The Individual Savings Account Regulations 1998

• (e) “invalid account” means a scheme of investment which is not exempt from tax under these Regulations but which (if so exempt) would be an account, within the meaning in regulation 4(1A)(a) and, in relation to an invalid account, references to an account and component have corresponding meanings; and

• (f) (for the avoidance of doubt) “repair” of an account is without prejudice to loss of, and accounting to the Board for, any relief from tax given for the period up to the date of discovery.

• (3) An invalid account which is eligible for repair shall be treated as—

• (a) exempt from tax under this regulation (as if under regulation 22), and

• (b) complying with the overall subscription limit in regulation 4ZA(1),

as from the date of discovery, to the extent of the relevant proportion mentioned in paragraph (4)(b).

• (4)

• (a) Calculate the extent to which the subscriptions made (and counting towards the subscription limit) during the relevant year—

• (i) to that account, any other account which is eligible for repair, and any valid account (but ignoring subscriptions to any closed account...) do not exceed,

• (ii) the subscriptions limit in regulation 4ZA(1)... , and

• (b) an officer of the Board shall apportion that result between the accounts mentioned in sub-paragraph (a)(i), and the amount apportioned to the account mentioned in paragraph (3) is the relevant proportion.

• (5) The account manager must comply within 30 days with any directions in the notice of discovery which—

• (a) make the apportionment under paragraph (4)(b) and identify the account and component from which excess subscriptions or allocations (if any) are to be removed;

• (b) direct the removal of subscriptions and proceeds representing them from an account; or

• (c) direct the removal of subscriptions and proceeds representing them from a component.

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

• (7) This regulation is subject to regulation 4AA.

Closure of mini-account or TESSA only account prior to the opening of the same type of account to be disregarded once

4B

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

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Qualifying investments for an insurance component

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfer of accounts to other account managers

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component or insurance component

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act to policies where an investor ceases to be or was not entitled to relief from tax

Removal of insurance components at 6th April 2005

4C

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

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfer of accounts to other account managers

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act to policies where an investor ceases to be or was not entitled to relief from tax

Repair of certain incompatible accounts and excess subscriptions

Closure of cash account prior to the opening of the same type of account to be disregarded once

Removal of maxi-accounts, mini-accounts and TESSA only accounts at 6th April 2008

4D

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

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfers relating to accounts

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Treatment of certain sums held in accounts managed by Northern Rock plc

5A

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

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfers relating to accounts

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Treatment of sums held in accounts managed by Icesave Bank

Treatment of certain sums held in accounts managed by Keydata Investment Services Limited

5B

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

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfers relating to accounts

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Further requirements relating to transfers between cash accounts

21A

• (1) This regulation applies where an account investor, through the agency of an account manager (“the transferee”), gives instructions (“transfer instructions”) to an account manager with whom the account investor holds a cash account (“the transferor”) for that account or part of that account to be transferred, subject to and in accordance with regulations 21 or 21B, to a cash account held by the account investor with the transferee.

• (2) Where this regulation applies—

• (a) the transferee shall, within 5 business days beginning on the instruction day, send to the transferor—

• (i) the transfer instructions; and

• (ii) a notice specifying that the transferee consents to the transfer (“the consent notice”);

• (b) the transferor shall, within 5 business days beginning on the day that the transferor receives the transfer instructions and the consent notice,—

• (i) transfer to the transferee the subscriptions specified in the transfer instructions; and

• (ii) send to the transferee a notice containing the information specified in paragraph (3); and

• (c) the transferee shall ensure that the subscriptions specified in the transfer instructions are transferred to a cash account held by the account investor with the transferee within 3 business days beginning on the day that the transferee receives the subscriptions and the notice referred to in sub-paragraph (b)(ii).

• (3) The information specified in this paragraph is—

• (a) as regards the account investor—

• (i) the full name of the account investor,

• (ii) the address of the account investor’s permanent residence, including postcode,

• (iii) the date of birth of the account investor, and

• (iv) the national insurance number of the account investor (if any), ...

• (b) as regards the cash account or any part of the cash account—

• (i) the date of the transfer,

• (ii) subject to paragraph (3ZA), the total amount of cash subscribed to the account during the period from the beginning of the year in which the transfer takes place to the date of the transfer, disregarding a subscription made in accordance with regulation 5D (except for a replacement subscription), less, in the case of a flexible account, the amount of any cash withdrawn from it during that period and if the result is in the negative, the amount to be reported is nil,

• (iii) subject to paragraph (3ZA), in relation to the transfer of an account that is not a junior ISA account, the date on which the first subscription (if any) was made to the account in the year in which the transfer takes place,

• (iiia) in relation to the transfer of an account that is a junior ISA account, the date on which the subscription described in paragraph (3A) was made (if appropriate), ...

• (iv) the reference number or other means used by the transferor to identify the account belonging to the account investor in respect of which the transfer is made, and

• (v) whether the account is a continuing account of a deceased investor; and

• (c) in relation to an account that is a junior ISA account—

• (i) the full name of the registered contact,

• (ii) the address of the registered contact’s permanent residence, including postcode.

• (3ZA) But there is no obligation to provide the information specified in paragraph (3)(b)(ii) or (iii) where, in relation to an account—

• (a) there is a transfer in part of the current year’s subscriptions, and

• (b) a current year’s subscription remains with the transferor after the transfer.

• (3A) The subscription referred to in paragraph (3)(b)(iiia) is the first subscription to the account provided the subscription is made in the same year as the transfer.

