3(1)Subject to the following provisions of this paragraph, a deposit is a chargeable deposit at a material time if it is then held on terms under which in does not carry interest or a premium.U.K.
(2)The following are not chargeable deposits—
(a)any deposit not denominated in sterling;
(b)any deposit paid to the deposit-taker by a company if at the material time the deposit-taker is a subsidiary of that company, or that company is a subsidiary of the deposit-taker, or both are subsidiaries of another company;
(c)where the deposit-taker is resident in the United Kingdom for the purposes of income or corporation tax, any deposit which at the material time is held at a branch of his situated outside the United Kingdom;
(d)where the deposit-taker is not so resident, any deposit which at that time is held otherwise than at a branch of his situated in the United Kingdom.
(3)In sub-paragraph (1) above the reference to interest or a premium shall not be construed as including any allowance made by the deposit-taker in calculating whether any, and if so what, bank or other charges are to be made by him to the person making the deposit.
(4)In sub-paragraph (2)(b) above “subsidiary” shall be construed in accordance with section 154 of the M1Companies Act 1948 or section 148 of the M2Companies Act (Northern Ireland) 1960.
(5)For the purposes of sub-paragraph (2)(c) and (d) above a deposit is held at a branch of a deposit-taker if it is recorded in his books as a liability of that branch.