The Individual Savings Account Regulations 1998

Made: 31st July 1998

Laid before the House of Commons: 31st July 1998

Coming into force: In accordance with regulation 1

The Treasury, in exercise of the powers conferred on them by sections 333, 333A and 333B of the Income and Corporation Taxes Act 1988, section 151 of the Taxation of Chargeable Gains Act 1992 and sections 75 and 76(3) of the Finance Act 1998, hereby make the following Regulations:

Citation and commencement

1

These Regulations may be cited as the Individual Savings Account Regulations 1998 and shall come into force for the purposes of—

• (a) applications under regulations 12 and 13 relating to the year 1999—00, to subscribe to an account in that year,

• (b) applications under regulation 14 to be approved as an account manager to manage accounts in the year 1999—00 and subsequent years, and

• (c) regulations 16 to 18 and 20, so far as they relate to applications referred to in paragraph (b),

on 1st October 1998, and for all other purposes on 6th April 1999.

Interpretation

2

• (1) In these Regulations unless the context otherwise requires—

• (a) “account", except in the case of—

• (i) an account with a deposit-taker, or

• (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (iii) a share or deposit account with a building society, or

• (iv) a deposit account with a person falling within section 991(2) of the Income Tax Act 2007,

shall be construed in accordance with regulation 4(1) and, where appropriate, regulation 2B(b) and shall include a personal equity plan treated on and from the 6th April 2008 as a stocks and shares account;

• an “account investment” is an investment under the account which is a qualifying investment for a stocks and shares component, a cash component, an innovative finance component or a Lifetime ISA component, as the case may be, within the meaning of regulation 7, 8, 8ZA or 8A;

• an “account investor” has the meaning given in regulation 2A;

• an “account manager" is a person who fulfils the conditions of these Regulations and is approved by the Board for the purposes of these Regulations as an account manager;

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• “approved profit sharing scheme" has the same meaning as in Chapter IV of Part V of the Taxes Act;

• “article 36H agreement” is to be construed in accordance with article 36H(4) of the Regulated Activities Order 2001 and is an agreement entered into by an account investor as lender with a borrower with the facilitation of an operator and for the purposes of regulation 8A(2) includes such an agreement notwithstanding that, after it is entered into, the operator or, in relation to a continuing account of a deceased investor, any person within the description of section 694A(2) of ITTOIA 2005 or referred to in section 694A(1) of that Act, assumes the rights of the lender under it;

• an “assurance undertaking" means a direct life insurance undertaking within the meaning of Article 2 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);

• “bank” has the meaning given by section 991(2) to (5) of the Income Tax Act 2007;

• “the Board” means the Commissioners for Her Majesty’s Revenue and Customs;

• “borrower” is to be construed in accordance with article 36H(9) of the Regulated Activities Order 2001;

• “building society" means a building society within the meaning of the Building Societies Act 1986 , or the Irish Building Societies Act 1989 ;

• “building society bonus”, except in regulation 22(1)(a)(i), excludes any bonus, distribution of funds or the conferring of rights in relation to shares—in connection with an amalgamation, transfer of engagements or transfer of business of a building society, andmentioned in section 96 or 100 of the Building Societies Act 1986,and “payment under a building society bonus scheme” shall be construed accordingly;.

• “business day” means any day except—a Saturday, Sunday, Good Friday or Christmas Day;a bank holiday under the Banking and Financial Dealings Act 1971;

• “ceasing to be subject to the plan”, in relation to plan shares under a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• “charity” has the meaning given in paragraph 1(1) of Schedule 6 to the Finance Act 2010;

• “child” means an individual under 18;

• “child trust fund” has the meaning given by section 1 of the Child Trust Funds Act 2004;

• “Child Trust Funds Regulations” means the Child Trust Funds Regulations 2004;

• “company", except in regulation 7(4), means any body corporate having a share capital other than—an open-ended investment company, within the meaning given by section 236 of the Financial Services and Markets Act 2000, or a UK UCITS, recognised UCITS or non-UCITS retail scheme ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “continuing account of a deceased investor” has the meaning given in regulation 2G;

• “credit union” means a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985;

• “CTA 2010” means the Corporation Tax Act 2010;

• “CTF matured account” has the meaning given in regulation 5DZA;

• “current year payments” has the meaning given in regulation 10A(3);

• “debenture” includes any instrument creating or acknowledging indebtedness within the meaning of article 77(1) and (2) of the Regulated Activities Order 2001 but with the omission of the words “such of the following as do not fall within article 78;

• “deceased’s account” is an account which the deceased held with an account manager at the date of the deceased’s death;

• “deposit-taker" has the meaning given by section 853 of ITA 2007;

• “the Director of Savings” has the same meaning as in the National Debt Act 1972

• “dormant account” means an account which contains a “relevant dormant asset” within the meaning given in section 39(2) of the Finance Act 2008, omitting the words “is to be, or”;

• ...

• “EEA State” has the meaning given in Schedule 1 to the Interpretation Act 1978;

• “eligible child” means a child—born—on or after 3rd January 2011; orbefore the time mentioned in paragraph (i) but who is not an “eligible child” within the meaning given in the Child Trust Funds Act 2004; andwho, at the time when the application to open an account pursuant to a junior ISA application described in regulation 12A is made, is—resident ... in the United Kingdom;a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003;married to, or in a civil partnership with, a person mentioned in paragraph (ii); ora dependant of a person mentioned in paragraph (ii);

• “eligible conveyancer” has the meaning given in paragraph 7 of the Schedule;

• “European institution” means a person who is treated as having permission to carry on a regulated activity in the United Kingdom under Part 4A of the Financial Services and Markets Act 2000 by virtue of regulations 8, 11, 28 or 34 of the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018;

• “51% subsidiary” and “75% subsidiary” have the same meanings as they do in section 1154 of CTA 2010;

• “first subscription”, in any year, means the first subscription into an account in that year which is not a subscription made in accordance with regulation 5D;

• “flexible account” has the meaning given in regulation 5DDB;

• “gains", except in regulations 22(1)(a)(ii) to (v) and 35(6), means “chargeable gains"within the meaning of the Taxation of Chargeable Gains Act 1992;

• “gilt-edged securities" has the meaning given by paragraphs 1 and 1A of Schedule 9 to the Taxation of Chargeable Gains Act 1992;

• “government bonus” has the meaning given in the Schedule;

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• an “incorporated friendly society" means a society incorporated under the Friendly Societies Act 1992 ;

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• “innovative finance account” has the meaning given in regulation 4(1ZA);