• (4) For the purposes of paragraph (2)(a) and (b), the transfer instructions and the notices (as appropriate) shall be treated as sent if they are—

• (a) posted to, or left at, the proper address of the transferor or the transferee (as appropriate); or

• (b) transmitted by electronic communication.

• (5) For the purposes of paragraph (2)(b), where the transferor receives the transfer instructions and consent notice on different days, they must both be treated as received on the latest of those days.

• (6) For the purposes of paragraph (2)(c), where the transferee receives subscriptions specified in the transfer instructions and the notice described in paragraph (2)(b) on different days, they must all be treated as received on the latest of those days.

• (7) In this regulation—

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

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

• “instruction day” means—the day stipulated by the account investor for the transferee to begin the transfer process, orif no day is stipulated, the day that the transfer instructions are received by the transferee;

• “subscriptions” means the current year’s subscriptions and the previous years’ subscriptions as described in regulation 21(1).

• (8) For the purposes of this regulation—

• (a) a document is “posted” if it is sent pre-paid by a postal service which seeks to deliver documents by post within the United Kingdom no later than the next business day in all or the majority of cases, and to deliver by post outside the United Kingdom within such a period as is reasonable in all the circumstances; and

• (b) the “proper address” to which a document is to be sent is any current address provided by the transferor or transferee as an address for service of such documents, but if no current address is provided then it shall be the address of its registered or principal office in the United Kingdom.

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Treatment of certain sums held in dormant accounts

5C

• (1) Regulations 30 and 31 (information by account managers) shall not apply to a dormant account, while section 1 or 2 of the Dormant Bank and Building Society Accounts Act 2008 (“the 2008 Act”) or sections 2, 5, 8, 12 or 14 of the Dormant Assets Act 2022 applies in relation to that account.

• (2) Where, following a repayment claim, the balance of a dormant account is paid—

• (a) back into the account (in a case where the original ... account can be reinstated with the same account manager, the same account investor and number), or

• (b) into another ... account in the same account investor’s name ... (in any other case),

the payment into the account shall not count towards the subscription limit in regulation 4ZA(1).

• (3) In this regulation, “repayment claim” means a repayment claim mentioned in section 5(6) of the 2008 Act, and other terms used in this regulation and that Act have the same meaning in this regulation as in that Act.

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account

Account investor ceasing to qualify

Conditions for application to subscribe to an account

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfers relating to accounts

Further requirements relating to transfers between cash accounts

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component...

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—annual returns and annual claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Meaning of account investor

2A

• (1) This regulation makes provision for the meaning of “account investor” in these Regulations.

• (2) In relation to an account that is not a junior ISA account nor a Lifetime ISA, “account investor” means an individual who subscribes to an account and who is a qualifying individual within the meaning of regulation 10.

• (3) In relation to a junior ISA account, “account investor” has different meanings in relation to the application of the regulations specified in paragraphs (4) and (5) as provided for in those paragraphs.

• (4) For the purposes of the application of regulations 5C, 5D to 5DC, 5DF, 6(3), 7, 8, 9 (other than regulation 9(3)(b)(iii) and (6)), 21A(1) (other than its first occurrence therein), 21A(2) and (3), 22, 24, 28, 31, 34, 35 (other than regulation 35(10)) and 36, “account investor” means the named child in relation to the account in question.

• (5) For the purposes of the application of regulations 4, 9(6), 15, 17, 19, 20, 21A(7), 35(10) and its first occurrence in regulation 21A(1), “account investor” means the registered contact in relation to the account in question.

• (6) In relation to a Lifetime ISA, “account investor” means an individual who—

• (a) makes, or has made, a qualifying addition to a Lifetime ISA, and

• (b) at the time of each qualifying addition by the individual into the Lifetime ISA, is a Lifetime ISA qualifying individual.

Meaning of junior ISA account

2B

In these Regulations—

• (a) an account opened pursuant to a junior ISA application described in regulation 12A is a junior ISA account at any time when it is held by a child;

• (b) references to “account” shall be construed as including a reference to an account that is a junior ISA account except where the context otherwise requires; and

• (c) references to an account held by a child are references to an account in respect of which the child is the beneficial owner of the account investments under that account.

Meaning of “registered contact” etc.

2C

• (1) In these Regulations “registered contact” means the person who may give instructions in respect of the management of a junior ISA account to the person who is the account manager in relation to that account.

• (2) The person who may give instructions in respect of the management of a junior ISA account to the account manager of that account is—

• (a) the named child who holds the account if the application to open the account in accordance with regulation 12A was made by that child,

• (b) the named child who holds the account if—

• (i) the child has attained the age of 16 years,

• (ii) paragraph (3) does not apply in relation to the child, and

• (iii) the child has assumed responsibility for the management of the account in accordance with paragraph (6), or

• (c) in any other case, the responsible person in relation to the account.

• (3) For the purposes of paragraph (2)(b)(ii) this paragraph applies in relation to the child—

• (a) if the child is resident in England and Wales and lacks capacity in relation to the management of the junior ISA account under section 2(1) of the Mental Capacity Act 2005;

• (b) if the child is resident in Scotland, the child is suffering mental disorder within the meaning given by section 328 of the Mental Health (Care and Treatment) (Scotland) Act 2003;

• (c) if the child is resident in Northern Ireland, the child is suffering mental disorder within the meaning given by Article 3 of the Mental Health (Northern Ireland) Order 1986.

