Finance Act, 1993

• Permanent Page URL

Limits to special investments.

16.—(1) An individual shall not at the same time have a beneficial interest in investments of more than one of the following classes of investment—

(a) special savings accounts within the meaning of section 31 (1) (as amended by the Finance Act, 1993) of the Finance Act, 1986 (such an account being referred to subsequently in this section as “a special savings account”);

(b) special investment policies within the meaning of section 36 A (1) (inserted by section 11 ) of the Corporation Tax Act, 1976 ;

(c) special investment units within the meaning of section 13 ;

(d) special portfolio investment accounts within the meaning of section 14 :

Provided that—

(i) an individual, whether married or not, who does not have a joint interest in an investment of a class mentioned in this subsection may have a beneficial interest, that is not a joint interest, in two such investments, being a special savings account and an investment of a class mentioned in paragraph (b), (c) or (d), during a period throughout which—

(I) as respects the special savings account, the condition specified in section 37A (1) (e) (inserted by the Finance Act, 1992 ) of the Finance Act, 1986 , would be satisfied if “£25,000” were substituted for “£50,000” in the said paragraph (e), and

(II) as respects the other investment, the condition specified in section 36A (3) (b) (inserted by section 11 ) of the Corporation Tax Act, 1976 , or section 13 (3) (b) or 14 (2) (b) relevant to that investment would be satisfied if “£25,000” were substituted for “£50,000” in paragraph (b) of the appropriate provision aforesaid, and

(ii) a couple married to each other, neither of whom has an interest, that is not a joint interest, in an investment of a class mentioned in this subsection, may have a joint beneficial interest—

(I) in two such investments, being a special savings account and an investment of a class mentioned in paragraph (b), (c) or (d), or

(II) in three or four such investments, being one or two special savings accounts and one or two other investments of a class (which need not be the same class where there are two investments) mentioned in paragraph (b), (c) or (d), during a period throughout which—

(A) as respects the special savings account or accounts, as the case may be, the condition specified in the said section 37A (1) (e) would be satisfied if “£25,000” were substituted for “£50,000” in the said paragraph (e), and

(B) as respects the other investment or investments, as the case may be, the condition specified in the said section 36A (3) (b) or section 13 (3) (b) or 14 (2) (b) relevant to that investment or to each of those investments, as the case may be, would be satisfied if “£25,000” were substituted for “£50,000” in paragraph (b) of the appropriate provision aforesaid.

(2) So long as an individual has a beneficial interest—

(a) held otherwise than jointly in two investments of a class mentioned in subsection (1), or

(b) held jointly in three or four such investments,

then, any provision of the Tax Acts, which would, apart from this subsection, have the effect, at any time, of restricting any of those investments to an investment the value of which does not exceed £50,000, shall apply to that investment as if the reference to £50,000 in the provision were a reference to £25,000.

(3) Where an individual holds a beneficial interest otherwise than jointly in an investment of a class mentioned in subsection (1), a declaration under the Tax Acts made by him in connection with that investment shall contain—

(a) a statement by him as to whether or not he has, on the day on which he makes the declaration, a beneficial interest in another investment of a class so mentioned, and

(b) if the statement is to the effect that he has no such beneficial interest, an undertaking by him that, if on a day subsequent to the day on which he makes the declaration he acquires such a beneficial interest while retaining his beneficial interest in the investment in respect of which he made the declaration, he will immediately notify in writing the person to whom he has made the declaration—

(i) that he has acquired a beneficial interest in a second such investment, and

(ii) of the date of the acquisition.

(4) Where an individual holds a beneficial interest jointly in an investment of a class mentioned in subsection (1), a declaration under the Tax Acts made by him in connection with that investment shall contain—

(a) a statement by him as to whether or not he has, on the day on which he makes the declaration, a joint beneficial interest in more than two investments of a class so mentioned, and

(b) if the statement is to the effect that he has no such beneficial interest, an undertaking by him that, if on a day subsequent to the day on which he makes the declaration he acquires a joint beneficial interest in a third investment of such a class while retaining a joint beneficial interest in the investment in respect of which he made the declaration and in another investment of such a class as aforesaid, he will immediately notify in writing the person to whom he has made the declaration—

(i) that he has acquired a beneficial interest in a third such investment, and

(ii) of the date of the acquisition.