• “interim permission” is to be construed in accordance with Chapter 4 of Part 8 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013;

• “investment trust” means an investment trust within the meaning of section 1158 of the Corporation Tax Act 2010;

• “ITA 2007” means the Income Tax Act 2007;

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

• “junior ISA account” has the meaning given in regulation 2B;

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• “lender” is to be construed in accordance with article 36H(9) of the Regulated Activities Order 2001;

• “Lifetime ISA” has the meaning given in regulation 4(1ZB);

• “Lifetime ISA payment limit” has the meaning given in regulation 4ZA(1A);

• “Lifetime ISA qualifying individual” has the meaning given in regulation 10A;

• “Looked After Child” has the meaning given in regulation 2F (special provision in respect of Looked After Children);

• “the Management Act" means the Taxes Management Act 1970 ;

• “market value" shall be construed in accordance with section 272 of the Taxation of Chargeable Gains Act 1992;

• “named child” means a child who holds an account opened pursuant to a junior ISA application described in regulation 12A;

• “notice", except in regulations 9 and 36, means notice in writing and “notify" shall be construed accordingly;

• “operator” means a person who has permission (other than an interim permission) under Part 4A of FISMA 2000 to carry on the regulated activity specified in article 36H(1) of the Regulated Activities Order 2001;

• “outstanding principal balance” means, in respect of a qualifying investment for an innovative finance component, the amount in respect of the investment owing to the account investor at any time;

• “parental responsibility” means—parental responsibility within the meaning of the Children Act 1989 or the Children (Northern Ireland) Order 1995, orparental responsibilities within the meaning of the Children (Scotland) Act 1995;

• “participant”, in relation to a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• “plan shares”, in relation to a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003) except that—paragraph 87(6) of Schedule 2 to ITEPA 2003 (meaning of the word “shares” in the context of company reconstructions) shall not apply, andin paragraph 88(2) of that Schedule (treatment of shares acquired under rights issue) the words “or securities or rights” shall be treated as omitted;

• “qualifying addition” has the meaning given in the Schedule;

• “qualifying distribution" has the same meaning as in section 1136 of the Corporation Tax Act 2010;

• “qualifying investments for an innovative finance component” has the meaning given in regulation 8A;

• “recognised stock exchange" has the same meaning as in section 1005 of ITA 2007 ;

• a “registered friendly society" has the meaning given by the Friendly Societies Act 1992 , and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society;

• “Regulated Activities Order 2001” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

• “release date" has the meaning given by section 187(2) of the Taxes Act ;

• “relevant authorised person" has the same meaning as in section 697(2)(b) of ITTOIA 2005;

• “replacement subscription” has the meaning given in regulation 5DDB;

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• “responsible person” means a person who is the responsible person in respect of the management of a junior ISA account in accordance with regulation 2C(4);

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• “Schedule 2 SIP” shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• “Schedule 3 SAYE option scheme” shall be construed in accordance with the SAYE code (see section 516(3) of ITEPA 2003);

• “security", except in regulations 7(2)(c) to (cc) and (8)(b), 8(2)(f) and 34(3), means any loan stock or similar security of a company whether secured or unsecured, and in regulation 7(2)(cc) has the same meaning but with the omission of the words “of a company”;

• “the Stakeholder Products Regulations” means the Financial Services and Markets Act 2000 (Stakeholder Products) Regulations 2004;

• “tax" where neither income tax nor capital gains tax is specified means either of those taxes;

• “tax credit" means a tax credit under section 231 of the Taxes Act ;

• “the Taxes Act" means the Income and Corporation Taxes Act 1988;

• “transferable security” has the meaning given in section 102A(3) of FISMA 2000;

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• “year" means a year of assessment, and “the year 1999—00" means the year of assessment beginning on 6th April 1999;

• (b)

• “authorised fund” means—an authorised unit trust, oran open-ended investment company...;

• “authorised unit trust" means a unit trust scheme in the case of which an authorisation order ... under section 243 of the Financial Services and Markets Act 2000 is in force;

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• “collective investment scheme” has the meaning in section 235 of FISMA 2000;

• “COLL” means the Collective Investment Schemes Sourcebook made by the Financial Conduct Authority under FISMA 2000;

• “depositary interest” means the rights of the person mentioned in paragraph (b), under a certificate or other record (whether or not in the form of a document) acknowledging—that a person holds relevant investments or evidence of the right to them, andthat another person is entitled to rights in or in relation to those or identical relevant investments, including the right to receive such investments, or evidence of the right to them or the proceeds from such investments, from the person mentioned in paragraph (a),

• where “relevant investments” means investments which are exclusively qualifying investments for a stocks and shares component falling within any of regulation 7(2)(a) to (h), and the rights mentioned in paragraph (b) are exclusively rights in or in relation to relevant investments;

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• “FISMA 2000” means the Financial Services and Markets Act 2000;

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• “insolvency event” means the procedures listed in the definition of “insolvency event” in regulation 23(18) of the Payment Services Regulations 2017;

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• “long-term asset fund” means a scheme to which chapter 15 of COLL applies;

• “non-UCITS retail scheme”— has the meaning in COLL (that is, a scheme to which, or to whose authorised fund manager and depositary, sections 5.1, 5.4 and 5.6 of COLL apply),includes a “recognised scheme” by virtue of section 271A or ... 272 of FISMA 2000, which would fall within paragraph (a) of this definition if it were an authorised fund, andincludes a sub-fund of an umbrella which the terms of the scheme identify as a sub-fund which would fall within paragraph (a) or (b) of this definition if it were itself an authorised fund or a recognised scheme.In this definition, expressions defined in the Glossary of the Financial Conduct Authority Handbook have those defined meanings;

• “open-ended investment company” means a company incorporated in the United Kingdom to which section 236 of the Financial Services and Markets Act 2000 applies;

• “qualifying units in or shares of a non-UCITS retail scheme” means that—the instrument constituting the scheme secures that redemption of the units or shares in question shall take place no less frequently than bi-monthly (see Rule 6.2.16(6) of the ... COLL omitting the words “Except where (7) applies, and”, read with Rule 6.3.4(1), whether or not those Rules apply to the scheme), anda provision for suspension of dealings in exceptional conditions in accordance with Rule 7.2 of the COLL (or any foreign procedure which is a direct foreign equivalent of that Rule) shall not be treated as a provision contrary to paragraph (a) of this definition;

• “recognised UCITS” means—...an undertaking established in Gibraltar which is a UCITS under the law of Gibraltar which implemented Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities; ; or 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;

