Income Tax Act 2007 section 985

Meaning of "qualifying certificate of deposit"

Section 985 defines what constitutes a "qualifying certificate of deposit" for the purposes of determining whether interest on certain deposits can be paid without deduction of income tax at source.

• A qualifying certificate of deposit must have a repayable amount of at least £50,000, exclusive of any interest.
• The repayable amount must fall due at a single specified date within five years of the deposit being made.
• Where the deposit is denominated in a foreign currency, the £50,000 threshold is tested by reference to the exchange rate at the time the deposit is made.
• Interest or dividends paid by a deposit-taker or building society on a deposit covered by a qualifying certificate of deposit may be paid gross, without deduction of tax at source.