Written Answers. - Tax Rates.
Richard Bruton
Ceist:
82
Mr. R. Bruton
asked the
Minister for Finance
if he will give details of the tax free thresholds, the rates of tax, the limits on accounts and any other conditions which apply in respect of DIRT on deposit accounts, credit union share and deposit accounts, special savings accounts and special investments accounts.
[23936/99]
I am advised by the Revenue Commissioners that the rates of tax in respect of deposit accounts, credit union accounts, special savings accounts and special investment accounts are as follows:
|
Type of Account
|
Level of Tax
|
|
Ordinary Deposit Accounts
|
DIRT @ 24% plus 2.25% levies
|
|
Credit Union Accounts
|
No tax deducted at source but subject to the standard and higher rates of tax.
|
|
Special Savings Accounts
|
DIRT @ 20%
|
|
Special Portfolio Investment Accounts
|
DIRT @ 20%
|
|
Special Investment Units
|
Income Tax @ 20%
|
|
Special Investment Policies
|
Corporation Tax @ 20%
|
In relation to the limit on accounts, I presume that the Deputy is referring to investment limits and these are set out as follows:
Summary of Limits on AccountsIndividuals, including married persons who choose not to invest jointly with their spouses, may invest up to £75,000 in one special savings account, SSA, or up to £75,000 in one investment in any special investment product or up to £50,000 in one special savings account and up to £25,000 in one investment in any other special investment product or up to £25,000 in one special savings account and up to £50,000 in one investment in any other special savings product.
A married couple investing jointly may invest in one or two joint special savings accounts, up to £75,000 in each account or in one or two joint investments in other special investment products, up to £75,000 in each investment or up to £50,000 in each of two joint special savings accounts and up to £50,000 in one investment in any other special investment product or up to £50,000 in each of two joint special savings accounts and up to £25,000 in each of two investments in any other special investments products or up to £50,000 in one joint special savings account and up to £50,000 in each of two investments in any other special investment products or up to £25,000 in each of two joint special savings accounts and up to £50,000 in each of two investments in any other special investment products.
Where a special portfolio investment account, SPIA, is opened on or before 5 April 2000, a further amount up to £10,000 can be invested in the SPIA at any time without breaching the above limits, provided that it is invested in companies quoted on the developing companies market, DCM. The increased limit applies only so long as the SPIA continues to hold the DCM investment. Where the DCM investment is sold, the original limits apply once more to the SPIA. There are no tax free thresholds below which DIRT is not deductible.
The conditions for investment in special investment products are: investors must be individuals of full age, i.e. 18 or over or married. The investment cannot be held through a nominee. It must be held directly by the beneficial holder of the investment.
It is unclear to what other conditions the Deputy is referring. For example, DIRT is refundable in certain circumstances to persons over 65 or the permanently incapacitated. I understand that the Revenue Commissioners are forwarding copies of Revenue leaflets which may be of assistance to the Deputy.
