Explanatory note

These Regulations amend the Individual Savings Account Regulations 1998 by:

• allowing long-term asset funds to be held in a stocks and shares account (regulation 2(3));

• removing the provision that allows long-term asset funds to be held under an innovative finance account (regulation 2(6)(a));

• providing that long-term asset funds which were held under an innovative finance account immediately before 6th April 2026 are to be treated as qualifying investments for a stocks and shares component held under a stocks and shares account (regulation 2(5)(b));

• providing that UK cryptoasset exchange traded notes cannot be held under a stocks and shares account unless they were already held in a stocks and shares account immediately before 6th April 2026 (regulation 2(5));

• allowing UK cryptoasset exchange traded notes to be held under an innovative finance account (regulation 2(6)(b));

• making various consequential provision relating to long-term asset funds and UK cryptoasset exchange traded notes (regulation 2(3), (4) and (7)).

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.