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The Individual Savings Account (Amendment No. 2) Regulations 2005

S.I. 2005/2561 · Made 14 September 2005

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 14th September 2005

Laid before the House of Commons 15th September 2005

Coming into force 6th October 2005

The Treasury, in exercise of the powers conferred upon them by sections 694(1), (3) and (5), 695(1) to (3), 696 and 701(1) of the Income Tax (Trading and Other Income) Act 2005f1, and section 151 of the Taxation of Chargeable Gains Act 1992f2, make the following Regulations:

Annotations to the whole text

Footnotes

f1

2005 c. 5.

f2

1992 c. 12; section 151 was amended by section 85 of the Finance Act 1993 (c. 34), by section 64(2) of the Finance Act 1995 (c. 4) and by paragraph 436 of Schedule 1 to the Income Tax (Trading and Other Income) Act 2005.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Individual Savings Account Regulations 1998
  3. 3Amendment of the Individual Savings Account Regulations 1998
  4. 4Amendment of the Individual Savings Account Regulations 1998
  5. 5Amendment of the Individual Savings Account Regulations 1998
  6. 6Amendment of the Individual Savings Account Regulations 1998
  7. 7Amendment of the Individual Savings Account Regulations 1998
  8. Signature
  9. Explanatory note

1Citation and commencement

These Regulations may be cited as the Individual Savings Account (Amendment No. 2) Regulations 2005 and shall come into force on 6th October 2005.

2Amendment of the Individual Savings Account Regulations 1998

The Individual Savings Account Regulations 1998f1 are amended as follows.

3Amendment of the Individual Savings Account Regulations 1998

In regulation 2(1)(a) for the definition of “the Board” substitute—

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

4Amendment of the Individual Savings Account Regulations 1998

In regulation 4f1—

(a)

in paragraph (2)—

(i)

for “2005-06 and £5,000 for subsequent years” substitute “2009-10”;

(ii)

for “the years 1999-00 to 2005-06, and £1,000 in subsequent years,” substitute “each year”;

(b)

in both paragraphs (2A) and (2B), for “2005-06, and £1,000 in subsequent years” substitute “2009-10”;

(c)

in paragraph (3)(a) for “2005-06 and £1,000 for subsequent years” substitute “2009-10”.

5Amendment of the Individual Savings Account Regulations 1998

In regulation 7f1—

(a)

in paragraph (2)(a) for the words from “, issued” to the end substitute—

“(i)

issued by a company wherever incorporated,

(ii)

subject to paragraph (3), officially listed on a recognised stock exchange, and

(iii)

in circumstances where the shares in question satisfy the condition specified in paragraph (15), or were held under the component on 6th October 2005;”;

(b)

for paragraph (2)(b)(ii) substitute—

“(ii)

where the securities in question satisfy—

(a)

at least one of the conditions specified in paragraph (5),

(b)

the condition specified in paragraph (6), and

(c)

the condition specified in paragraph (15), or the condition that they were held under the component on 6th October 2005, and”;

(c)

in paragraph (14) after “sub-paragraphs” insert “(a), (b),”.

6Amendment of the Individual Savings Account Regulations 1998

In regulation 8(2)(g)f1—

(a)

after “sub-paragraphs” insert “(a), (b),”;

(b)

after “units” insert “, securities”.

7Amendment of the Individual Savings Account Regulations 1998

In regulation 31f1—

(a)

in paragraph (4)(a) after paragraph (ii) insert—

“(iia)

government securities falling within regulation 7(2)(c), (ca) or (cb);”;

(b)

in paragraph (4)(b) omit paragraph (ii);

(c)

in paragraph (7)(b) at the end insert—

“(iii)

invested in policies (within the meaning in regulation 9(1)) under stocks and shares components; and

(iv)

invested in policies (within that meaning) under cash components.”

Signature

Joan Ryan

Vernon Coaker

Two of the Lords Commissioners of Her Majesty’s Treasury

14th September 2005

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Individual Savings Account Regulations 1998 (S.I. 1998/1870: “the main Regulations”). The principal effects are (1) to extend the annual subscription limits to 5th April 2010 (2) to apply the “cash like test” in regulation 7(15) to shares and securities and (3) to make small changes to the annual information returns required from account managers.

Regulation 1 provides for citation and commencement and regulation 2 for amendment of the main Regulations. Regulation 4 extends the annual subscription limits to 5th April 2010.

Regulation 5 applies the “cash like test” to shares and securities (if they fail that test, regulation 6 provides that they may be held under a cash component).

Regulation 7 makes changes to the annual information return (the main change is that subscriptions invested in insurance policies have to be returned separately).

These Regulations impose no new costs (exceeding the minimum threshold) on business.