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• “UK UCITS” means—a collective investment scheme with Part 4A permission under FISMA 2000, which complies with the requirements to be a “UCITS scheme” for the purposes of the COLL; ora part of a UK UCITS mentioned in paragraph (a) of this definition which would be a sub-fund of an umbrella scheme which is a UK UCITS;

• “umbrella scheme” means an authorised fund which according to the terms of the scheme is an umbrella scheme belonging to the category under that name established by the Financial Conduct Authority, andin the case of an authorised fund which is an authorised unit trust, references to a part of an umbrella scheme shall be construed in accordance with subsection (8) of section 468 of the Taxes Act, and sub-paragraphs (6) and (7) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations, and in the case of an authorised fund which is an open-ended investment company, references to a part of an umbrella scheme shall be construed in accordance with subsection (4) of section 468A of the Taxes Act, and sub-paragraphs (2) and (3) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations;

• “unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme;

• “unit trust scheme” has the meaning given by section 237 of the Financial Services and Markets Act 2000;

• “units", in relation to an authorised unit trust, means the rights or interests (however described) of the unit holders in that authorised unit trust and, in relation to a part of an umbrella scheme, means the rights or interests for the time being of the unit holders in that part;

• “units in, or shares of, a ... UK UCITS or recognised UCITS" means the rights or interests (however described) of the holders of the units or shares in that ... UK UCITS or recognised UCITS;

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• (1A) In these Regulations—

• (a) a “bulk transfer of accounts” occurs where two or more accounts are transferred by an account manager (“the transferor”) to another account manager (“the transferee”)—

• (i) pursuant to an agreement made between the transferor and the transferee where the transfers are not made pursuant to requests made by a person who is the account investor or registered contact in relation to the accounts transferred; or

• (ii) pursuant to an insurance business transfer scheme or a banking business transfer scheme under Part 7 (Control of Business Transfers) of the Financial Services and Markets Act 2000;

• (b) a “group transfer of accounts” occurs where a bulk transfer of accounts is made between account managers that are members of the same group of companies when the transfer occurs;

• (c) two companies are members of the same group of companies if—

• (i) one is a 75% subsidiary of the other, or

• (ii) both are 75% subsidiaries of a third company.

• (2) The Table below indexes other definitions in these Regulations:

Term defined	Regulation
Account	4(1)
Cash account	4(1A)(a) and (c)
Component	4(1A)(b) and (c)
The disqualifying circumstances	17(1)
Interim claim	25
. . .	. . .
. . .	. . .
. . .	. . .
Qualifying circumstances	14(1)
Qualifying individual	10
Qualifying investments for a stocks and shares component	7
Qualifying investments for a cash component	8
Qualifying investments for a Lifetime ISA component	8ZA
. . .	. . .
Qualifying securities	7(2)(b)
Registered contact	2C
Stocks and shares account	4(1A)(a) and (b)
Subscription limit – junior ISA account	4ZB
Subscription limit – other accounts	4ZA
. . .	. . .
. . .	. . .

Introductory

3

These Regulations provide for the setting up of plans in the form of an account, by account managers approved by the Board, under which individuals may make certain investments, for the conditions under which they may invest and under which those accounts are to operate, for relief from tax in respect of account investments and generally for the administration of tax in relation to such accounts.

General conditions for accounts and subscriptions to accounts

4

• (1) An account is a scheme of investment, to which a subscription may be made, which is an innovative finance account or a Lifetime ISA or in respect of which—

• (a) the conditions and requirements contained in paragraphs (1A) and (5) to (8) are fulfilled; and

• (b) either—

• (i) the conditions contained in paragraph (1B) are fulfilled, or

• (ii) at the time when the subscription to the account is made, the account is a junior ISA account.

• (1ZA) An innovative finance account is an account in respect of which—

• (a) the conditions in paragraphs (1A)(a) and (ca); (1B)... (c), d(i) and (e); (5); (6)(a), (e) and (g) are fulfilled;

• (b) in relation to cash held in an account, the conditions in paragraphs (6)(f) and (fa) and (7) are fulfilled; and

• (c) the application to open the account is made in accordance with regulation 12.

• (1ZB) A Lifetime ISA is an account in respect of which—

• (a) the conditions in paragraphs (1A)(a) and (cb), (1B)(bb), (c), (d)(ii), (e) and (f) and (5) to (10) are fulfilled; and

• (b) the application to open the account is made in accordance with regulation 12B.

• (1A) The conditions in this paragraph are—

• (a) the account is set up as a stocks and shares account, a cash account, an innovative finance account or a Lifetime ISA;

• (b) a stocks and shares account is made up of a single stocks and shares component only;

• (c) a cash account is made up of a single cash component only;

• (ca) an innovative finance account is made up of a single innovative finance component only;

• (cb) a Lifetime ISA is made up of a single Lifetime ISA component only;

• (d) the application to open the account is made in accordance with regulation 12 or 12A.

• (1B) The conditions in this paragraph are—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (bb) a Lifetime ISA qualifying individual may only make a qualifying addition to a single Lifetime ISA in a particular year;

• (c) it is an account to which only one qualifying individual subscribes or, in the case of a Lifetime ISA, to which only one Lifetime ISA qualifying individual makes a qualifying addition;

• (d) subject to regulations 5DDA(2)(e) and 7(2)(h), it is—

• (i) an account that is not a Lifetime ISA account to which the qualifying individual subscribes only by payment to the account manager of a sum or sums of the individual’s cash, or

• (ii) a Lifetime ISA to which the Lifetime ISA qualifying individual makes qualifying additions only by—

• (aa) payment to the account manager of a sum or sums of the individual’s cash; or

• (bb) a transfer of qualifying investments for a Lifetime ISA component from another account of the account investor;

• (e) the subscriptions made by the qualifying individual to accounts (ignoring transfers and payments from account managers to the individual) do not in the aggregate in any year exceed the subscription limit in regulation 4ZA(1) ... ; and

• (f) in the case of a Lifetime ISA the current year payments made by a Lifetime ISA qualifying individual do not in aggregate in any year exceed the Lifetime ISA payment limit in regulation 4ZA(1A).

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) An account must at all times be managed in accordance with these Regulations by an account manager and under terms agreed in a recorded form between the account manager and the account investor.

