Dormant assets scheme—background and expansion
Originally, the dormant assets scheme was set up to enable banks and building societies to transfer funds from 'dormant accounts' into an authorised reclaim fund, which in turn transfers the money to the National Lottery Community Fund that then distributes the money to good causes throughout the UK1. 'Dormant accounts' are accounts that have been unused for 15 years and the owner cannot be contacted2. There are safeguards that allow the original owner to reclaim their money (plus accrued interest) from the authorised reclaim fund at a later date3. The income tax treatment of the accrued interest is considered below.
Although the legislation was originally enacted in 2008, the scheme did not become active until 20114.
The dormant
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