Explanatory note

These Regulations amend the Individual Savings Account Regulations 1998 (S.I. 1998/1870) (“the ISA Regulations”) by inserting regulation 21A and making consequential amendments to regulations 4 and 21 of the ISA Regulations.

Regulation 3 of these Regulations amends regulation 4 of the ISA Regulations with effect from 6th April 2011, so as to require any agreement between an account investor and an account manager to contain a provision that any transfer of a cash individual savings account (“cash ISA”) or part thereof to another cash ISA held by the account investor with another account manager will not only be in accordance with regulation 21 (transfers relating to accounts) of the ISA Regulations but also consistent with regulation 21A where it applies.

Regulation 4 of these Regulations amends regulation 21(5) of the ISA Regulations with effect from 4th January 2011 so that an account manager from whom a cash ISA or part of a cash ISA is transferred, who provides information to the account manager to whom the transfer is made in accordance with regulation 21A(2)(b)(ii), is not required to provide information in accordance with regulation 21(5) and (6).

Regulation 5, which has effect from 4th January 2011, inserts regulation 21A into the ISA Regulations so that where a cash ISA or part of a cash ISA is transferred, the transfer must be made in accordance with regulations 21 and 21A.

A full Impact Assessment of the effect of this instrument will have on the costs of business and the voluntary sector is available from the HMRC website at http://www.hmrc.gov.uk/better-regulation/ia.htm.