 2002 to 15 October 2013).

(2) Where an election is made to open a special share account the credit union must designate the account as such, apply the DIRT provisions of Chapter 4 of this Part to the account and deduct the appropriate rate of DIRT (39% from 1 January 2017) from any dividends paid (or credited).

(3) Where an election was made to open a special term share account, the credit union designated the account as such, and applied the DIRT provisions of Chapter 4 of this Part to the account in addition to the exemptions provided for in section 267C.

Relevant Date: Finance Act 2021