• (6) Apart from other requirements of these Regulations the terms agreed to which paragraph (5) refers shall secure—

• (a) that the account investments shall be in the beneficial ownership of—

• (i) in the case of an account that is not a junior ISA account, the account investor; or

• (ii) in the case of a junior ISA account, the named child;

• (aa) where the account investments are fractional interests, that—

• (i) the requirement under sub-paragraph (a) applies in relation to the beneficial ownership of the whole share in which the account investor holds a fractional interest, and

• (ii) the beneficial interest held by the account investor shall be in proportion to the fractional interest in the whole share;

• (b) that, except in relation to a fractional interest, qualifying investments for a cash component within regulation 8(2)(a), (b) or (e) and qualifying investments for an innovative finance component other than those within regulation 8A(2)(cb), and subject to regulation 15—

• (i) in relation to an account that is not a junior ISA account, the title to all account investments shall be vested in the account manager or his nominee or jointly in one of them and the account investor,

• (ia) in relation to an account that is a junior ISA account, title to all investments shall be vested in the account manager or his nominee or jointly in one of them and either one of the registered contact or named child to the account in question as the account manager considers appropriate, and

• (ii) where a share certificate or other document evidencing title to an account investment is issued, it shall be held by the account manager or as he may direct;

• (ba) that fractional interests are treated as meeting the requirements of sub-paragraph (b)(i) or (ia) if (and only if) the title to the whole share in which the account investor holds a fractional interest meets the requirements of those paragraphs;

• (c) that, in relation to a stocks and shares component, qualifying investments for an innovative finance component , a Lifetime ISA component and qualifying investments falling within sub-paragraph (h) of regulation 8(2), the account manager shall, if the account investor so elects, arrange for the account investor to receive a copy of the annual report and accounts issued to investors by every company, unit trust, open-ended investment company or other entity in which he has account investments;

• (d) that, in relation to a stocks and shares component (excluding an investment in fractional interests), qualifying investments for an innovative finance component , a Lifetime ISA component and qualifying investments falling within sub-paragraph (h) of regulation 8(2), the account manager shall be under an obligation (subject to any provisions made under any enactment and if the account investor so elects) to arrange for the account investor to be able—

• (i) to attend any meetings of investors in companies, unit trusts, open-ended investment companies and other entities in which he has account investments,

• (ii) to vote, and

• (iii) to receive, in addition to the documents referred to in sub-paragraph (c), any other information issued to investors in such companies, unit trusts, open-ended investment companies and other entities;

• (da) that, in relation to investments in fractional interests, where the account investor holds more than one fractional interest in relation to the same investment, the aggregated value of which amounts to at least one whole share (“aggregated whole share”)—

• (i) the obligations under sub-paragraph (d) apply to the manager in relation to the account investor who holds such an aggregated whole share, and

• (ii) the aggregated whole share is subject to the requirements in sub-paragraph (b);

• (e) that the account manager shall satisfy himself that any person to whom he delegates any of his functions or responsibilities under the terms agreed with the account investor is competent to carry out those functions or responsibilities;

• (f) that on the instructions of the account investor (“the transfer instructions”) and within such time as is stipulated by the account investor in the transfer instructions—

• (i) an account, with all rights and obligations of the parties to it, or

• (ii) such parts thereof as may be agreed between the account investor and the account manager,

shall be transferred to another account manager subject to and in accordance with regulation 21 or 21B and, where it applies, regulation 21A;

• (fa) that on the instructions, subject to regulation 9(3)(b), of the account investor (“the withdrawal instructions”) and within such time as is stipulated by the account investor in the withdrawal instructions, account investments, interest, dividends, rights or other proceeds in respect of such investments or any cash shall be transferred or paid to him or, where paragraph 6(12) of the Schedule applies, an eligible conveyancer;

• (g) that the account manager shall notify the account investor if by reason of any failure to satisfy the provisions of these Regulations an account is or will become no longer exempt from tax by virtue of regulation 22(1).

• (7) The time stipulated in the transfer instructions or withdrawal instructions shall be subject to any reasonable business period of the account manager required for the practical implementation of the instructions, but , except in the case of qualifying investments for an innovative finance component within regulation 8A(2)(cb), such period—

• (a) must not exceed 30 days; and

• (b) must be consistent with regulation 21A where it applies.

Where the account is a Lifetime ISA and an amount is being withdrawn for the purpose of a first-time residential purchase by the account investor under paragraph 6 of the Schedule, the period of 30 days referred to in sub-paragraph (a) runs from the date on which the account manager receives the information from the account investor’s conveyancer in accordance with paragraph 8(2) and (3) of the Schedule.

• (8) Where an account holds units in or shares of a UK UCITS, recognised UCITS or non-UCITS retail scheme, and dealings in the units or shares are suspended in accordance with Rule 7.2 of COLL, or any direct foreign equivalent of that Rule, the business period in paragraph (7) may be extended to 7 days after the end of such suspension.

• (9) A Lifetime ISA opened in accordance with regulation 12B is to be treated as such an account notwithstanding that the account investor reaches 50 years of age or over and that no further qualifying addition can be made to the account.

• (10) A Lifetime ISA in relation to which an account manager has received notification of closure within 30 days after the latest applicable cancellation period start date for the purposes of the Conduct of Business Sourcebook (published by the Financial Conduct Authority under FISMA 2000) is to be treated for all purposes of these Regulations as never having been such an account.

• (11) Where a Lifetime ISA is opened (“the new account”) on a transfer from another such account (“the original account”) of the account investor, the latest applicable cancellation period start date for the original account is to be treated for the purposes of paragraph (10) as the latest applicable cancellation start date for the new account.

• (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfers from matured tax-exempt special savings accounts

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General investment rules

6

• (1) Subject to paragraph (1ZB), all transactions by way of purchase by an account manager of investments under an account shall be made—

• (a) in the case of an authorised fund which is a dual priced unit trust, at the manager’s price for the sale of the relevant class of units within the meaning of, and complying with the requirements of, rules 6.3.5 and 6.3.5B of COLL;

• (b) in the case of an authorised fund which is a single priced unit trust or an open-ended investment company, at the price of a unit or share within the meaning of, and complying with the requirements of, rules 6.3.5 and 6.3.5A of COLL; and

• (c) in the case of all other account investments, at the price for which those investments might reasonably be expected to be purchased in the open market.

• (1ZA) In paragraph (1)(a) and (b)—

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “a dual priced unit trust” means an authorised unit trust in respect of which the manager gives different prices for buying and selling units at the same time;

• “a single priced unit trust” means an authorised unit trust in respect of which the manager gives the same price for buying and selling units at the same time.

• (1ZB) Where an investment is made of a kind described in regulation 8A(2)(a), the amount of the payments made pursuant to the article 36H agreement must be such as might reasonably be expected to be made under such an agreement entered into in the open market.

