Aoife received €1,000 gross interest in 2020 from a deposit account held with a bank in Cork. For USC purposes, this deposit interest is:

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Prepare for the Qualified Financial Adviser Exam 2 with flashcards and multiple choice questions, complete with hints and explanations. Get exam-ready and increase your confidence with our comprehensive study materials!

Multiple Choice

Aoife received €1,000 gross interest in 2020 from a deposit account held with a bank in Cork. For USC purposes, this deposit interest is:

Explanation:
Bank deposit interest is not counted when calculating USC. In 2020, the interest Aoife earned from a savings account is treated separately from USC calculations (often via the DIRT regime), so it does not enter the USC base. This means the €1,000 of gross interest doesn’t attract USC at any fixed rate, nor is there a threshold rule that would suddenly make it taxable under USC. Other options imply specific rates or thresholds for this income type, which isn’t how USC is applied here.

Bank deposit interest is not counted when calculating USC. In 2020, the interest Aoife earned from a savings account is treated separately from USC calculations (often via the DIRT regime), so it does not enter the USC base. This means the €1,000 of gross interest doesn’t attract USC at any fixed rate, nor is there a threshold rule that would suddenly make it taxable under USC. Other options imply specific rates or thresholds for this income type, which isn’t how USC is applied here.

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