Regulation 3 Exemption from tax of account income, maturity payments and death payments
Subject to compliance with the principal Regulations (and in particular with regulation 11 of those Regulations)—
no tax shall be chargeable on the account provider or his nominee, or on the account holder, in respect of—
interest paid or credited in respect of an account;
profit share return from arrangements falling within section 49 of the Finance Act 2005f1, paid or credited by a financial institution (within the meanings in Chapter 5 of Part 2 of that Act), in respect of an account;
a payment under a building society bonus scheme, so far as the bonus is calculated by reference to an account (and if paid directly by the society into the account, the payment shall not count towards the payment limits in regulation 11 of the principal Regulations);
any gain or loss accruing on and attributable to a maturity payment or death payment shall not be a chargeable gain or allowable loss for capital gains tax purposes; and
income arising from an account shall not be regarded as income for any income tax purposes (including section 629 of ITTOIA 2005f2).