• (2) All other transactions by way of sale or otherwise in an investment under account, and all transactions by way of trade or otherwise by an account manager of an investment in fractional interests—

• (a) shall be made at the price for which those investments might reasonably be expected to be sold or otherwise transacted, as the case may be, in the open market, and

• (b) in the case of transactions in fractional interests, the price shall be proportionate to the size of the fraction relative to the whole share.

• (2A) Where the right to exercise the rights of the lender under an article 36H agreement is sold or otherwise transacted, that sale or transaction must be made at a price for which the investment might reasonably be expected to be sold or otherwise transacted, as the case may be, in the open market.

• (3) Investments, or rights in respect of investments, may not at any time—

• (a) be purchased or made otherwise than out of cash which an account manager holds under an account and component, for which those investments or rights are qualifying investments; or

• (b) be purchased from—

• (i) an account investor, or

• (ii) the spouse or civil partner of an account investor,

so as to become account investments under an account to which the account investor subscribes or has subscribed.

• (4) Subject to paragraphs (5) and (6), cash subscriptions and other cash held by an account manager under an account shall be held only in sterling and be deposited in—

• (i) an account with a deposit-taker (including for this purpose a credit union), or a deposit account or a share account with a building society, or

• (ii) in the case where the account manager is the Director of Savings, an account with the Director of Savings,

which is designated as an ISA account for the purposes of these Regulations only.

• (5) An account manager who is a European institution, a relevant authorised person or an assurance undertaking may hold cash subscriptions and other cash held under an account in the currency of the EEA State in which he has his principal place of business and may deposit such cash in an account, which is designated as mentioned in paragraph (4), with any person authorised under the law of that State to accept deposits.

• (6) Cash by way of dividends, interest, distributions, and other rights or proceeds (including any government bonus) in respect of qualifying investments for any account shall at all times be recorded and accounted for separately from that for any other account, and may be invested only—

• (a) in qualifying investments for the appropriate component; or

• (b) by way of cash deposit in accordance with paragraphs (4) and (5).

Qualifying investments for a stocks and shares component

7

• (1) This regulation specifies the kind of investments (“qualifying investments for a stocks and shares component") which may be purchased, made or held under a stocks and shares component, and in this regulation and regulations 31 and 34, “shares" without more includes stock.

• (2) Qualifying investments for a stocks and shares component to which paragraph (1) refers are—

• (a) subject to paragraphs (2B) and (2C), shares, not being shares in an investment trust—

• (i) issued by a company wherever incorporated, and

• (ii) subject to paragraph (3), either officially listed on a recognised stock exchange or, in the United Kingdom or the European Economic Area, admitted to trading on a recognised stock exchange. ...

• (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) securities (“qualifying securities")—

• (i) issued by a company wherever incorporated, and

• (ii) where the securities in question satisfy at least one of the conditions specified in paragraph (5).

• (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) gilt-edged securities...;

• (ca) any securities issued by or on behalf of the government of the United Kingdom or a government of any EEA State...;

• (cb) any securities which, in relation to a security mentioned in sub-paragraph (ca), would be a strip of that security if “strip” had the same meaning as in section 47 of the Finance Act 1942, with the omission of the words “issued under the National Loans Act 1968”;

• (cc) securities issued by a multilateral institution, contributions to which may be reported as official development assistance, listed in Part I of Annex 2 to the DAC Statistical Reporting Directive (approved by the Development Assistance Committee of the Organisation for Economic Co-operation and Development), where the securities satisfy the condition in paragraph (5)(b)...;

• (d) subject to paragraph (3), and subject to paragraphs (2B) and (2C), shares in an investment trust listed or admitted to trading on a recognised stock exchange;

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) units in, or shares of, a UK UCITS or recognised UCITS...;

• (g) qualifying units in or shares of a non-UCITS retail scheme...;

• (ga) subject to paragraphs (2B) and (2C), shares of a UK UCITS, a recognised UCITS or a non-UCITS retail scheme that are listed on or admitted to trading on a recognised stock exchange;

• (h) subject to the conditions specified in paragraph (10)—

• (i) shares which the qualifying individual has exercised the right to acquire in accordance with the provisions of a Schedule 3 SAYE option scheme,

• (ii) shares which have been appropriated to the qualifying individual in accordance with the provisions of an approved profit sharing scheme, or

• (iii) plan shares of a Schedule 2 SIP which cease to be subject to the plan but have remained in the beneficial ownership of the participant,

and such shares shall be treated as fulfilling the condition as to payment of cash in regulation 4(1B)(d);

• (ha) a depositary interest;

• (j) cash deposited in accordance with regulation 6(4) to (6)... ;

• (k) investments which—

• (i) were held under a stocks and shares component or a personal equity plan on 28th November 2001,

• (ii) on that date were admitted to trading on a recognised stock exchange in an EEA State and were not listed by a competent authority in an EEA State for the purposes of Council Directive 2001/34,

• (iii) since that date have not ceased to be so admitted and have not become so listed,

• (iv) do not fall within any of the other sub-paragraphs of this paragraph, and

• (v) are not investments which, having fallen within any of those sub-paragraphs, have ceased so to fall on or after that date.

• (l) investments which—

• (i) were held under the stocks and shares component or a personal equity plan on 6th April 2004; and

• (ii) immediately before that date, fell within sub-paragraphs (e), (f) or (g), or sub-paragraph (ha) so far as the relevant investments (within the meaning in the definition of “depositary interest”) fell within any of those sub-paragraphs.

• (m) units in a relevant collective investment scheme specified as a stakeholder product by regulation 5 of the Stakeholder Products Regulations...;

• (n) policies of life insurance falling within regulation 9, issued in respect of an insurance made on or after 6th April 2005...;

• (o) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (p) in the case of a personal equity plan which is treated on and from 6th April 2008 as a stocks and shares account, investments which, immediately before that date, were qualifying investments for the plan under regulation 6(2)(m) of the Personal Equity Plan Regulations 1989;

• (q) core capital deferred shares within the meaning of regulation 2 of the Building Societies (Core Capital Deferred Shares) Regulations 2013, provided that such shares are listed on the official list of a recognised stock exchange.

• (r) an interest in a fraction of a share where the account investor holds the beneficial interest in a fraction that is less than one whole share under the terms which are contained in a contractual arrangement between the account investor and the account manager (“fractional interest”).

• (2A) Notwithstanding any provision of paragraph (1), investments which—

• (a) are held by an account investor under a stocks and shares component on the coming into force of this paragraph; and

• (b) immediately beforehand fell within paragraph (2)(f) by virtue of being units in, or shares of, a recognised UCITS,

are to be treated, for as long as they are so held, as qualifying investments for the stocks and shares component.

