Income Tax (Trading and Other Income) Act 2005 section 92–93

Transactions in deposits

Sections 92 and 93 provide transitional rules that limit the scope of the income tax charge on profits from disposing of deposit rights, based on when the rights were acquired or when the underlying arrangements were made.

• Profits from disposing of deposit rights are not subject to income tax under Section 551 if the rights were acquired before 7 March 1973.
• Special rules apply to "uncertificated rights" — that is, rights arising under arrangements made on or before 16 July 1992 where there is also a right to call for the issue of a certificate of deposit.
• Where those special rules apply, certain provisions of Section 552 (specifically subsection (1)(c) and (d)(i)) are disapplied when determining how the transactions in deposits rules operate.
• These transitional provisions preserve the tax treatment that existed before the consolidation of the legislation into ITTOIA 2005, ensuring taxpayers with older arrangements are not brought into a wider charge.