• (4) A person is the responsible person in relation to a junior ISA account if—

• (a) that person—

• (i) makes the application to open the account in question in accordance with regulation 12A; or

• (ii) assumes responsibility for the management of the account in accordance with paragraph (6); and

• (b) that person has parental responsibility in relation to the named child who holds the account at the time when that person—

• (i) makes the application described in sub-paragraph (a)(i); or

• (ii) assumes responsibility for the management of the account as described in sub-paragraph (a)(ii).

• (5) A person ceases to be the person who may give instructions in respect of the management of a junior ISA account to the person who is the account manager in relation to that account when another person assumes responsibility for the management of the account in accordance with paragraph (6).

• (6) A person assumes responsibility for the management of a junior ISA account if—

• (a) the person makes an application to assume responsibility for the management of the account in accordance with paragraph (7), and

• (b) the account manager of the account in question accepts the application.

• (7) An application by a person (“the applicant”) to assume responsibility for the management of a junior ISA account must—

• (a) be made to the account manager of the account in question;

• (b) contain—

• (i) the applicant’s full name,

• (ii) the applicant’s address (including postcode),

• (iii) the named child’s full name and date of birth,

• (iv) the named child’s address (including postcode),

• (v) the named child’s national insurance number if the child is over 16 and has been issued with a national insurance number, and

• (vi) the authorisation specified in paragraph (8);

• (c) contain a declaration by the applicant that the applicant—

• (i) is 16 years of age or over,

• (ii) is the named child who holds the account in question or has parental responsibility in relation to the named child who holds the account in question, and

• (iii) is to be the registered contact for the account.

• (8) The authorisation specified by this paragraph is authority given by the applicant to the account manager (on behalf of the named child who holds the account where appropriate)—

• (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 named child any claims to relief from tax in respect of account investments; and

• (c) to make a record in writing in accordance with paragraph (11) where that paragraph requires the account manager to do so.

• (9) An account manager must not accept an application to assume responsibility for the management of a junior ISA account if—

• (a) except in the circumstances specified in paragraph (10), the person who is the registered contact in relation to the account at the time when the application is made does not consent to the applicant assuming responsibility for the management of the account; or

• (b) the account manager has reason to believe that the applicant has given untrue information in the application.

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

• (a) the death of the most recent registered contact,

• (b) the incapacity of the registered contact,

• (c) where the registered contact cannot be contacted,

• (d) the bringing to an end of a Court order under which the registered contact is a responsible person,

• (e) where the applicant is the named child who holds the account and is aged 16 or over,

• (f) where, under an adoption order, the applicant is the adopter of the named child who holds the account,

• (g) where a Court so orders,

• (h) where the applicant has been appointed to be a guardian or special guardian of the named child who holds the account.

• (11) Where the application to assume responsibility for the management of a junior ISA account is not in writing or the account 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 (7)(c) and the authorisation required by paragraphs (7)(b)(vi) and (8);

• (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 (7)(c) and authorisation required by paragraphs (7)(b)(vi) and (8).

Regulations that do not apply to junior ISA accounts

2D

Regulations 4(6)(fa), 4ZA, 4A, 4AA, ... ...... 5DDA, 5DDB, 5DDC, 5DI to 5DM, 7(2)(h), 8ZA, 8A, 10 to 12, 12B, 21... and 30, do not apply to a junior ISA account.

Contracts entered into by or on behalf of a child who is 16 or over

2E

Where, by virtue of the opening of an account pursuant to a junior ISA application described in regulation 12A, a contract is entered into by a child who is—

• (a) aged 16 or over; and

• (b) the child who—

• (i) holds the account, or

• (ii) has parental responsibility in relation to the child who holds the account,

the contract has effect as if the child who opened the account had been 18 or over when the contract was entered into.

Introductory

General conditions for accounts and subscriptions to accounts

Subscriptions to an account other than a junior ISA account

4ZA

• (1) The overall subscription limit for any qualifying individual for any year (that is the aggregate of the qualifying individual’s subscriptions to all accounts that are not junior ISA accounts in that year) is £20,000.

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

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

• (1A) The overall Lifetime ISA payment limit in respect of current year payments for any Lifetime ISA qualifying individual for any year is £4,000.

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

• (3) A qualifying individual may not subscribe to an account that was a junior ISA account while it was held by the qualifying individual as the named child for the account unless the account manager of that account has been provided with—

• (a) the qualifying individual’s national insurance information specified by paragraph (4);

• (b) a declaration specified by paragraph (5);

• (c) the authorisation specified by paragraph (6); and

• (d) if the account manager of the account requires, an authorisation specified by paragraph (7).

• (4) The national insurance information specified by this paragraph is—

• (a) the qualifying individual’s national insurance number; or

• (b) a declaration by the qualifying individual that the qualifying individual does not qualify for a national insurance number.

• (5) The declaration specified by this paragraph is a declaration by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraph (3) (c) and (f) of that regulation.

• (6) The authorisation specified by this paragraph is an authorisation by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraphs (4)(e) and (4A)(c) of that regulation.

• (7) The authorisation specified by this paragraph is an authorisation by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraphs (4)(e) and (4A)(a) and (b) of that regulation.

• (8) Regulation 12(7), (9) and (10) apply in relation to the declaration specified by paragraph (5) and authorisations specified by paragraphs (6) and (7) as if they were made in relation to an application made by the qualifying individual to open an account pursuant to regulation 12.