• (2B) An interest in a fraction of a qualifying investment falling within any of sub-paragraphs (a) to (ha) of paragraph (2) is not a qualifying interest for the stocks and shares component unless it is a fractional interest within the meaning of sub-paragraph (r) of that paragraph.

• (2C) In sub-paragraph (r) of paragraph (2), “shares” means shares which are qualifying investments in accordance with sub-paragraphs (a), (d) or (ga) of that paragraph.

• (2D) Notwithstanding any provision of paragraph (1), investments which—

• (a) immediately before 1st October 2024 fell within paragraph (2)(f) by virtue of being units in, or shares of, a recognised UCITS, or

• (b) qualify under paragraph (2)(f) by virtue of being part of an umbrella scheme that immediately before 1st October 2024 fell within that paragraph by virtue of being units in, or shares of, a recognised UCITS,

are to be treated, until the end of 31st December 2026, as qualifying investments for the stocks and shares component.

• (2E) Paragraph (2A) ceases to have effect at the end of 31st December 2026.

• (3) An investment in shares fulfils the conditions as to official listing and admission to trading in paragraph (2)(a), (d) or (ga), if—

• (a) in pursuance of a public offer, the account manager applies for the allotment or allocation to him of shares in a company or trust ... which are due to be admitted to such listing or admitted to such trading within 30 days of the allocation or allotment, and which, when admitted to such listing or trading, would be qualifying investments for a stocks and shares component, and

• (b) the shares are not allotted or allocated to the account manager in the circumstances specified in paragraph (4).

• (4) The circumstances specified in this paragraph are where—

• (a) the allotment or allocation of the shares was connected with the allotment or allocation of—

• (i) shares in the company or trust of a different class, or

• (ii) rights to shares in the company or trust of a different class, or

• (iii) shares or rights to shares in another company or trust, or

• (iv) units in or shares in, or rights to units in or shares in, an authorised fund or a part of an umbrella scheme, or

• (vi) securities or rights to securities of the company or trust, or of another company or trust,

to the account manager, the account investor or any other person; and

• (b) the terms on which the first-mentioned shares in this paragraph were offered were significantly more favourable to the account manager or account investor than they would have been if their allotment or allocation had not been connected as described in sub-paragraph (a).

• (5) The conditions specified in this paragraph are—

• (a) that the shares in the company issuing the securities are listed on the official list of a recognised stock exchange;

• (b) that the securities are so listed;

• (c) that the company issuing the securities is a 75% subsidiary of a company whose shares are so listed;

• (d) that the shares in the company issuing the securities are admitted to trading on a recognised stock exchange in the United Kingdom or the European Economic Area;

• (e) that the securities are so admitted to trading;

• (f) that the company issuing the securities is a 75% subsidiary of a company whose shares are so admitted to trading.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) The conditions specified in this paragraph are—

• (a) in relation to shares which the individual has exercised his right to acquire in accordance with the provisions of a Schedule 3 SAYE option scheme, that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the exercise of that right;

• (b) in relation to shares appropriated to the individual in accordance with the provisions of an approved profit-sharing scheme, that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the date when the individual directed the trustees to transfer the ownership of the shares to him or, if earlier, the release date in relation to the shares;

• (ba) in relation to plan shares mentioned in paragraph (2)(h)(iii), that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the date when the plan shares ceased to be subject to the plan;

• (c) that the aggregate market value at the date of transfer of any shares transferred to the account manager or his nominee in accordance with sub-paragraphs (a), (b) or (ba) in any year, and the individual’s cash subscriptions in that year to that account, do not together exceed the overall subscription limit in regulation 4ZA(1) in that year, reduced by the subscriptions by the individual in that year to a cash account.

• (11) In paragraph (4)(a), “company" means any body corporate having a share capital.

• (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (13) The references to “shares” in paragraphs (2)(h) and (10) shall include references to a depositary interest where the relevant investments in question (referred to in paragraphs (a) and (b) of the definition of “depositary interest”) are shares falling within both paragraphs (2)(h) and (10).

• (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (16) In this regulation, references, in relation to qualifying investments, to the value, are to be construed in accordance with regulation 6(2), but deducting the incidental costs that would be incurred by a disposal and, in the case of a policy of life insurance, omitting any benefits payable in the event of the death of the account investor.

• (17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying investments for a cash component

8

• (1) This regulation specifies the kind of investments (“qualifying investments for a cash component") which may be purchased, made or held under a cash component.

• (2) Qualifying investments for a cash component to which paragraph (1) refers are, subject to paragraph (3)—

• (a) cash deposited in a deposit account with—

• (i) a building society,

• (ii) a credit union,

• (iii) a bank, other than of a type at paragraph (a), (d) or (e) of section 991(2) of the ITA 2007, ...

• (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) cash deposited in a share account with a building society;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) such investment deposits with the National Savings Bank which, according to the terms and conditions subject to which they are made, are expressly permitted to be held under a cash component of an account;

• (f) any securities issued under the National Loans Act 1968–

• (i) for the purpose of or in connection with raising money under the auspices of the Director of Savings within the meaning of section 11(1)(a) of the National Debt Act 1972, and

• (ii) other than national savings certificates, premium savings bonds, national savings stamps and national savings gift tokens,

which, according to the terms and conditions subject to which they are issued and purchased, are expressly permitted to be held under a cash component of an account.

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (h) a depositary interest (with the references in that definition to a stocks and shares component and to regulation 7(2)(a) to (h) being replaced with references to a cash component and to regulation 8(2)(a) to (f)).

• (j) a deposit account specified as a stakeholder product by regulation 4 of the Stakeholder Products Regulations;

• (k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (l) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (n) arrangements falling within section 47 of the Finance Act 2005 (alternative finance arrangements) under which the person referred to in that section as Y is a financial institution;

• (o) arrangements falling within section 49 of that Act;

• (p) a short-term money market fund which meets the conditions in COLL section 5.9.3.R;

• (q) a money market fund which meets the conditions in COLL section 5.9.5R.

• (3) A deposit account or share account which is a qualifying investment for a cash component falling within sub-paragraphs (a) or (b) of paragraph (2) respectively (“Account A”) must not be connected with any other account falling within the descriptions in those sub-paragraphs (“Account B”), held by the account investor or any other person.

• (4) For the purposes of paragraph (3), Account A is connected with Account B if all of the following circumstances apply—

• (a) either of the accounts was opened with reference to the other, or with a view to enabling the other to be opened on particular terms, or with a view to facilitating the opening of the other on particular terms,

• (b) the terms on which Account A was opened would have been significantly less favourable to the holder if Account B had not been opened, and

• (c) Account B is not a tax exempt account.

