The Gazette 1993

GAZETTE

JAN/FEB 1993 '

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.

Conditions relating to Special

Savings Accounts:

• 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.

• 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.

•

Professional Information

(Cont'd from page 37)

Dublin

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.

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

Linda Kirwan,

Solicitor,

Committee Secretary,

Blackhall Place,

Dublin 7.