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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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26 provisions
Title and introductory text
This Statutory Instrument has been made, in part, to correct an error in S.I. 2023/264 and is being issued free of charge to all known recipients of that Statutory Instrument.
2024 No. 350
INCOME TAX
CAPITAL GAINS TAX
The Individual Savings Account (Amendment) Regulations 2024
Made
11th March 2024
Laid before the House of Commons
12th March 2024
Coming into force
6th April 2024
The Treasury make these Regulations in exercise of the powers conferred by section 151(1) and (2) of the Taxation of Chargeable Gains Act 1992, sections 694, 695, 695A, 696, 698 and 701 of the Income Tax (Trading and Other Income) Act 2005 and section 4(6) of, and paragraphs 3, 7 and 9 of Schedule 1 to, the Savings (Government Contributions) Act 2017.
Propose a change1 Citation and commencement
These Regulations may be cited as the Individual Savings Account (Amendment) Regulations 2024 and come into force on 6th April 2024.
Propose a change2 Application in respect of individuals aged 16 or 17
(1) The amendments made by the provisions specified in paragraph (2) do not apply in respect of an individual who—
(a) had reached the age of 16 on or before 5th April 2024, and
(b) has not subsequently reached the age of 18.
(2) The specified provisions are—
(a) regulation 5;
(b) regulation 6;
(c) regulation 7(a) and (b);
(d) regulation 8;
(e) regulation 9;
(f) regulation 11;
(g) regulation 12;
(h) regulation 13;
(i) regulation 17;
(j) regulation 19(b)(ii) and (iii) and (c);
(k) regulation 23(a) to (c).
Propose a change3 Amendment of the Individual Savings Account Regulations 1998
The Individual Savings Account Regulations 1998 are amended as follows.
Propose a change4 Amendment of regulation 2
In regulation 2 (interpretation), in paragraph (1)(b)—
(a) in the definition of “non-UCITS retail scheme”, in paragraph (b) after “by virtue of section” insert “271A or”;
(b) in the definition of “recognised UCITS”—
(i) omit paragraph (a);
(ii) for paragraph (c) substitute—
(c) a recognised scheme by virtue of section 271A or 272 of FISMA 2000 that is a UCITS within the meaning given by section 236A of that Act;
.
Propose a change5 Amendment of regulation 2D
In regulation 2D (regulations that do not apply to junior ISA accounts) omit “4B,”.
Propose a change6 Amendment of regulation 2G
In regulation 2G (continuing account of a deceased investor and administration-period investments), in paragraph (2) for sub-paragraph (c) substitute—
(c) the day on which a person within section 694A(2) of ITTOIA 2005 withdraws all account investments, other proceeds in respect of such investments and cash representing subscriptions to the account.
.
Propose a change7 Amendment of regulation 4
In regulation 4 (general conditions for accounts and subscriptions to accounts)—
(a) in paragraph (1ZA)(a) omit “(ba) and”;
(b) in paragraph (1B) omit sub-paragraphs (a), (b) and (ba);
(c) in paragraph (6)(b) after “innovative finance component” insert “other than those within regulation 8A(2)(cb)”;
(d) in paragraph (7) after “but” insert “, except in the case of qualifying investments for an innovative finance component within regulation 8A(2)(cb),”;
(e) omit paragraphs (12) and (13).
Propose a change8 Amendment of regulation 4ZA
In regulation 4ZA (subscriptions to an account other than a junior ISA account)—
(a) in paragraph (5) for “(c) to (f)” substitute “(c) and (f)”;
(b) in paragraph (9)(b) for “(c) to (f)” substitute “(c) and (f)”.
Propose a change9 Amendment of regulation 4A
In regulation 4A (repair of certain incompatible account and excess subscriptions - accounts other than junior ISA accounts)—
(a) for paragraph (1) substitute—
(1) An invalid account is eligible for repair if, in relation to the year in which the subscriptions to the account were made (“the relevant year”) it meets the condition in paragraph (1A).
(1A) The condition in this paragraph is that the account is invalid only because the overall subscription limit in regulation 4ZA(1) has been exceeded.