• (9) For the purposes of paragraphs (5) to (8)—

• (a) references in regulation 12 to “the applicant” are references to the qualifying individual making the declaration specified by paragraph (5) or giving an authorisation specified in paragraphs (6) and (7);

• (b) references in regulation 12(3) (c) and (f) to “the year in which paragraph (2) refers” (the first year to which the application to open the account relates) are references to the year in which the declaration specified by paragraph (5) is made by the qualifying individual.

Subscriptions to a junior ISA account

4ZB

• (1) Any person may subscribe to a junior ISA account provided the overall amount subscribed by that person and any other person for any year in respect of the same named child does not exceed £9,000.

• (2) An amount paid to a junior ISA account in excess of the amount mentioned in paragraph (1) is not an amount subscribed to a junior ISA account and must not be held in that account.

• (3) A single subscription for an amount equal to the amount mentioned in paragraph (1) or any number of smaller amounts that, when aggregated, do not exceed the amount mentioned in paragraph (1), may be made in respect of the same named child—

• (a) to a cash account held by that child,

• (b) to a stocks and shares account held by that child, or

• (c) in any proportion between such accounts.

• (4) No subscription may be made to a cash account that is a junior ISA account held by a named child where—

• (a) the balance in the account is less than one penny; and

• (b) that child holds another cash account opened pursuant to a junior ISA application described in regulation 12A after the time when the account mentioned in sub-paragraph (a) was opened.

• (5) No subscription may be made to a stocks and shares account that is a junior ISA account held by a named child where—

• (a) the balance in the account is less than one penny; and

• (b) that child holds another stocks and shares account opened pursuant to a junior ISA application described in regulation 12A after the time when the account mentioned in sub-paragraph (a) was opened.

Inalienability of a junior ISA account

4ZC

• (1) Any assignment of, or agreement to assign, investments under a junior ISA account, and any charge on or agreement to charge any such investments, is void.

• (2) On the bankruptcy of the named child holding a junior ISA account, the entitlement to investments under it does not pass to any trustee or other person acting on behalf of the child’s creditors.

• (3) “Assignment” includes assignation; and “assign” is to be construed accordingly.

• (4) “Charge on or agreement to charge” includes a right in security over or an agreement to create a right in security over.

• (5) “Bankruptcy”, in relation to a named child, includes the sequestration of the child’s estate.

• (6) Paragraph (1) shall not render void anything done to vest title to an account investment as required by regulation 4(6)(b)(ia) or 15(a) by virtue of—

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

• (b) a change of registered contact in relation to a junior ISA account.

Permitted withdrawals from a junior ISA account

4ZD

Withdrawals from a junior ISA account may only be made—

• (a) by the account manager, to settle any management charges and other incidental expenses, which are due by or under the management agreement,

• (b) in accordance with regulation 4ZE, or

• (c) where the account manager is satisfied that the named child who held the account has died.

Permitted withdrawals from a junior ISA account

4ZE

• (1) A registered contact may make a claim to the Board for withdrawals from a junior ISA account to be permitted in accordance with this regulation.

• (2) The claim shall be—

• (a) made in a manner prescribed by the Board, which shall include the giving of any consent necessary for the verification or consideration of the claim, and

• (b) accepted in either of the following cases:

• Case 1The named child holding the account:in England and Wales ..., falls within either section 72(5) of the Social Security Contributions and Benefits Act 1992 (special rules for terminally ill person’s entitlement to care component of disability living allowance) or section 82(4) of the Welfare Reform Act 2012 (terminal illness); ...in Northern Ireland, falls within section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (the care component) and, for this purpose, section 66(2)(a) of that Act (attendance allowance for the terminally ill) is deemed to apply as if for “6 months” there were substituted “12 months” , orin Scotland, falls within either of the provisions mentioned in paragraph (i), or is to be regarded as having a terminal illness in accordance with regulations for disability assistance for children and young people , or regulations for disability assistance for working age people, made under section 31 of the Social Security (Scotland) Act 2018.

• Case 2Evidence that the named child holding the account is terminally ill has been supplied to the satisfaction of the Board.

• (3) The Board shall issue a letter to the registered contact authorising withdrawals from the account under this regulation ....

• (4) Once a claim has been accepted, withdrawals of any amount (including the proceeds from a policy of life insurance and an amount sufficient to close the account) may be made by the registered contact at any time (but this does not include the transfer of a policy of life insurance otherwise than in accordance with regulation 21B).

• (5) Where account investments are withdrawn in a form other than sterling currency, the named child shall be treated as having sold the account investments in question, and as having reacquired them in his personal capacity, for a consideration equal to their market value at the time of their withdrawal.

• (6) In this regulation, “terminally ill” has the meaning—

• (a) for England and Wales ... in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992 or section 82(4) of the Welfare Reform Act 2012 (terminal illness); ...

• (b) for Northern Ireland, section 72(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (the care component) and, for this purpose, section 66(2)(a) of that Act (attendance allowance for the terminally ill) is deemed to apply as if for “6 months” there were substituted “12 months”, or

• (c) for Scotland, in either of the provisions mentioned in sub-paragraph (a), or as set out in regulations for disability assistance for children and young people , or regulations for disability assistance for working age people, made under section 31 of the Social Security (Scotland) Act 2018.

