The Gazette 1993

GAZETTE

JAN/FEB 1993 '

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Special Savings Accounts

Investment update from Solicitors Financial Services Now that the Ministerial Order has been signed Special Savings Accounts have come into force. We feel that with interest rates at such a high level at the moment, clients should endeavour to place their money in a Special Savings Account fixed for two years. The likelihood is that as soon as the currency crisis has been resolved interest rates will decrease which will obviously affect longterm rates for the Special Savings Accounts. At present the indication rate available for two years fixed in a Special Savings Account is around 10'/2% per annum, larger sums of money will attract a higher rate. It is important to note that in a volatile money market, rates will be quoted on a daily basis and will tend to fluctuate. • DIRT (Deposit Interest Retention Tax) at 10% will be charged on interest earned on these accounts. At present, DIRT at 27% is charged on interest earned on money on deposit, so this will result in a substantial increase in your net return. Professional Information (Cont'd from page 37) Dublin 2 Firm has c.480 sq ft on ground floor and 2 car parking spaces to let on 2 years and 9 months basis to small firm; facilities sharing considered. Enquiries to Box No. 105. Northern Ireland Agents: For all contentious and non contentious matters. Consultation in Dublin, if required. Contact Norville Connolly D & E Fisher, Solicitors, 8 Trevor Hill, Newry. Telephone: (080693) 61616 Fax: 67712. Conditions relating to Special Savings Accounts:

• On these Special Savings Accounts, no further tax need be paid on interest earned as the 10% tax deducted at source satisfies the individual's full liability to tax. A special declaration, in the form prescribed by the Revenue Commissioners, must be completed by the account holder and must be held by the deposit taker. • Account holder must be of full age, i.e. over 18 years. • An individual can only hold one Special Savings Account at any one time and only with one financial institution. The maximum amount that each person can hold in this type of account is £50,000 (including interest) for a single person or £100,000 (including interest) for a married couple. • The account must be opened by and held in the name of the owner beneficially entitled to the interest. • No withdrawals may be made from the account within the first three months of it being opened and thereafter, withdrawals must be subject to thirty days notice. As only one Special Savings Account can be held by each person, it is important that the client obtains the best returns consistent with security

offered by each bank/building society. Only when the client is satisfied that high returns have been achieved on these accounts should any forms be signed. These Special Savings Accounts must be opened by completing a specific declaration which is available from any bank or building society. It is important to understand that any client's existing deposit accounts do not qualify. Please note that if your client signs up with one bank/building society now, he/she will be prevented from opening up another Special Savings Account with any other bank/building society even if the upper limit of £50,000 has not been reached. Other Deposit Accounts From 6 April, 1993 the DIRT tax of 27% deducted at source from interest on ordinary deposit accounts will be the only tax on the interest for individuals. In other words the 27% rate will satisfy the total income tax payable on ordinary non Special Savings Accounts. There is of course no limit on the amount of the deposit held in the account. The Investment Division in Sedgwick Dineen will be monitoring the range of Special Savings Accounts on behalf of Solicitors Financial Services and will be in a position to offer your clients extremely competitive rates. •

Family Law/Legal Aid Committee Formed The President of the Society, Raymond Monahan, has established a Family Law and Legal Aid Committee. The Committee, which is chaired by Moya Quinlan, will consider the various developments taking place in the area of family law reform. One of its first tasks will be to consider the White Paper on Marital Breakdown published by the former Government. Practitioners who work in, or have an interest in, this area are invited to submit topical items, queries etc. to the Committee. Correspondence should be addressed to * Linda Kirwan, Solicitor, Committee Secretary, Blackhall Place, Dublin 7.

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