Regulation 2 Interpretation

In these Regulations unless the context otherwise requires—

• an “account investment” is an investment under the account which is a qualifying investment for a stocks and shares componentF6, a cash componentF7, an innovative finance component or a Lifetime ISA component, as the case may be, within the meaning of regulation 7, 8F8, 8ZA or 8A;

• F9an “account investor” has the meaning given in regulation 2A;

• an “account manager" is a person who fulfils the conditions of these Regulations and is approved by the Board for the purposes of these Regulations as an account manager;

• F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “approved profit sharing scheme" has the same meaning as in Chapter IV of Part V of the Taxes Act;

• F12“article 36H agreement” is to be construed in accordance with article 36H(4) of the Regulated Activities Order 2001 and is an agreement entered into by an account investor as lender with a borrower with the facilitation of an operator and for the purposes of regulation 8A(2) includes such an agreement notwithstanding that, after it is entered into, the operator F13or, in relation to a continuing account of a deceased investor, any person within the description of section 694A(2) of ITTOIA 2005 or referred to in section 694A(1) of that Act, assumes the rights of the lender under it;

• an “assurance undertaking" means F14a direct life insurance undertaking within the meaning of Article 2 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);

• F15“bank” has the meaning given by section 991(2) to (5) of the Income Tax Act 2007;

• F16“the Board” means the Commissioners for Her Majesty’s Revenue and Customs;

• “borrower” is to be construed in accordance with article 36H(9) of the Regulated Activities Order 2001;

• “building society" means a building society within the meaning of the Building Societies Act 1986 M1, or the Irish Building Societies Act 1989 M2;

• F17“building society bonus”, except in regulation 22(1)(a)(i), excludes any bonus, distribution of funds or the conferring of rights in relation to shares—

  1. (a)

     in connection with an amalgamation, transfer of engagements or transfer of business of a building society, and

  2. (b)

     mentioned in section 96 or 100 of the Building Societies Act 1986,

  and “payment under a building society bonus scheme” shall be construed accordingly;.

• F18“business day” means any day except—

  1. (a)

     a Saturday, Sunday, Good Friday or Christmas Day;

  2. (b)

     a bank holiday under the Banking and Financial Dealings Act 1971;

• F19“ceasing to be subject to the plan”, in relation to plan shares under F20a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• F21“charity” has the meaning given in paragraph 1(1) of Schedule 6 to the Finance Act 2010;

• F22“child” means an individual under 18;

• F23“child trust fund” has the meaning given by section 1 of the Child Trust Funds Act 2004;

• F24“Child Trust Funds Regulations” means the Child Trust Funds Regulations 2004;

• “company", except in regulation 7(4), means any body corporate having a share capital other than—

  1. (i)

     an open-ended investment company, within the meaning given by section F25236 of the Financial Services and Markets Act 2000, F26or

  2. (ii)

     F27a UK UCITS, recognised UCITS or non-UCITS retail scheme F28;

  3. (iii)

     F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  4. (iv)

     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F30“continuing account of a deceased investor” has the meaning given in regulation 2G;

• F31“credit union” means a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985;

• F32“CTA 2010” means the Corporation Tax Act 2010;

• “CTF matured account” has the meaning given in regulation 5DZA;

• F33“current year payments” has the meaning given in regulation 10A(3);

• “debenture” includes any instrument creating or acknowledging indebtedness within the meaning of article 77(1) and (2) of the Regulated Activities Order 2001 but with the omission of the words “such of the following as do not fall within article 78;

• F34“deceased’s account” is an account which the deceased held with an account manager at the date of the deceased’s death;

• “deposit-taker" has the meaning given by F35section 853 of ITA 2007;

• F36“the Director of Savings” has the same meaning as in the National Debt Act 1972

• F37“dormant account” means an account which contains a “relevant dormant asset” within the meaning given in section 39(2) of the Finance Act 2008, omitting the words “is to be, or”;

• F38...

• F39“EEA State” has the meaning given in Schedule 1 to the Interpretation Act 1978;

• F40“eligible child” means a child—

  1. (a)

     born—

     1. (i)

        on or after 3rd January 2011; or

     2. (ii)

        before the time mentioned in paragraph (i) but who is not an “eligible child” within the meaning given in the Child Trust Funds Act 2004; and

  2. (b)

     who, at the time when the application to open an account pursuant to a junior ISA application described in regulation 12A is made, is—

     1. (i)

        resident F41... in the United Kingdom;

     2. (ii)

        a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003;

     3. (iii)

        married to, or in a civil partnership with, a person mentioned in paragraph (ii); or

     4. (iv)

        a dependant of a person mentioned in paragraph (ii);

• F42“eligible conveyancer” has the meaning given in paragraph 7 of the Schedule;

• F43“European institution” means a person who is treated as having permission to carry on a regulated activity in the United Kingdom under Part 4A of the Financial Services and Markets Act 2000 by virtue of regulations 8, 11, 28 or 34 of the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018;

• F44“51% subsidiary” and “75% subsidiary” have the same meanings as they do in section 1154 of CTA 2010;

