# The Montserrat Reporting of Savings Income Information Order 2005, Article 8: Meaning of savings income


(1) Subject to paragraphs (3) to (6) and (8) savings income is—
(a) interest;
(b) interest accrued or capitalised at the sale, refund or redemption of a money debt;
(c) income distributed by a collective investment fund which is derived directly or indirectly, via other collective investment funds or residual entities, from interest;
(d) income realised upon the sale, refund or redemption of shares or units in a collective investment fund if that fund invests directly or indirectly, via other collective investment funds or residual entities, more than 40% of its assets in money debts.
(2) In paragraph (1) “interest”—
(a) includes—
(i) prizes attaching to money debts; and
(ii) premiums and discounts derived from money debts; and
(b) excludes—
(i) any interest which is not related to a money debt; and
(ii) penalty charges for late payment.
(3) In respect of savings income described in paragraph (1)(b), where an agent has no information concerning the amount of interest which is accrued or capitalised at the sale, refund or redemption of a money debt, the total amount of the proceeds of the sale, redemption or refund is savings income.
(4) In respect of savings income described in paragraphs (1)(c), where an agent has no information concerning the proportion of income which derives from interest the total amount of the income is savings income.
(5) In respect of savings income described in paragraphs (1)(c) and (d), subject to paragraph (9)—
(a) where a collective investment fund established in Montserrat has invested 15% or less of its assets directly or indirectly, via other collective investment funds or residual entities, in money debts there is no savings income;
(b) where a collective investment fund—
(i) is established in a member State which has derogated from paragraphs (1)(c) and (d) of Article 6 of the European Savings Directive in accordance with Article 6(6) of that European Community Directive; and
(ii) the collective investment fund has invested 15% or less of its assets in money debts in accordance with the law of that member State in the application of that derogation,
there is no savings income.
(6) In respect of savings income described in paragraph (1)(d)—
(a) where an agent has no information concerning the percentage of assets invested in money debts or in shares or units in collective investment funds, that percentage shall be considered to be more than 40%;
(b) where the agent cannot determine the amount of income realised by the relevant payee, the income shall be deemed to correspond to the proceeds of the sale, refund or redemption of the shares or units.
(7) From 1st January 2011 paragraphs (1)(d) and (6)(a) shall have the effect with the substitution of “25%” for “40%”.
(8) Subject to paragraph (9)—
(a) where a residual entity established in Montserrat invests 15% or less of its assets directly or indirectly, via collective investment funds or other residual entities, in money debts there is no savings income;
(b) where a residual entity—
(i) is established in a member State which has derogated from paragraphs (1)(c) and (d) of Article 6 of the European Savings Directive in accordance with Article 6(6) of that Directive; and
(ii) the residual entity has invested 15% or less of its assets in money debts in accordance with the law of that member State in the application of that derogation,
there is no savings income.
(9) In the application of paragraphs (5) and (8), where the agent cannot ascertain whether or not the collective investment fund or residual entity, as appropriate, has invested 15% or less of its assets in money debts in accordance with those provisions, there is savings income.
(10) The percentages referred to in this article shall be determined by reference to the investment policy as laid down in the fund rules or instruments of incorporation of the collective investment fund or residual entity concerned and, failing which, by reference to the actual composition of the assets of the collective investment fund or residual entity.
(11) In this article a “collective investment fund” is—
(a) a UCITS authorised in accordance with the European UCITS Directive;
(b) an entity which is treated as being a UCITS authorised in accordance with the European UCITS Directive for the purposes of the European Savings Directive by virtue of article 5(4) of this Order;
(c) a residual entity established in Montserrat which is treated by the Inland Revenue Department as being equivalent to a UCITS authorised in accordance with the European UCITS Directive; or
(d) an undertaking for collective investment established otherwise than in a member State or Montserrat.
This is subject to the following qualification.
If a collective investment fund provides arrangements for separate pooling of the contributions of the participants and the profits or income out of which payments are to be made to them and under which participants are entitled to exchange rights in one pool for rights in another, each separate pool shall be treated as a separate collective investment fund.

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Source: https://www.legislation.gov.uk/uksi/2005/1466/article/8 (the official version)
Page: https://openlegislation.uk/montserrat-reporting-of-savings-income-information-order-2005/article-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.