;
(b) in paragraph (2)(a) omit “, and regulation 4B (except for determining when an account is closed) only”;
(c) in paragraph (3)(b) for “conditions of regulation 4(1B)(a), (b) or (ba), or 4ZA(1), as the case may be” substitute “overall subscription limit in regulation 4ZA(1)”;
(d) in paragraph (4)(a)(i) omit “within the meaning in regulation 4B)”;
(e) omit paragraph (6).
Propose a change10 Amendment of regulation 4AA
In regulation 4AA (application of the repair provisions to Lifetime ISAs), in paragraph (4) omit “or a payment described in regulation 10A(4)(c)”.
Propose a change11 Omission of regulation 4B
Omit regulation 4B (closure of cash account that is not a junior ISA account prior to the opening of the same type of account to be disregarded once).
Propose a change12 Amendment of regulation 5DZ
In regulation 5DZ (treatment of ISA where funds transferred on maturity of child trust fund - instructions), in paragraph (2)(b)(i) omit “(b) to”.
Propose a change13 Amendment of regulation 5DZA
In regulation 5DZA (treatment of ISA where funds transferred on maturity of child trust fund - no instructions), in paragraph (2)(b) omit “(b) to”.
Propose a change14 Amendment of regulation 5DDA
In regulation 5DDA (additional permitted subscription to an account other than a junior ISA account)—
(a) in paragraph (2)(e)(v) for “in the case of an innovative finance account” substitute “in the case of non-cash assets comprised or included in an innovative finance account, other than those specified in regulation 8A(2)(cb)”;
(b) for paragraph (3A) substitute—
(3A) For the purposes of paragraph (3), the value of any qualifying investments for an innovative finance component, other than those specified in regulation 8A(2)(cb) and (d), is the outstanding principal balance under those investments in respect of which payments are due to be made to the account manager.
;
(c) in paragraph (11)(b)(iv) after “8A(2)(ca)” insert “or (cb)”.
Propose a change15 Amendment of regulation 5DDB
In regulation 5DDB (flexible account)—
(a) omit paragraph (2);
(b) in paragraph (3) omit “other”;
(c) in paragraph (6) omit “of the whole of previous years’ subscriptions”.
Propose a change16 Amendment of regulation 8A
In regulation 8A (qualifying investments for an innovative finance component)—
(a) in paragraph (2) after sub-paragraph (ca) insert—
(cb) investments that meet the condition in paragraph (5) and—
(i) are qualifying investments under regulation 7(2)(f), or
(ii) would be qualifying investments under regulation 7(2)(g), but for the condition in paragraph (6) being met in respect of them;
;
(b) after paragraph (4) insert—
(5) The condition in this paragraph is that the investments are subject to a notice period that would prevent the condition in regulation 4(7) from being met in respect of them if they were held in a stocks and shares account.
(6) The condition in this paragraph is that the instrument constituting the scheme provides for it to operate limited redemption arrangements in accordance with Rule 6.2.16(7) of COLL.
.
Propose a change17 Amendment of regulation 10
In regulation 10 (qualifying individuals who may invest under an account that is not a junior ISA account nor a Lifetime ISA)—
(a) in paragraph (2)—
(i) for sub-paragraph (a) substitute—
(a) who is 18 years of age or over;
;
(ii) omit sub-paragraphs (b), (c) and (cza);
(b) omit paragraph (3).
Propose a change18 Amendment of regulation 10A
In regulation 10A (Lifetime ISA qualifying individuals who may invest under a Lifetime ISA), in paragraph (4) omit—
(a) the “and” after sub-paragraph (b);
(b) sub-paragraph (c).
Propose a change19 Amendment of regulation 12
In regulation 12 (conditions for application to open an account that is not a junior ISA account or a Lifetime ISA)—
(a) for paragraph (1) substitute—
(1) An application by an individual to open an account must—
(a) be made to an account manager in a statement, and
(b) meet the conditions in paragraphs (2), (3) and (4).
;
(b) in paragraph (3)—
(i) in sub-paragraph (b) for “in which the applicant subscribes to the account” substitute “until the account is closed”;
(ii) omit sub-paragraphs (d) and (e);
(iii) in sub-paragraph (f) for “16” substitute “18”;
(iv) omit sub-paragraph (fa);
(c) omit paragraph (11A).
