A4.406 'Relevant investments'—general
An 'investment', for the purposes of ITA 2007, ss 850–873 (Pt 15, Ch 2) (and, with effect from 2016/17, ITA 2007, s 876 (yearly interest paid by deposit takers), means a deposit with a deposit-taker (or prior to 2016/17, a building society), shares in a building society, or a loan to a building society1. A 'deposit' means a sum of money paid on terms which mean that it will be repaid (with or without interest) on demand, or at a time in circumstances agreed by or on behalf of the payer and recipient2.
For an investment to be a 'relevant investment'3, it must meet one of the following four conditions:
(a) the individual interest condition; ie that the only persons beneficially entitled to the interest are individuals (see A4.407);
(b) the Scottish partnership condition; ie that a Scottish partnership is beneficially entitled to all interest, and the partnership consists only of individuals (see A4.408);
(c) the personal representative condition; ie that personal representatives are entitled to any interest, and they receive it in that capacity (see A4.409); or
(d) the settlement condition; ie that all the interest on the investment is income arising to trustees of a discretionary or accumulation settlement, and they receive it in that capacity (see A4.410).
The deciding factor in determining a 'relevant investment' is therefore the person beneficially
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