{
  "url": "https://openlegislation.uk/individual-savings-account-amendment-no-2-regulations-2011/note",
  "json_url": "https://openlegislation.uk/individual-savings-account-amendment-no-2-regulations-2011/note.json",
  "legislation": "uksi/2011/1780",
  "legislation_title": "The Individual Savings Account (Amendment No. 2) Regulations 2011",
  "legislation_url": "https://openlegislation.uk/individual-savings-account-amendment-no-2-regulations-2011",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations, which come into force on 1st November 2011, amend the Individual Savings Account Regulations 1998 (S.I. 1998/1870) (“the ISA Regulations”) to introduce tax efficient individual investment plans for children (known as “junior ISA” accounts) and to update some of the ISA Regulations.\nRegulations 1 and 2 provide for the citation and commencement of these Regulations and generally for the amendment of the ISA Regulations.\nRegulations 3 to 5 amend the definitions contained in regulation 2(1) of the ISA Regulations and the tabular index of defined terms contained in regulation 2(2). In addition to a number of consequential amendments to, and updating of, references made to other statutory provisions by existing definitions, a number of terms relevant to junior ISA accounts are defined. These include “child”, “eligible child”, “named child”, “parental responsibility”, “responsible person” and make reference to the regulations that make provision in respect of the meaning of “junior ISA account”, “registered contact” and the meaning of “account investor” in respect of accounts that are junior ISA accounts and ISA accounts that are not junior ISA accounts.\nRegulation 6 inserts regulations 2A to 2E into the ISA Regulations. Regulation 2A provides that although “account investor” means a “qualifying individual” within regulation 10 in the context of accounts that are not junior ISA accounts, its use in regulations that apply to junior ISA accounts is a reference to either of the “named child” or “registered contact” in relation to the account as specified in the regulation 2A. Regulation 2B makes provision in respect of the meaning of “junior ISA account”. Regulation 2C provides who, as the “registered contact”, may give instructions in relation to the management of a junior ISA account and the circumstances in which a change of registered contact may occur. Regulation 2D specifies the ISA Regulations that do not apply to a junior ISA account and regulation 2E provides for the circumstances where a contract entered into by a child aged 16 or over is treated as if the child had been 18 or over when the contract was entered into.\nRegulation 7 amends regulation 4 of the ISA Regulations (general conditions for accounts) so that it relates to accounts that are junior ISA accounts as well as accounts that are not. Although junior ISA accounts are subject to many of the same requirements as apply to other ISA accounts, there are differences, such as the requirement that, although a named child may hold a cash junior ISA and a stocks and shares ISA, only one of each type of account may be held during the childhood of the named child (albeit that accounts may be transferred to alternative account managers).\nRegulation 8 inserts regulation 4ZA, which concerns subscriptions to accounts that are not junior ISA accounts and which are similar to provisions previously forming part of regulation 4. Regulation 8 also inserts regulation 4ZB (subscriptions to a junior ISA account) and regulations 4ZC to 4ZE which concern the inalienability of junior ISA accounts and the limited circumstances in which withdrawals may be made while an account is a junior ISA account.\nRegulations 9 and 10 amend regulations 4A and 4B of the ISA Regulations by updating cross-references in those regulations to provisions contained in paragraph 4 of the ISA Regulations before its amendment by these Regulations and also provide that, for the purposes of regulation 4A (repair of certain incompatible accounts and excess subscriptions), a subscription to a junior ISA account is disregarded.\nRegulation 11 omits regulation 5A (treatment of sums held in accounts managed by Icesave bank) which is spent.\nRegulations 12 to 15 update cross-references in regulations 5B, 5C, 6 and 7 of the ISA Regulations in consequence of the amendments made by these Regulations.\nRegulation 16 amends regulation 9 of the ISA Regulations in relation to the terms and conditions that must be included in the contract of a policy held under an ISA account assuring the life of the person holding the ISA account. The amendments made by regulation 16 primarily relate to restricting the circumstances in which a policy is transferred or proceeds of a policy may be withdrawn but also specify the circumstances where transfers and withdrawals must not be prohibited.\nRegulation 17 amends regulation 10 of the ISA Regulations by making consequential amendments arising from amendments made by these Regulations and ensuring that subscriptions made to a junior ISA account are disregarded for the purposes of determining whether a person is a qualifying individual for the purposes of an account that is not a junior ISA account.