A4.406 'Relevant investments'—general

Administration and compliance

A4.406 'Relevant investments'—general

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:


    •     the individual interest condition; ie that the only persons beneficially entitled to the interest are individuals (see A4.407)


    •     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)


    •     the personal representative condition; ie that personal representatives are entitled to any interest, and they receive it in that capacity (see A4.409), or


    •     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 entitled to the interest, who may not be the person in whose name the account is held. Where, therefore, a deposit taker or a building society

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