• (5) The following are tax exempt accounts for the purposes of paragraph (4)—

• (a) an account opened (or treated as opened) in accordance with regulation 12 or 12A;

• (b) a child trust fund; and

• (c) a CTF matured account

Qualifying investments for an insurance component

9

• (1) Policies referred to in regulation 7(2)(n) or (o) ... must, subject to compliance with paragraphs (4) to (9) as appropriate, satisfy the conditions specified in paragraph (3).

• (2) In paragraph (1) “policies” includes rights under a linked long-term contract specified as a stakeholder product by regulation 6 of the Stakeholder Products Regulations.

• (3) The conditions specified in this paragraph are that—

• (a) the insurance is on the life of the account investor only;

• (b) the terms and conditions of the policy provide—

• (i) that the policy may only be owned or held as a qualifying investment for ...an account which satisfies the provisions of these Regulations;

• (ii) in the case of a policy that is held under an account that is not a junior ISA account, that the policy shall automatically terminate if it comes to the notice of the account manager, in any manner, that either of the events specified in paragraph (8) has occurred in relation to the policy;

• (iia) in the case of a policy that is held under an account that is a junior ISA account, that the policy shall automatically terminate if it comes to the notice of the account manager, in any manner, that the event specified in paragraph (8A) has occurred in relation to the policy;

• (iii) subject to paragraph (3B), for an express prohibition of any transfer, assignment or (in Scotland) assignation of the policy to the account investor who holds the account under which the policy is held or, in the case of a policy held under an account that is a junior ISA account, the registered contact or named child in relation to that account;

• (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) the policy evidences or secures a contract of insurance which—

• (i) falls within paragraph I or III of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, or

• (ii) would fall within either of those paragraphs if the insurer was a company with permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;

• (d) the policy is not—

• (i) a contract to pay an annuity on human life, or

• (ii) a personal portfolio bond within the meaning given by section 516 of ITTOIA 2005, or

• (iii) a contract, the effecting and carrying out of which constitutes “pension business" within the meaning given by section 431B(1) of the Taxes Act ; and

• (e) after the first payment in respect of a premium in relation to the policy has been made, there is no contractual obligation on any person to make any other such payment.

• (3A) In paragraphs (3)(b)(iii) and (3B), “policy” includes—

• (a) the rights conferred by a policy; and

• (b) any share or interest in the rights conferred by a policy.

• (3B) The prohibition required by paragraph (3)(b)(iii) must not prohibit—

• (a) the cash proceeds from the termination of the policy or a partial surrender of the policy ownership—

• (i) being paid to the account investor where the policy is held under an account that is not a junior ISA account;

• (ii) being withdrawn in accordance with regulation 4ZD (permitted withdrawals from a junior ISA account) or 4ZE (permitted withdrawals from a junior ISA account where the named child is terminally ill);

• (b) the transfer of title to the policy so that it is vested as required from time to time by regulations 4(6)(b)(i) and (ia) (general conditions for accounts) and 15(a) (special provisions relating to insurer-managers) by virtue of—

• (i) a transfer of an account in accordance with regulations 21 or 21B;

• (ii) a change of registered contact in relation to a junior ISA account; or

• (iii) an account ceasing to be a junior ISA account upon the named child in relation to the account attaining 18 years;

• (c) the vesting of the policy in the personal representatives of the account investor.

• (4) A policy ...must not be connected with any other policy (“the linked policy"), held by the account investor or any other person, and for this purpose a policy is connected with another if—

• (a) either policy was issued in respect of an insurance made with reference to the other, or with a view to enabling the other to be made on particular terms, or with a view to facilitating the making of the other on particular terms, and

• (b) the terms on which the first-mentioned policy in this paragraph was issued would have been significantly less favourable to the holder if the linked policy had not been issued.

• (5) References to “the linked policy" in paragraph (4) shall include a contract of insurance, and references to the issuing of the linked policy shall include the making of such a contract.

• (6) No sum may at any time, at or after the making of the insurance, be lent to or at the direction of the account investor by or by arrangement with the insurer for the time being responsible for the obligations under the policy.

• (7) Where any of the events specified in paragraphs (8) or (8A) occurs in relation to a policy, the policy shall nevertheless be treated, for the purposes of these Regulations, excepting paragraphs (3)(b)(ii) and (iia), (8) and (8A) and regulation 36, as if it had satisfied the conditions in paragraph (3)(b)(i) during the period–

• (a) commencing at the time at which the specified event occurred, and

• (b) ending immediately before–

• (i) the end of the final insurance year in relation to the policy, within the meaning given by section 499 of ITTOIA 2005, or

• (ii) the time at which the specified event came to the notice of the account manager,

whichever first occurs (the “termination event”).

• (8) The events specified in this paragraph are–

• (a) that the policy has ceased to be one in respect of which the conditions in paragraph (3)(b)(i) are satisfied; and

• (b) that those conditions were not satisfied in relation to the policy at the date on which the insurance was made.

• (8A) The event specified in this paragraph is that—

• (a) the policy has ceased to be one in respect of which the conditions in paragraph (3)(b)(i) are satisfied or those conditions were not satisfied in relation to the policy at the date on which the insurance was made; and

• (b) the breach or non-compliance cannot be remedied in accordance with regulation 21C or has not been remedied within a reasonable time.

• (9) Where–

• (a) it comes to the notice of the account manager, in any manner, that an event specified in paragraph (8) or (8A) has occurred in relation to a policy, and

• (b) the account manager is not the insurer for the time being responsible for the obligations under the policy or, where the policy is not still in existence, the person who was the last such insurer,

the account manager shall, within 30 days of the event coming to his notice, give notice to that insurer, specifying the event mentioned in sub-paragraph (a), and the termination event.

Qualifying individuals who may invest under an account

10

• (1) This regulation specifies the description of individual (“qualifying individual”) who may invest under an account that is not a junior ISA account nor a Lifetime ISA.