Propose a change20 Amendment of regulation 14
In regulation 14 (account manager - qualifications and Board’s approval), in paragraph (2)(d) omit paragraph (i).
Propose a change21 Amendment of regulation 17
In regulation 17 (account manager - withdrawal by Board of approval), in paragraph (2)—
(a) omit the “or” after sub-paragraph (a);
(b) after sub-paragraph (b) insert—
; or
(c) that a person to whom they have given approval to act as an account manager has not, within a period of 18 months beginning with the day on which approval was given, acted as an account manager in respect of an account.
.
Propose a change22 Amendment of regulation 17A
In regulation 17A (account manager - withdrawal by Board of approval of junior ISA manager), in paragraph (2)—
(a) in sub-paragraph (a) for “manager”, in the first place it occurs, substitute “managed”;
(b) omit the “or” after sub-paragraph (a);
(c) after sub-paragraph (b) insert—
; or
(c) that a person to whom they have given approval to act as an account manager has not, within a period of 18 months beginning with the day on which approval was given, acted as an account manager in respect of an account.
.
Propose a change23 Amendment of regulation 21
In regulation 21 (transfers relating to accounts other than junior ISA accounts)—
(a) for paragraph (3) substitute—
(3) The current year’s subscriptions and the previous years’ subscriptions may be transferred in whole or in part.
;
(b) for paragraph (4B) substitute—
(4B) Subscriptions in sub-paragraphs (a) and (b) of the definition of “the current year’s subscriptions” in paragraph (1) are to be treated, for all purposes, as if they had been made to the account held with the transferee where—
(a) the current year’s subscriptions (with or without other subscriptions) are transferred under this regulation, and
(b) the transferor has provided the information specified in paragraph (6), if that paragraph applies in relation to the transfer.
;
(c) in paragraph (4C) omit sub-paragraphs (a), (b) and (c);
(d) for paragraph (5B) substitute—
(5B) Paragraph (5) does not apply where—
(a) a transfer falls within paragraph (2)(b), or
(b) a transferor provides information to a transferee in accordance with regulation 21A(2)(b)(ii).
;
(e) in paragraph (6)—
(i) omit sub-paragraph (ba);
(ii) in sub-paragraph (d) omit paragraphs (vi) and (vii).
Propose a change24 Amendment of regulation 31
In regulation 31 (returns of information by account manager)—
(a) in paragraph (3)(d)—
(i) for “8A(2)(a) or 8A(2)(ca)” substitute “8A(2)(a), (ca) or (cb)”;
(ii) for “(i) and (ii)” substitute “(i) to (ii)”;
(iii) in paragraph (i), at the beginning insert “for investments of the kind specified in regulation 8A(2)(a) or (ca),”;
(iv) after paragraphs (i) and (ii) omit “and”;
(v) after paragraph (i) insert—
(ia) for investments of the kind specified in regulation 8A(2)(cb), their market value determined either as at 5th April in that year, or any other valuation date in that year, not falling earlier than 5th October; and
;
(b) in paragraph (4)(d)—
(i) after paragraphs (i) and (ii) omit “and”;
(ii) after paragraph (iii) insert—
, and
(iv) the market value of investments specified in regulation 8A(2)(cb).
.
Propose a change25 Amendment of the Schedule
In the Schedule (Lifetime ISA further provision)—
(a) in paragraph 1 (interpretation)—
(i) in sub-paragraph (1)—
(aa) for the definition of “claim period” substitute—
“claim period” means—
a period beginning with the 6th day of a month and ending with the 5th day of the following month, or
such period as may be specified from time to time under paragraph 2(1);
;
(bb) in the definition of “qualifying addition” omit “or a payment under regulation 10A(4)(c)”;
(ii) omit sub-paragraphs (2), (3) and (4);
(b) in paragraph 2 (government bonus claim) omit sub-paragraph (11);
(c) in paragraph 7 (definitions for the purposes of paragraph 6), after the definition of “a legal interest in land” insert—
“loan” does not include a loan made by a person who is connected to the account investor, and for this purpose “connected” has the meaning given by section 993 of ITA 2007;
;
(d) in paragraph 13 (withdrawals: information returns) omit sub-paragraph (5).
Propose a change