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The Individual Savings Account (Amendment No. 3) Regulations 2008

S.I. 2008/3025 · Made 24 November 2008

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 24th November 2008

Laid before the House of Commons 24th November 2008

Coming into force 16th December 2008

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

Annotations to the whole text

Footnotes

f1

2005 c. 5; there are no relevant amendments.

f2

1992 c. 12.

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. Signature
  6. Explanatory note

1Citation and commencement

These Regulations may be cited as the Individual Savings Account (Amendment No. 3) Regulations 2008 and shall come into force on 16th December 2008.

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) in the definition of “security”—

(a)

for “(cb) and (8)(b), 8(2)(e) and (f), 31(4)(b)” substitute “(cc) and (8)(b), 8(2)(f)”;

(b)

at the end add “, and in regulation 7(2)(cc) has the same meaning but with the omission of the words “of a company””.

4Amendment of the Individual Savings Account Regulations 1998

In regulation 7(2) (qualifying investments for a stocks and shares component) after sub-paragraph (cb) insert—

“(cc)

securities issued by a multilateral institution, contributions to which may be reported as official development assistance, listed in Part I of Annex 2 to the DAC Statistical Reporting Directivef1 (approved by the Development Assistance Committee of the Organisation for Economic Co-operation and Development), where the securities satisfy the conditions in paragraphs (5)(b) and (6);”.

Signature

Steve McCabe

Frank Roy

Two of the Lords Commissioners of Her Majesty’s Treasury

24th November 2008

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Individual Savings Account Regulations (S.I. 1998/1870) to extend the list of qualifying investments for stocks and shares ISAs to include bonds issued by multilateral institutions (as defined by the Organisation for Economic Co-operation and Development). Multilateral institutions are those, contributions to which may be reported as official development assistance by governments and other official agencies. Some multilateral institutions, which receive grants from national governments, have issued securities on the capital markets, in order to raise funds for their development goals. These Regulations allow retail investors who purchase those securities to do so through their ISAs.

Regulation 1 provides for citation and commencement.

Regulation 3 makes necessary changes to the ISA definition of “securities.”

Regulation 4 adds the securities to the list of qualifying investments for stocks and shares ISAs.

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.