Repair of certain incompatible account and excess subscriptions - accounts other than junior ISA accounts

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

Removal of insurance components at 6th April 2005

Removal of maxi-accounts, mini-accounts and TESSA only accounts at 6th April 2008

Treatment of sums held in accounts managed by Icesave Bank

Treatment of certain sums held in accounts managed by Keydata Investment Services Limited

Treatment of certain sums held in dormant accounts

Transfers from matured tax-exempt special savings accounts

General investment rules

Qualifying investments for a stocks and shares component

Qualifying investments for a cash component

Insurance policies

Qualifying individuals who may invest under an account that is not a junior ISA account

Account investor ceasing to qualify

Conditions for application to open an account that is not a junior ISA account

Conditions for application to open an account that is a junior ISA account

12A

• (1) An application (“junior ISA application”) to open a junior ISA account with an account manager may only be made if the account will be held by an eligible child immediately following the opening of the account or by the holder of a junior ISA account arising from a transfer provided for by regulation 20A of the Child Trust Funds Regulations 2004, or if the application is preliminary to such a transfer.

• (2) A child may hold—

• (a) only one account set up as a cash account; and

• (b) only one account set up as a stocks and shares account.

• (3) For the purposes of paragraphs (2) and (7), an account holding an amount of less than one penny shall be disregarded.

• (3A) Except in the case of an account that will be held by an eligible child as mentioned in paragraph (1), the word “eligible” in paragraphs (4), (6), (7)(g), (h) and (i) and (8) must be disregarded.

• (4) A junior ISA application may be made by a person who—

• (a) is over 16, and

• (b) in relation to the junior ISA account to be opened pursuant to the application is—

• (i) a person who has parental responsibility in relation to the eligible child who will hold the account; or

• (ii) the eligible child who will hold the account.

• (5) A junior ISA application must be made to an account manager in a statement and must fulfil the conditions specified in paragraphs (6), (7) and (8).

• (6) A junior ISA application must specify the eligible child as being the beneficial owner of the account investments under that account.

• (7) A junior ISA application must contain a declaration by the applicant that—

• (a) the application is made to open a junior ISA account;

• (b) the information provided in accordance with paragraph (8) is true;

• (c) the child who will hold the account opened pursuant to the application is not an “eligible child” within the meaning given in the Child Trust Funds Act 2004 (but this is not required if the person who will hold the account is already the holder of a junior ISA account arising from a transfer mentioned in paragraph (1), or if the application is preliminary to such a transfer);

• (d) the child who will hold the account opened pursuant to the application is—

• (i) resident ... in the United Kingdom (but this is not required if the application is preliminary to a transfer mentioned in paragraph (1)),

• (ii) 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,

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

• (iv) a dependant of a person mentioned in paragraph (ii);

• (e) the applicant is the person who, upon the opening of the account, will be the registered contact in relation to the account;

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

• (g) in the case of a stocks and shares account, the applicant—

• (i) has not subscribed, and will not subscribe, to any other stocks and shares account that is a junior ISA account held by the same eligible child, and

• (ii) is not aware of any other stocks and shares account held by the eligible child that is a junior ISA account;

• (h) in the case of a cash account, the applicant—

• (i) has not subscribed, and will not subscribe, to any other cash account that is a junior ISA account held by the same eligible child, and

• (ii) is not aware of any other cash account held by the eligible child that is a junior ISA account;

• (i) as far as the applicant is aware, the applicant has not subscribed amounts to the account (or any other account) that, when aggregated with other subscriptions, exceed the overall subscription limit in regulation 4ZB(1) (subscriptions to accounts opened in accordance with this regulation) in relation to the eligible child who will hold the account in the year in which the junior ISA application is made; and

• (j) the applicant will not knowingly subscribe amounts to the account that, when aggregated with other subscriptions, exceed the overall subscription limit in regulation 4ZB(1) applicable from time to time (subscriptions to accounts opened in accordance with this regulation) in each successive year following the year in which the junior ISA application is made.

• (8) A junior ISA application must contain—

• (a) the applicant’s full name,

• (b) the address of the applicant’s permanent residence, including postcode,

• (c) the full name of the eligible child,

• (d) the date of birth of the eligible child,

• (e) where the applicant is not the eligible child, the address of the eligible child’s permanent residence, including postcode,

• (f) the eligible child’s national insurance number if the child—

• (i) is 16 or over, and

• (ii) has been issued with a national insurance number,

• (g) the authorisation specified in paragraph (9).

• (9) The authorisation specified by this paragraph is authority given by the applicant to the account manager (on behalf of the child who holds the account where appropriate)—

• (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 child any claim to relief from tax in respect of account investments; and

• (c) to make a record in writing in accordance with paragraph (11) where that paragraph requires the account manager to do so.

• (10) An account manager must not accept a junior ISA application if the account manager has reason to believe that the applicant has given untrue information in the application.

• (11) Where the junior ISA application is not in writing, or the account 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 (7) and authorisation required by paragraphs (8)(g) and (9);

• (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 (7) and authorisation required by paragraphs (8)(g) and (9).

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

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

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

• (13) Where an account manager is required by paragraph (11) 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 (11)(b) may be sent to the applicant by telephonic facsimile transmission or by electronic communication.

• (14) 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.

Application by curator bonis

Account manager—qualifications and Board’s approval

Special requirements relating to insurer-managers

Account manager—appointment of tax representative

Account manager—withdrawal by Board of approval

Account manager—appeal against withdrawal of Board’s approval

Account manager ceasing to act

Account manager ceasing to qualify

Transfers relating accounts other than junior ISA accounts

Further requirements relating to transfers between cash accounts

Transfers relating to junior ISA accounts

21B

• (1) This regulation only applies to an account that is a junior ISA account.

• (2) In this regulation, in relation to a transfer—

• “the current year’s subscriptions” means—subscriptions made to the account in the year in which the transfer takes place, but before the transfer;subscriptions made in the year in which the transfer takes place to any other account held by the named child and transferred to the account before the transfer, andthe qualifying investments and other proceeds (including income) representing the subscriptions in sub-paragraphs (a) and (b) of this definition;

• “the previous years’ subscriptions” means—subscriptions made to the account (or any other account) in any earlier year or years, andthe qualifying investments and other proceeds (including income) representing those subscriptions.

• (2A) Anything transferred to the account as part of the transfer mentioned in regulation 12A(1) is treated as previous years’ subscriptions for the purposes of this regulation.

• (3) Any transfer relating to an account or part of an account shall be made—

• (a) directly between one account manager (“the transferor”) and another account manager (“the transferee”), or

• (b) where the same person is account manager before and after the transfer, solely by that manager (who shall maintain the records of both transferor and transferee required by this regulation).

• (4) The current year’s subscriptions may only be transferred as a whole (with or without the whole or part of any previous years’ subscriptions).

• (5) In the case of a cash account—

• (a) all or part of the previous years’ subscriptions and, if current year’s subscriptions are to be transferred, all of the current year’s subscriptions made to the cash account, may be transferred to a junior ISA account that is a stocks and shares account belonging to the same named child, or

• (b) all of the subscriptions made to the cash account (“old cash account”) that are held in the account immediately before the transfer may be transferred to a junior ISA account that is a cash account (“new cash account”) belonging to the same named child (and, for the avoidance of doubt, no transfer may be made to a new cash account if the transfer does not comprise all of the subscriptions held in the old cash account immediately before the transfer).

• (6) In the case of a stocks and shares account—

• (a) all or part of the previous years’ subscriptions and, if current year’s subscriptions are to be transferred, all of the current year’s subscriptions made to the stocks and shares account, may be transferred to a junior ISA account that is a cash account belonging to the same named child, or

• (b) all of the subscriptions made to the stocks and shares account (“old stocks and shares account”) that are held in the account immediately before the transfer may be transferred to a junior ISA account that is a stocks and shares account (“new stocks and shares account”) belonging to the same named child (and, for the avoidance of doubt, no transfer may be made to a new stocks and shares account if the transfer does not comprise all of the subscriptions held in the old stocks and shares account immediately before the transfer).

• (7) Where current year’s subscriptions are transferred from a junior ISA account to another junior ISA account, the current year’s subscriptions transferred shall count towards the overall subscription limit for the child holding the account for that year.

• (8) The registered contact shall, subject to paragraph (8A), make a fresh application under regulation 12A (with any necessary modifications to reflect that it is made on a transfer) to the transferee.

• (8A) Paragraph (8) does not apply where an account is transferred in a bulk transfer of accounts.

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

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

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

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

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

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

• (8H) An account transferred in accordance with this regulation in a bulk transfer of accounts is a junior ISA account opened pursuant to an application in accordance with regulation 12A for the purposes of these Regulations whether or not an application in accordance with regulation 12A ... is made.

• (9) This regulation shall also apply where an account is transferred in consequence of an account manager (“the transferor”) ceasing to act or qualify as an account manager.

• (10) Where an account is transferred, the transferor must, subject to paragraph (10B), give to the transferee a notice containing the information specified in paragraph (11) before the relevant time specified in paragraph (10A).

• (10A) The relevant time specified in this paragraph is—

• (a) in the case of an account transferred in a bulk transfer of accounts, the time of the transfer;

• (b) in any other case, the expiry of 30 days after the day of the transfer.

• (10B) Paragraph (10) does not apply where a transferor provides information to a transferee in accordance with regulation 21A(2)(b)(ii).

• (11) The information specified in this paragraph is—

• (a) as regards the named child who holds the account transferred—

• (i) the full name of the child,

• (ii) the address (including postcode) of the permanent residence of the child,

• (iii) the date of birth of the child,

• (iv) the national insurance number of the child (if any) (otherwise, any unique reference number he may have had as mentioned in the Child Trust Funds Regulations 2004); and

• (b) as regards an account from which the transfer is made—

• (i) whether the account is a cash account or stocks and shares account,

• (ii) the date of the transfer,

• (iii) the total amount of cash subscribed to the account during the period from the beginning of the year in which the transfer takes place to the date of the transfer,

• (iv) the date on which the subscription described in paragraph (12) was made (if appropriate), and

• (v) the amount of any dividends on account investments which are payable to, but have not been received by, the transferor at the date of the transfer,

• (vi) the full name of the person who is the registered contact in relation to the account, and

• (vii) the address of the registered contact’s permanent residence, including postcode.

• (12) The subscription referred to in paragraph (11)(b)(iv) is the first subscription to the account provided the subscription is made in the same year as the transfer.

Repair of invalid junior ISA accounts

21C

• (1) It is an overriding requirement to be satisfied in relation to a junior ISA account that the account manager and registered contact, as the case may be, take any steps necessary to remedy any breach of these Regulations.

• (2) Where a breach is remedied as mentioned in paragraph (1), the account shall, to the extent of that breach, be treated as having been a valid account at all times.

Exemption from tax of account income and gains

Interest on cash deposits held under a stocks and shares component of an account that is not a junior ISA account

Tax liabilities and reliefs—account manager to act on behalf of account investor

Repayments in respect of tax to account manager—interim claims

Repayments in respect of tax to account manager—annual returns and annual claims

Account manager’s returns and claims—supplementary provisions

Assessments for withdrawing relief and recovering tax

Records to be kept by account manager

Information to be given to account investor by account manager in relation to an account that is not a junior ISA account

Returns of information by account manager

Information to be provided to the Board

Inspection of records by officer of the Board

Capital gains tax—adaptation of enactments

Administration of tax in relation to accounts—supplementary

Application of the provisions of Chapter II of Part XIII of the Taxes Act and of Chapter 9 of Part 4 of ITTOIA 2005 to policies where an investor ceases to be or was not entitled to relief from tax

Special provision in respect of Looked After Children

2F

• (1) A child is a Looked After Child where, after 2nd January 2011, there is a continuous period of at least 12 months during which paragraph (2) applies in relation to the child.

• (2) This paragraph applies in relation to a child where the child is—

• (a) looked after by a local authority within the meaning of section 22(1) of the Children Act 1989 (general duty of local authority in relation to children looked after by them);

• (ab) looked after by a local authority within the meaning of section 74 of the Social Services and Well-being (Wales) Act 2014;

• (b) provided with accommodation by an authority by virtue of article 21 of the Children (Northern Ireland) Order 1995 (provision of accommodation for children: general);

• (c) the subject of an order made under article 50(1)(a) of the Children (Northern Ireland) Order 1995 (care orders and supervision orders);

• (d) provided with accommodation by a local authority by virtue of section 25 of the Children (Scotland) Act 1995 (provision of accommodation for children, etc.);

• (e) the subject of a supervision requirement made under section 70(1) of the Children (Scotland) Act 1995 (disposal of referral by children’s hearing: supervision requirements, including residence in secure accommodation);

• (ea) the subject of a compulsory supervision order within section 83 of the Children’s Hearings (Scotland) Act 2011 (“the 2011 Act”) (meaning of compulsory supervision order);

• (eb) the subject of an interim compulsory supervision order within section 86 of the 2011 Act (meaning of interim compulsory supervision order);

• (f) the subject of a permanence order made under section 80 of the Adoption and Children (Scotland) Act 2007 (permanence orders); or

• (g) treated as if the child were subject to an order described in sub-paragraph (f) by virtue of article 13(1) of the Adoption and Children (Scotland) Act 2007 (Commencement No. 4, Transitional and Savings) Order 2009.

• (3) In relation to a Looked After Child, regulations 2C(4)(b) (meaning of “registered contact” etc.) and 12A(4)(b)(i) (conditions for application to open an account that is a junior ISA account) must be construed as if the Share Foundation has parental responsibility in respect of that child.

• (4) In relation to an application to assume responsibility for the management of a junior ISA account by the Share Foundation, regulation 2C(7)(c) must be construed as requiring a declaration that—

• (a) the applicant is the Share Foundation;

• (b) the application is in relation to a Looked After Child; and

• (c) the Share Foundation is to be the registered contact for the account.

• (5) Where an application to assume responsibility for the management of a junior ISA account is made in relation to which the registered contact is the Share Foundation, regulation 2C(9)(a) must be construed as referring only to sub-paragraphs (e) and (g) of paragraph (10).

• (6) Where the registered contact in relation to a junior ISA account is the Share Foundation, any reference in these Regulations to the residence of the registered contact must be construed as meaning a reference to the registered offices of the Share Foundation.

• (7) In this regulation “the Share Foundation” means the company limited by guarantee (number 4500923) and charity registered with the Charity Commission of England and Wales (number 1108068) as “The Share Foundation”.

Introductory

General conditions for accounts and subscriptions to accounts

Subscriptions to an account other than a junior ISA account

Subscriptions to a junior ISA account

Inalienability of a junior ISA account

Permitted withdrawals from a junior ISA account

Repair of certain incompatible account and excess subscriptions - accounts other than junior ISA accounts

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

Removal of insurance components at 6th April 2005

Removal of maxi-accounts, mini-accounts and TESSA only accounts at 6th April 2008

Treatment of sums held in accounts managed by Icesave Bank

Treatment of certain sums held in accounts managed by Keydata Investment Services Limited

Treatment of certain sums held in dormant accounts

Subscriptions disregarded for the purposes of the subscription limits in regulations 4ZA and 4ZB

5D

• (1) A subscription to an account made in accordance with this regulation must be disregarded for the purposes of the subscription limits in regulations 4ZA(1) (subscriptions to an account other than a junior ISA account) and 4ZB (subscriptions to a junior ISA account).

• (2) A subscription to an account held by an account investor is made in accordance with this regulation if—

• (a) the subscription is—

• (i) a defaulted cash account subscription;

• (ia) a defaulted Lifetime ISA subscription;

• (ib) a returned withdrawal from a Lifetime ISA following failure of a purchase to complete under paragraph 10(1) of the Schedule;

• (ii) a defaulted investment subscription; ...

• (iia) a replacement subscription;

• (iii) permitted in accordance with regulation 5DE; ...

• (iv) permitted in accordance with regulation 5DDA; or

• (v) permitted in accordance with regulation 5DDC; and

• (b) the account manager of the account to which the subscription is made is provided with the information specified in regulation 5DF as relevant to the subscription; and

• (c) in a case within sub-paragraph (a)(iv)—

• (i) the account manager of the account to which the subscription is made is provided with the declarations required by regulation 5DFA as relevant to the subscription;

• (ii) the notices specified in regulation 5DFB(1) and (3) are given, as relevant to the subscription; and

• (iii) the information and declarations required by regulation 5DFC(2) are

provided; and

• (d) in a case within paragraph (2)(a)(ib) the account manager of the Lifetime ISA to which the subscription is made is provided with the information specified in paragraph 9(3)(b) of the Schedule.

• (3) A subscription to an account held by an account investor is made in accordance with this regulation if it comprises a transfer provided for by regulation 20A of the Child Trust Funds Regulations 2004.

Defaulted cash account subscription

5DA

A subscription is a defaulted cash account subscription if—

• (a) it is made to an account (which may be a stocks and shares account, a cash account, an innovative finance account or a Lifetime ISA) held by an account investor who held a cash account (“defaulted cash account”) in respect of which a default event occurred no more than 180 days before the subscription is made; and

• (b) it does not exceed the amount held in the defaulted cash account immediately before the default event occurred (including interest accrued but not paid at that time) plus, in the case of a flexible account, in the year in which the default event occurred and before such event, the amount (if any) of cash withdrawn from the account which was not replaced by a replacement subscription.

Defaulted investment subscription

5DB

A subscription is a defaulted investment subscription if—

• (a) it is made to an account held by the account investor who held the account in respect of which a defaulted investment payment has been made no more than 180 days before the subscription is made; and

• (b) it does not exceed the amount of the defaulted investment payment.

Default event in respect of cash account

5DC

A default event in respect of a cash account held by an account investor occurs where the account manager of that account is determined to be unable or likely to be unable to satisfy claims against the account manager in accordance with the rules of the scheme for compensation established pursuant to section 213 of the Financial Services and Markets Act 2000.

Defaulted investment payment

5DD

A defaulted investment payment occurs where a payment is made (otherwise than by accretion to an account) by way of compensation in respect of poor performance, loss (in whole or in part), depreciation or risk of depreciation of an investment (“defaulted investment”)—

• (a) described in regulation 7, held in a stocks and shares account (whether or not the defaulted investment continues to be held in the account at the time of the payment); ...

• (b) described in regulation 8A, held in an innovative finance account (whether or not the defaulted investment continues to be held in the account at the time of the payment); or

• (c) described in regulation 7 or 8, held in a Lifetime ISA (whether or not the defaulted investment continues to be held in the account at the time of the payment).

Additional permitted subscription to a junior ISA account

5DE

A subscription is permitted by this regulation if it is made to a junior ISA account that is a cash account but would have been a defaulted investment subscription if it had been made to a stocks and shares account.

Information required by regulation 5D

5DF

• (1) The information specified by this regulation is—

• (a) in relation to a defaulted cash account subscription—

• (i) evidence of the amount held in the defaulted cash account to which the subscription relates immediately before the default event occurred (including interest accrued but not paid at that time);

• (ia) in the case of a flexible account, in the year in which the default event occurred and before such event, evidence of the amount (if any) of cash withdrawn from the account which was not replaced by a replacement subscription;

• (ii) the current year’s subscription made to that account; and

• (iii) the date on which the first subscription (if any) was made to that account, in the year in which the defaulted cash subscription is made;

• (b) in relation to a defaulted investment subscription, defaulted Lifetime ISA subscription or a subscription permitted by regulation 5DE—

• (i) evidence of the amount of the defaulted investment payment to which the subscription relates and the date it was paid;

• (ii) details of the defaulted investment in respect of which the defaulted investment payment was made;

• (iii) the full name and address (including postcode) of the account manager of the stocks and shares account, innovative finance account or Lifetime ISA in which the defaulted investment was held;

• (iv) the full name and address (including postcode) of the maker of the defaulted investment payment;

• (c) in relation to a subscription permitted by regulation 5DDA—

• (i) the deceased’s full name;

• (ii) the full address of the deceased’s permanent residence at the date of death;

• (iii) the deceased’s National Insurance number, if known;

• (iv) the deceased’s date of birth and date of death; and

• (v) the date of S’s marriage or civil partnership to the deceased;

• (d) in relation to a subscription permitted by regulation 5DDA and made with an account manager other than the deceased’s account manager, the name and address of the deceased’s account manager.

• (1A) The requirements in sub-paragraph (1)(c) are met where the information is provided on the first instance a subscription permitted by regulation 5DDA is made to an account.

• (2) In this regulation—

• “current year’s subscription” in relation to a defaulted cash account means—subscriptions (other than a subscription to the account made in accordance with regulation 5D) made to the account in the year in which the defaulted cash account subscription is made, but before the default event; andsubscriptions made to any other account held by the account investor in the year in which the defaulted cash account subscription is made and transferred to the account before the subscription is made.

Single regulation 5D subscription

5DG

Only one defaulted cash account subscription, defaulted investment subscription, defaulted Lifetime ISA subscription or subscription permitted by regulation 5DE may be made in respect of a defaulted cash account or a defaulted investment payment as the case may be even if the subscription made is an amount less than that which could have been made by way of such subscription in accordance with regulation 5D.

Default event or default investment payment occurring in the period beginning on 6th April 2011 and ending on 7th August 2012

5DH

Anything occurring in the period commencing on 6th April 2011 and ending on 7th August 2012 that, if it had occurred after that period, would have been—

• (i) a default event in respect of a cash account within regulation 5DC, or

• (ii) a defaulted investment payment within regulation 5DD,

shall be treated as occurring on 8th August 2012 for the purposes of regulations 5D to 5DG.

Special provision in respect of Lehman Brothers investments and Keydata investments

5DI