Corporation Tax Act 2009 section 1282

Income from Ulster Savings Certificates

Section 1282 provides a corporation tax exemption for income from Ulster Savings Certificates held within specified limits, where the holder has a Northern Ireland connection.

• Income from authorised Ulster Savings Certificates is exempt from corporation tax if the holder was resident in Northern Ireland when the certificates were purchased, or is resident there when they are repaid.
• An Ulster Savings Certificate is only "authorised" to the extent that the holder's acquisition did not breach Department of Finance and Personnel regulations limiting how many certificates a person may hold.
• The exemption is not automatic — it must be actively claimed, typically through the corporation tax return.
• Although no new Ulster Savings Certificates have been issued since March 1997, the exemption remains relevant because some holdings have still not been redeemed and continue to generate interest.