\nRegulations 18 and 19 amend regulation 12 and insert regulation 12A of the ISA Regulations to provide the requirements for the opening of an account that is not a junior ISA account (regulation 12) and for the opening of a junior ISA account (regulation 12A).\nRegulation 20 amends regulation 14 of the ISA Regulations relating to the qualifying circumstances for a person to be approved as an account manager by requiring further undertakings to be given if that person intends to be an account manager in relation to a junior ISA account and that an account manager must not be prevented from acting as an account manager by virtue of sections 42 and 43 of the Financial Services and Markets Act 2000 (c. 8).\nRegulations 21 and 22 amend regulations 17 and 19 of the ISA Regulations so that where the approval of a person as an account manager is withdrawn, or an account manager gives notice to HMRC that the account manager intends to cease to act as an account manager, account investors holding ISA accounts with that person must be notified of their right to transfer an ISA account to another account manager in accordance with regulations 21 and 21B and, by virtue of regulation 20(3) of the ISA regulations, that if the transfer is made within 30 days of the notification, the period between the account manager ceasing to act or qualify as account manager is ignored.\nRegulation 23 amends regulation 20 of the ISA Regulations to require an account manager to notify H M Revenue and Customs (HMRC) if the conditions for approval as an account manager in regulation 14 of the ISA Regulations are no longer fulfilled or upon the occurrence of other events specified and to notify account investors similarly of their rights as required by regulations 17 and 19 of the ISA regulations.\nRegulations 24, 25 and 26 amend Regulations 21 and 21A of the ISA Regulations and insert regulations 21B and 21C so that regulation 21 governs the transfer between account managers of accounts that are not junior ISA accounts, regulation 21B governs transfers of junior ISA accounts and regulation 21A governs the time within which a transfer of cash ISA in accordance with regulation 21 or 21B must be made together with other requirements relating to such a transfer. Regulation 21C requires an account manager and registered contact to take any necessary steps to remedy a breach of the ISA Regulations in relation to a junior ISA account.\nRegulation 27 amends regulation 22 of the ISA Regulations by updating a number of statutory cross-references relevant to the exemption from tax enjoyed by ISA accounts and amending paragraph (2) in consequence of the amendment of regulation 12 and insertion of regulation 12A by these Regulations. Regulation 22 is also amended so that income arising from a junior ISA account is not regarded as income for any income tax purpose (including section 629 of the Income Tax (Trading and Other Income) Act 2005 (c. 5)) and provides that a reference to “interest” in regulation 22 includes a reference to any bonus and to a dividend paid or credited in respect of a share account with a building society.\nRegulation 28 amends regulation 23 of the ISA Regulations, which relates to interest paid on cash deposits held under a stocks and shares component, so that it does not relate to a junior ISA account.\nRegulation 29 amends regulation 28 of the ISA Regulations (assessments for withdrawing relief and recovering tax) by updating the statutory reference made by the regulation.\nRegulation 30 amends regulation 30 of the ISA Regulations so that the information that regulation requires an account manager to give to an account investor only applies in relation to an account that is not a junior ISA account and updates cross-references to other regulations required by virtue of the amendments made by these Regulations.\nRegulation 31 amends regulation 31 of the ISA Regulations to specify the information an account manager must include in relation to junior ISA accounts in the return of information required by that regulation and updates cross-references to other regulations required by virtue of the amendments made by these Regulations.\nRegulation 32 amends the ISA Regulations by omitting regulations 32 (information to be provided to the Board) and 33 (inspection of records by officer of the Board).\nRegulation 33 amends regulation 36(9) of the ISA Regulations to update the relevant statutory references in relation to basic rate and higher rate income tax and to ensure an assessment to income tax described in that regulation may also be made at the additional rate (where appropriate) and not more than 4 years after the end of the relevant year of assessment.\nA Tax Information and Impact Note covering this instrument has been published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm .",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2011/1780/note",
    "retrieved_at": "2026-10-29T02:01:06.032017+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}