• F45“first subscription”, in any year, means the first subscription into an account in that year which is not a subscription made in accordance with regulation 5D;

• F46“flexible account” has the meaning given in regulation 5DDB;

• “gains", except in regulations 22(1)(a)(ii) to (v) and 35(6), means “chargeable gains"within the meaning of the Taxation of Chargeable Gains Act 1992;

• “gilt-edged securities" has the meaning given by F47paragraphs 1 and 1A of Schedule 9 to the Taxation of Chargeable Gains Act 1992;

• F48“government bonus” has the meaning given in the Schedule;

• F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• an “incorporated friendly society" means a society incorporated under the Friendly Societies Act 1992 M3;

• F50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “innovative finance account” has the meaning given in regulation 4(1ZA);

• “interim permission” is to be construed in accordance with Chapter 4 of Part 8 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013;

• F51“investment trust” means an investment trust within the meaning of section 1158 of the Corporation Tax Act 2010;

• F52“ITA 2007” means the Income Tax Act 2007;

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

• F53“junior ISA account” has the meaning given in regulation 2B;

• F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “lender” is to be construed in accordance with article 36H(9) of the Regulated Activities Order 2001;

• F55“Lifetime ISA” has the meaning given in regulation 4(1ZB);

• “Lifetime ISA payment limit” has the meaning given in regulation 4ZA(1A);

• “Lifetime ISA qualifying individual” has the meaning given in regulation 10A;

• F56“Looked After Child” has the meaning given in regulation 2F (special provision in respect of Looked After Children);

• “the Management Act" means the Taxes Management Act 1970 M4;

• “market value" shall be construed in accordance with section 272 of the Taxation of Chargeable Gains Act 1992;

• F57“named child” means a child who holds an account opened pursuant to a junior ISA application described in regulation 12A;

• “notice", except in F58regulations 9 and 36, means notice in writing and “notify" shall be construed accordingly;

• “operator” means a person who has permission (other than an interim permission) under Part 4A of FISMA 2000 to carry on the regulated activity specified in article 36H(1) of the Regulated Activities Order 2001;

• F59“outstanding principal balance” means, in respect of a qualifying investment for an innovative finance component, the amount in respect of the investment owing to the account investor at any time;

• F60“parental responsibility” means—

  1. (a)

     parental responsibility within the meaning of the Children Act 1989 or the Children (Northern Ireland) Order 1995, or

  2. (b)

     parental responsibilities within the meaning of the Children (Scotland) Act 1995;

• F61“participant”, in relation to a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• “plan shares”, in relation to a Schedule 2 SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003) except that—

  1. (a)

     paragraph 87(6) of Schedule 2 to ITEPA 2003 (meaning of the word “shares” in the context of company reconstructions) shall not apply, and

  2. (b)

     in paragraph 88(2) of that Schedule (treatment of shares acquired under rights issue) the words “or securities or rights” shall be treated as omitted;

• F62“qualifying addition” has the meaning given in the Schedule;

• “qualifying distribution" has the same meaning as in F63section 1136 of the Corporation Tax Act 2010;

• “qualifying investments for an innovative finance component” has the meaning given in regulation 8A;

• “recognised stock exchange" has the same meaning as in F64section 1005 of ITA 2007;

• a “registered friendly society" has the meaning given by the Friendly Societies Act 1992 M5, and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society;

• “Regulated Activities Order 2001” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

• “release date" has the meaning given by section 187(2) of the Taxes Act M6;

• “relevant authorised person" has the same meaning as in F65section 697(2)(b) of ITTOIA 2005;

• F66“replacement subscription” has the meaning given in regulation 5DDB;

• F67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F68“responsible person” means a person who is the responsible person in respect of the management of a junior ISA account in accordance with regulation 2C(4);

• F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F70“Schedule 2 SIP” shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• F71“Schedule 3 SAYE option scheme” shall be construed in accordance with the SAYE code (see section 516(3) of ITEPA 2003);

• “security", except in regulations F727(2)(c) to F73(cc) and (8)(b), 8(2)(f) and 34(3), means any loan stock or similar security of a company whether secured or unsecuredF74, and in regulation 7(2)(cc) has the same meaning but with the omission of the words “of a company”;

• F75“the Stakeholder Products Regulations” means the Financial Services and Markets Act 2000 (Stakeholder Products) Regulations 2004;

• “tax" where neither income tax nor capital gains tax is specified means either of those taxes;

• “tax credit" means a tax credit under section 231 of the Taxes Act M7;

• “the Taxes Act" means the Income and Corporation Taxes Act 1988;

• “transferable security” has the meaning given in section 102A(3) of FISMA 2000;

• F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “year" means a year of assessment, and “the year 1999—00" means the year of assessment beginning on 6th April 1999;

• F77“authorised fund” means—

  1. (i)

     an authorised unit trust, or

  2. (ii)

     an open-ended investment companyF78...;

• “authorised unit trust" means a unit trust scheme in the case of which an authorisation order F79... under section F80243 of the Financial Services and Markets Act 2000 is in force;

• F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F82“collective investment scheme” has the meaning in section 235 of FISMA 2000;