• (2) A qualifying individual to whom paragraph (1) refers is an individual—

• (a) who is 18 years of age or over;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (cza) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ca) who has not exceeded the ... overall subscription limit in regulation 4ZA(1)... in that year;

• (d)

• (i) who is resident ... in the United Kingdom, or

• (ii) who, though not resident in the United Kingdom, has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003, or

• (iii) who, though not resident in the United Kingdom, is married to or in a civil partnership with a person mentioned in paragraph (ii); or

• (iv) who, where the terms and conditions of an account allow for it, though not resident in the United Kingdom, makes a subscription to the account in accordance with regulation 5D.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Account investor ceasing to qualify

11

Notwithstanding any other provision of these Regulations an account investor who, after subscribing or making a qualifying addition to an account, at any time ceases to fulfil the conditions of regulation 10(2)(d) or 10A(2)(f), as the case may be, may retain the benefits of the account (including the right to any relief or exemption due under the account) subsisting at that time but, so long as he fails to fulfil those conditions, shall not be entitled to subscribe further or make a qualifying addition to such an account.

Conditions for application to subscribe to an account

12

• (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).

• (2) An application must specify the first year to which the application relates.

• (3) An application must contain a declaration by the applicant that—

• (a) his application is to open a stocks and shares account, cash account or innovative finance account, as the case may be;

• (b) the declaration shall have effect for the year to which paragraph (2) refers, and each successive year following that year, until the account is closed;

• (c) all cash subscriptions made, and to be made, to the account are the applicant’s cash;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ea) that the applicant has not subscribed, and will not subscribe, more than the ... overall subscription limit in regulation 4ZA(1) (aggregating subscriptions to all accounts)—

• (i) in the year to which paragraph (2) refers, and

• (ii) in each successive year following that year, in which the declaration has effect;

• (eb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) the applicant is 18 years of age or over, and except in relation to a subscription made in accordance with regulation 5D or 5DZ into an account opened solely to receive such a subscription—

• (i) is resident ... in the United Kingdom, or

• (ii) is a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003, or

• (iii) is married to or in a civil partnership with a person mentioned in paragraph (ii),

and will inform the account manager if he ceases to be so resident ..., or to perform such duties, or to be married to or in a civil partnership with a person who performs such duties, as the case may be;

• (fa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) An application must contain—

• (a) the applicant’s full name,

• (b) the address of his permanent residence, including postcode,

• (c) his national insurance number or, where applicable, confirmation that the applicant does not qualify for a national insurance number, ...

• (d) his date of birth,

• (e) the authorisation specified in paragraph (4A)

• (4A) The authorisation specified by this paragraph is authority given by the applicant to the account manager—

• (a) to hold the subscriptions, account investments, interest, dividends and any other rights or proceeds in respect of those investments and cash;

• (b) to make on behalf of the applicant any claims to relief from tax in respect of account investments; and

• (c) to make a record in writing in accordance with paragraph (7) where that paragraph requires the account manager to do so.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) An account manager may not accept as an account investor any individual if he has reason to believe that—

• (a) he is not or might not be a qualifying individual, or

• (b) he has given untrue information in his application.

• (7) Where an application is not in writing or the manager operates a record system under which all original written applications are not retained—

• (a) the account manager must, immediately after receiving the application, record in writing on behalf of the applicant, the declaration required by paragraph (3) and authorisation required by paragraphs (4)(e) and (4A);

• (b) the account manager must notify the applicant of the contents of the written record within 5 business days of making it; and

• (c) the written record (as amended by any corrections notified to the account manager by the applicant within 30 days of the notification mentioned in sub-paragraph (b)) shall be treated as the applicant’s declaration required by paragraph (3) and authorisation required by paragraphs (4)(e) and (4A).

• (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) Section 95 of the Management Act shall have effect as if—

• (a) the statement and declarations to which paragraphs (1), (3) and (7) refer were a statement or declarations, as the case may be, within the meaning of subsection (1)(b), and

• (b) there were substituted for subsection (3) the following words—

(3) The relevant years of assessment for the purposes of this section are the year of assessment in respect of which any claim to relief or exemption from tax in connection with which the statement or declarations are relevant, is made, the next following, and any preceding year of assessment.

• (9) An application furnished by an individual under this regulation ... shall be regarded as in writing if it is furnished—

• (a) by telephonic facsimile transmission containing the signature of the individual, or

• (b) by electronic communication containing an electronic signature of the individual.

• (10) Where an account manager is required by paragraph (7) to make a record in writing—

• (a) a record shall be regarded as being a written record if it is produced by electronic means;

• (b) the notification of the contents of the record by the account manager to the applicant required by paragraph (7)(b) may be sent to the applicant by telephonic facsimile transmission or by electronic communication.

• (11) In this regulation—

• “electronic communication” includes any communication conveyed by means of an electronic communications network.

• “electronic signature” has the meaning given by section 7(2) of the Electronic Communications Act 2000.

• (11A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) An application may be made on an individual’s behalf —

• (a) if the individual is resident in England and Wales—

• (i) pursuant to an order under section 16(2)(a) of the Mental Capacity Act 2005; or

• (ii) by a deputy appointed under section 16(2)(b) of that Act; or

• (b) if the individual is resident in Scotland or Northern Ireland and is suffering from mental disorder, by a parent, guardian, spouse, civil partner, son or daughter of the individual.

• (13) In paragraph (12) “mental disorder” has the meaning given by ... in Scotland, section 328 of the Mental Health (Care and Treatment) (Scotland) Act 2003 or, in Northern Ireland, Article 3 of the Mental Health (Northern Ireland) Order 1986.

• (14) This regulation does not apply to a Lifetime ISA.

Application by curator bonis

13

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Account manager—qualifications and Board’s approval

14

• (1) This regulation specifies the circumstances (“qualifying circumstances") in which a person may be approved by the Board as an account manager.

• (2) The qualifying circumstances to which paragraph (1) refers are the following—

• (a) the person must make an application to the Board for approval in a form prescribed by the Board;

• (aa) if the person intends to be an account manager in relation to a junior ISA account, the person must undertake to the Board to—

• (i) publicise (and update where appropriate) statements of the minimum amount which may be subscribed to a junior ISA account on a single occasion, and the permitted means of payment of subscriptions; and

• (ii) inform persons proposing to make a subscription to a junior ISA account (other than the named child) that the subscription is a gift to the child;

• (b) an account manager must be—

• (i) an authorised person within the meaning of FISMA 2000 who has permission (other than an interim permission) to carry on one or more of the activities specified in Articles 14, 21, 25, 36H, 37, 39G, 40, 45, 51ZA, 51ZC, 51ZE and 53 and, in so far as it applies to any of those activities, Article 64 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 but excluding any person falling within paragraph (iv) below; or

• (ii) a European institution which carries on one or more of those activities; or

• (iia) in the case of a credit union, an authorised person within the meaning of FISMA 2000, who has permission to carry on one or more of the activities specified in Article 5 of the Financial Services And Markets Act 2000 (Regulated Activities) Order 2001;