The Individual Savings Account (Amendment) (No. 2) Regulations 2012

Amendments to the Individual Savings Account Regulations 1998

16.  In regulation 21 (transfers relating to accounts other than junior ISA accounts)—

(a) in paragraph (4B)(b), for “regulation 4(3)” substitute “regulation 4ZA”;

(b) after paragraph (4C), insert—

“(4CA) Regulation 12(1) does not prevent the current year’s subscriptions and the previous years’ subscriptions being transferred to an account that was held immediately before the transfer but to which no subscription has been made in the year in which the transfer occurs or the year immediately before that year.”;

(c) after “shall” in paragraph (4D), insert “, subject to paragraph (4DA),”;

(d) after paragraph (4D), insert—

“(4DA) Paragraph (4D) does not apply where—

(a) an account is transferred in a bulk transfer of accounts;

(b) a cash account (whether or not in a bulk transfer of accounts) is transferred to a cash account held with the transferee immediately before the time when the transfer is made;

(c) a stocks and shares account (whether or not in a bulk transfer of accounts) is transferred to a stocks and shares account held with the transferee immediately before the time when the transfer is made; or

(d) a cash account is transferred (otherwise than in a bulk transfer of accounts) to a stocks and shares account held with the transferee immediately before the time when the transfer is made.

(4DB) Where an account is transferred in a bulk transfer of accounts that is not also a transfer described in paragraph (4DA)(b) or (c), a subscription to the account after the transfer may only be made if—

(a) the subscription is made after the account investor has, during the period of time determined in accordance with paragraph (4DC), made an application to the transferee in relation to the account in accordance with regulation 12 (with any necessary modifications where appropriate to reflect that the account has been transferred in a bulk transfer of accounts);

(b) the subscription is made in the year immediately following a year in which a subscription has been made to the account other than a subscription permitted by virtue of paragraph (4DE); or

(c) the subscription is permitted by virtue of paragraph (4DE).

(4DC) The period of time referred to in paragraph (4DB)(a) is the period—

(a) starting at the beginning of the year immediately preceding the year in which the subscription is made, and

(b) ending immediately before the subscription is made.

(4DD) For the purposes of paragraphs (4DB) and (4DE), the current year’s subscriptions and the previous years’ subscriptions transferred are not subscriptions to the account.

(4DE) A subscription to an account is permitted by this paragraph if—

(a) the account has been transferred to the transferee in a group transfer of accounts;

(b) the most recent application in accordance with regulation 12 relating to the transferred account made before its transfer is available to the transferee; and

(c) the subscription is made—

(i) in the year in which the account is transferred (provided a subscription has been made to the account in that year before the account was transferred); or

(ii) in a year immediately following a year in which a subscription has been made to the transferred account (including a subscription made before the transfer).

(4DF) For the purposes of paragraph (4DE)(b), an application in accordance with regulation 12 as described in that paragraph is available to a transferee if—

(a) paragraph (4DG) or (4DH) applies; and

(b) the transferor has advised the transferee whether a subscription has been made to the transferred account in the year immediately preceding the year in which the transfer takes place.

(4DG) This paragraph applies where the application described in paragraph (4DE)(b) (or a copy of it) is held by the transferee.

(4DH) This paragraph applies where—

(a) the application described in paragraph (4DE)(b) (or a copy of it) is held by the transferor; and

(b) the transferee can require the transferor to make it available to the transferee for any purpose necessary to ensure the transferee’s compliance with these regulations.

(4DI) An account transferred in accordance with this regulation in a bulk transfer of accounts is an account opened in accordance with regulation 12 for the purposes of these Regulations whether or not an application in accordance with regulation 12 as described in paragraph (4DB)(a) is made. ”;

(e) for paragraph (5), substitute—

“(5) Where an account is transferred, the transferor must, subject to paragraph (5B), give to the transferee a notice containing the information specified in paragraph (6) before the relevant time specified in paragraph (5A).

(5A) The relevant time specified in this paragraph is—

(a) in the case of an account transferred in a bulk transfer of accounts, the time of the transfer;

(b) in any other case, the expiry of 30 days after the day of the transfer.

(5B) Paragraph (5) does not apply where a transferor provides information to a transferee in accordance with regulation 21A(2)(b)(ii).”.