• F83“COLL” means the Collective Investment Schemes Sourcebook made by the Financial Conduct Authority under FISMA 2000;

• F84“depositary interest” means the rights of the person mentioned in paragraph (b), under a certificate or other record (whether or not in the form of a document) acknowledging—

  1. (a)

     that a person holds relevant investments or evidence of the right to them, and

  2. (b)

     that another person is entitled to rights in or in relation to those or identical relevant investments, including the right to receive such investments, or evidence of the right to them or the proceeds from such investments, from the person mentioned in paragraph (a),

• where “relevant investments” means investments which are exclusively qualifying investments for a stocks and shares component falling within any of regulation 7(2)(a) to (h), and the rights mentioned in paragraph (b) are exclusively rights in or in relation to relevant investments;

• F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “FISMA 2000” means the Financial Services and Markets Act 2000;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F86“insolvency event” means the procedures listed in the definition of “insolvency event” in F87regulation 23(18) of the Payment Services Regulations 2017;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F88“long-term asset fund” means a scheme to which chapter 15 of COLL applies;

• F89“non-UCITS retail scheme”—

  1. (a)

     has the meaning in COLL (that is, a scheme to which, or to whose authorised fund manager and depositary, sections 5.1, 5.4 and 5.6 of COLL apply),

  2. (b)

     includes a “recognised scheme” by virtue of section F90271A or F91... 272 of FISMA 2000, which would fall within paragraph (a) of this definition if it were an authorised fund, and

  3. (c)

     includes a sub-fund of an umbrella which the terms of the scheme identify as a sub-fund which would fall within paragraph (a) or (b) of this definition if it were itself an authorised fund or a recognised scheme.

  In this definition, expressions defined in the Glossary of the Financial Conduct Authority Handbook have those defined meanings;

• F92“open-ended investment company” means a company incorporated in the United Kingdom to which section 236 of the Financial Services and Markets Act 2000 applies;

• F93“qualifying units in or shares of a non-UCITS retail scheme” means that—

  1. (a)

     the instrument constituting the scheme secures that redemption of the units or shares in question shall take place no less frequently than bi-monthly (see Rule 6.2.16(6) of the F94... F95COLL omitting the words “Except where (7) applies, and”, read with Rule 6.3.4(1), whether or not those Rules apply to the scheme), and

  2. (b)

     a provision for suspension of dealings in exceptional conditions in accordance with Rule 7.2 of F96the COLL (or any foreign procedure which is a direct foreign equivalent of that Rule) shall not be treated as a provision contrary to paragraph (a) of this definition;

• F97“recognised UCITS” means—

  1. (a)

     F98...

  2. (b)

     an undertaking established in Gibraltar which is a UCITS under the law of Gibraltar which implemented Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities; F99; or

  3. (c)

     F100a recognised scheme by virtue of section 271A or 272 of FISMA 2000 that is a UCITS within the meaning given by section 236A of that Act;

• F101“UK cryptoasset exchange traded note” means a debt security—

  1. (a)

     which is traded on a trading venue or a market operated by a United Kingdom recognised investment exchange,

  2. (b)

     which features no periodic coupon payments, and

  3. (c)

     whose return tracks the performance of an unregulated transferable cryptoasset, minus applicable fees, whether featuring delta 1, inverse or leveraged exposure or other exposure to the unregulated transferable cryptoasset being tracked.

  In this definition, the expressions “debt security”, “trading venue”, “recognised investment exchange” and “unregulated transferable cryptoasset” have the meanings given in the Glossary of the Financial Conduct Authority Handbook as in effect on 8th October 2025;

• F102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “UK UCITS” means—

  1. (a)

     a collective investment scheme F103with Part 4A permission under FISMA 2000, which complies with the requirements to be a “UCITS scheme” for the purposes of F104the COLL; or

  2. (b)

     a part of a UK UCITS mentioned in paragraph (a) of this definition which would be a sub-fund of an umbrella scheme which is a UK UCITS;

• F105“umbrella scheme” means an authorised fund which according to the terms of the scheme is an umbrella scheme belonging to the category under that name established by the F106Financial Conduct Authority, and

  1. (i)

     in the case of an authorised fund which is an authorised unit trust, references to a part of an umbrella scheme shall be construed in accordance with subsection (8) of section 468 of the Taxes Act, F107and sub-paragraphs (6) and (7) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations, and

  2. (ii)

     in the case of an authorised fund which is an open-ended investment company, references to a part of an umbrella scheme shall be construed in accordance with F108subsection (4) of section 468A of the Taxes Act, and sub-paragraphs (2) and (3) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations;

• F109“unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme;

• “unit trust scheme” has the meaning given by section 237 of the Financial Services and Markets Act 2000;

• “units", in relation to an authorised unit trust, means the rights or interests (however described) of the unit holders in that authorised unit trust and, in relation to a part of an umbrella scheme, means the rights or interests for the time being of the unit holders in that part;

• “units in, or shares of, a F110... F111UK UCITS or recognised UCITS" means the rights or interests (however described) of the holders of the units or shares in that ... UK UCITS or recognised UCITS;

• F112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In these Regulations—

The Table below indexes other definitions in these Regulations: