Regulation 21 New regulation 10A

After regulation 10 insert—

“Lifetime ISA qualifying individuals who may invest under a Lifetime ISA

10A.

(1)

This regulation specifies the description of individual (“Lifetime ISA qualifying individual”) who may invest under a Lifetime ISA.

(2)

A Lifetime ISA qualifying individual to whom paragraph (1) refers is an individual who—

(a)

is 18 years of age or over;

(b)

in relation to a current year payment is under 50 years of age;

(c)

in relation to a current year payment or a payment under paragraph (4)(c), has not made, and will not make, any such payment to any other Lifetime ISA in the year in which the payment is made;

(d)

has not exceeded the overall subscription limit in regulation 4ZA(1)^f1 in that year;

(e)

has not exceeded the overall Lifetime ISA payment limit in regulation 4ZA(1A)^f2 in that year; and

(f)

in relation to a current year payment or a payment under paragraph (4)(c), is resident in the United Kingdom or, if not so resident—

(i)

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^f3, or

(ii)

is married to or in a civil partnership with a person mentioned in paragraph (i).

(3)

Subject to paragraph (4), the following are current year payments—

(a)

a subscription of money;

(b)

a subscription of shares to which regulation 7(2)(h)^f4 applies;

(c)

a subscription to which regulation 5D^f5 applies;

(d)

an additional permitted subscription in accordance with regulation 5DDA^f6;

(e)

a replacement subscription in accordance with regulation 5DDB^f7;

(f)

an additional permitted subscription on closure of a Help to Buy ISA in accordance with regulation 5DDC^f8; and

(g)

a transfer of qualifying investments for a Lifetime ISA component from an account which is not a Lifetime ISA.

(4)

The following are not current year payments—

(a)

a defaulted Lifetime ISA subscription under regulation 5D(2)(a)(ia);

(b)

a returned withdrawal under regulation 5D(2)(a)(ib); and

(c)

the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest.”.