Commentary on Sections Overview Overview Section 985: Meaning of “qualifying certificate of deposit”
3012.This section defines “qualifying certificate of deposit”. It is based on sections 349(4) and 482(6) of ICTA.
3013.Interest (and, in the case of building societies, dividends) paid by a deposit-taker or building society in respect of a deposit in respect of which a “qualifying certificate of deposit” has been issued is payable gross (see sections 865 and 889).
3014.In order for a “certificate of deposit” (defined in section 1019) to be a “qualifying certificate of deposit”, the certificate must require the issuer to pay an amount of at least £50,000 (or equivalent if made in a foreign currency) at a specified time within five years of the deposit being made.
3015.The definition of “qualifying certificate of deposit” has been aligned to the wording of the definition of “qualifying time deposit” (see section 866) so that it is clear that a “qualifying certificate of deposit” can only be paid in one tranche “at a specified time”. See Change 149 in Annex 1.