The Individual Savings Account (Amendment) Regulations 2014

These Regulations may be cited as the Individual Savings Account (Amendment) Regulations 2014 and come into force on 6th April 2014.

Regulation 3(c) (definition of European Institution) has effect from 15th August 2013.

in the definition of “account”, in paragraph (iv), from “section” to “institution”, substitute: “section 991(2) of the Income Tax Act 2007^f1”;

after the definition of “assurance undertaking” insert—

• ““bank” has the meaning given by section 991(2) to (5) of the Income Tax Act 2007;”;

in the definition of “European institution”, for “paragraph 5(a), (b) or (c)”, substitute: “paragraph 5(a) to (d), (f) and (h)”; and after “under paragraph 12”, insert: “(1) to (4) and (7)”;

for the meaning given for “investment trust”, substitute—

• ““investment trust” is a company that is such a trust for the purposes of the Corporation Tax Acts^f2, or would be such a trust but for section 1158(3) of the Corporation Tax Act 2010^f3;”

omit the definition of “relevant European institution”.

substitute from “This paragraph applies” to “section 1(2) of the Mental Health Act 1983^f1;” with—

“For the purposes of paragraph (2)(b)(ii) this paragraph applies in relation to the child—

(a)

if the child is resident in England and Wales and lacks capacity in relation to the management of the junior ISA account under section 2(1) of the Mental Capacity Act 2005^f2;”;

in sub-paragraph (b), substitute for “in relation to a child resident in Scotland,” the words: “if the child is resident in Scotland, the child is suffering mental disorder within the meaning given by”; and

in sub-paragraph (c), substitute for “in relation to a child resident in Northern Ireland,” the words: “if the child is resident in Northern Ireland, the child is suffering mental disorder within the meaning given by”.

in paragraph (1)(a), for “£5,760” substitute “£5,940”; and

in paragraph (1)(b), for “£11,520” substitute “£11,880”.

In regulation 4ZE (permitted withdrawals from a junior ISA account where the named child is terminally ill), in paragraph (2)(b) for case 1 substitute—

“Case 1

The named child holding the account:”

In paragraph (3) after “regulation” omit: “, and shall also notify the account manager”.

In paragraph (6)—

in paragraph (2)(d), after “shares in an investment trust,”, omit: “listed in the Official List of the Stock Exchange,”;

in paragraph (3), from “An investment” to “admission to trading in paragraph (2)(a)” substitute: “An investment in shares fulfils the conditions as to official listing and admission to trading in paragraph (2)(a)”; and

in paragraph (3)(a), omit “or trust”.

for paragraph (2)(a)(iii), substitute—

“(iii)

a bank, other than of a type at paragraph (a), (d) or (e) of section 991(2) of the ITA 2007,”; and

omit paragraph (2)(a)(iv) and the preceding “or”.

for paragraph (12) substitute—

“(12)

An application may be made on an individual’s behalf —

(a)

if the individual is resident in England and Wales—

(i)

pursuant to an order under section 16(2)(a) of the Mental Capacity Act 2005; or

(ii)

by a deputy appointed under section 16(2)(b) of that Act; or

(b)

if the individual is resident in Scotland or Northern Ireland and is suffering from mental disorder, by a parent, guardian, spouse, civil partner, son or daughter of the individual.”;

in paragraph 13 after “has the meaning given by”, omit: “section 1(2) of the Mental Health Act 1983 or,”

in paragraph (3)(b)(ii), after “component of the account”, omit: “subject to paragraph (6),”; and

in paragraph (4)(a)(i), after “ non-UCITS retail scheme,”, insert: “officially listed on a recognised stock exchange”;;

after paragraph (4)(a)(i), insert—

“(ia)

such shares admitted to trading on a recognised stock exchange in an EEA State,”.