The Individual Savings Account Regulations 1998

Conditions for application to subscribe to an account U.K.

12.—(1) An application by an individual to subscribe to an account in the year in which he first subscribes to that account, and in the year following a year in which that individual has not subscribed to the account, must be made to an account manager in a statement and, subject to paragraph (5), must fulfil the conditions specified in paragraphs (2), (3) and (4).

(2) An application must specify the first year to which the application relates.

(3) An application shall provide for a declaration by the applicant that—

(a) his application is to subscribe to a maxi-account, a mini-account made up of a specified component or a TESSA only account, as the case may be;

(b) the declaration shall have effect for the year to which paragraph (2) refers, and each successive year following that year, in which the applicant subscribes to the account;

(c) all cash subscriptions made, and to be made, to the account are the applicant’s cash;

(d) in the case of a maxi-account, the applicant—

(i) has not subscribed, and will not subscribe, to any other account, not being a TESSA only account, in the year to which paragraph (2) refers, and

(ii) will not subscribe to any other account, not being a TESSA only account, in each successive year following that year, during which the declaration has effect;

(e) in the case of a mini-account, the applicant—

(i) has not subscribed, and will not subscribe, to any other account, not being a mini-account made up of a different type of component than that specified in accordance with sub-paragraph (a) or a TESSA only account, in the year to which paragraph (2) refers, and

(ii) will not subscribe to any such other account as is referred to in paragraph (i), in each successive year following that year, during which the declaration has effect;

[F1 (f) the applicant is 16 years of age or over, and—

(i) is resident and ordinarily resident in the United Kingdom, or

(ii) is a person who performs duties which, by virtue of section 132(4)(a) of the Taxes Act, are treated as being performed in the United Kingdom, or

(iii) is married to a person mentioned in paragraph (ii),

and will inform the account manager if he ceases to be so resident and ordinarily resident, or to perform such duties, or to be married to a person who performs such duties, as the case may be;]

(g) the applicant authorises the account manager—

(i) to hold the applicant’s cash subscription, account investments, interest, dividends and any other rights or proceeds in respect of those investments and any other cash;

(ii) to make on his behalf any claims to relief from tax in respect of account investments;

F2 (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) where the application is not in writing, to record the terms of the declaration in a written declaration made on behalf of the applicant.

(4) An application must contain—

(a) the applicant’s full name,

(b) the address of his permanent residence, including postcode,

(c) his national insurance number, or confirmation that he does not have one, and

(d) his date of birth.

(5) In the case of an application to subscribe by way of applying the proceeds from a matured tax-exempt special savings account within regulation 5(1)(a), (b) or (c), where the account matured on or after 6th January 1999 but before 6th April 1999, the declaration in paragraph (3) shall be modified by including a statement that the applicant has not opened, and will not open, a follow-up account.

(6) An account manager may not accept as an account investor any individual if he has reason to believe that—

(a) he is not or might not be a qualifying individual, or

(b) he has given untrue information in his application.

(7) Where paragraph (3)(g)(iv) applies, the account manager shall make the written declaration therein referred to, and send a copy to the applicant and, subject to any corrections notified by the applicant to the account manager within the period of 30 days from the date the copy is sent, and incorporated in a new declaration made by the account manager, any such declaration shall take effect as from the date on which the original declaration was made as a declaration made on behalf of the applicant.

(8) Section 95 of the Management Act M1 shall have effect as if—

(a) the statement and declarations to which paragraphs (1), (3) and (7) refer were a statement or declarations, as the case may be, within the meaning of subsection (1)(b), and

(b) there were substituted for subsection (3) the following words—

“(3) The relevant years of assessment for the purposes of this section are the year of assessment in respect of which any claim to relief or exemption from tax in connection with which the statement or declarations are relevant, is made, the next following, and any preceding year of assessment.”

[F3 (9) An application furnished by an individual under this regulation F4 ... shall be regarded as in writing if it is furnished—

(a) by telephonic facsimile transmission containing the signature of the individual, or

(b) by electronic communication containing an electronic signature of the individual.

(10) Declarations made by the account manager under paragraph (3)(g)(iv) of this regulation F5 ... shall be regarded as made in writing if they are produced by electronic means, and the copy of a declaration to be sent to the individual in accordance with paragraph (7) of [F6 this regulation] may be sent by telephonic facsimile transmission or by electronic communication.

(11) In this regulation—

• [F7 “electronic communication” includes any communication conveyed by means of an electronic communications network.]

• “electronic signature” has the meaning given by section 7(2) of the Electronic Communications Act 2000.]

[F8 (12) An application may be made on behalf of an individual who is suffering from mental disorder, by a parent, guardian, spouse, son or daughter of the individual, and shall be treated for the purposes of these Regulations as an application made by the individual.

(13) In paragraph (12) “mental disorder” has the meaning given by section 1(2) of the Mental Health Act 1983 or, in Scotland, section 1(2) of the Mental Health (Scotland) Act 1984 or, in Northern Ireland, Article 3 of the Mental Health (Northern Ireland) Order 1986.]

Textual Amendments

F1 Reg. 12(3)(f) substituted (6.4.2001) by The Individual Savings Account (Amendment) Regulations 2001 (S.I. 2001/908), regs. 1, 6(a)

F2 Reg. 12(3)(g)(iii) omitted (1.10.2002) by virtue of The Individual Savings Account (Amendment No. 2) Regulations 2002 (S.I. 2002/1974), regs. 1(2), 4

F3 Reg. 12(9)-(11) added (6.4.2001) by The Individual Savings Account (Amendment) Regulations 2001 (S.I. 2001/908), regs. 1, 6(b)

F4 Words in reg. 12(9) omitted (8.1.2003) by virtue of The Individual Savings Account (Amendment No. 3) Regulations 2002 (S.I. 2002/3158), regs. 1(2), 5(a)

F5 Words in reg. 12(10) omitted (8.1.2003) by virtue of The Individual Savings Account (Amendment No. 3) Regulations 2002 (S.I. 2002/3158), regs. 1(2), 5(b)

F6 Words in reg. 12(10) substituted (8.1.2003) by The Individual Savings Account (Amendment No. 3) Regulations 2002 (S.I. 2002/3158), regs. 1(2), 5(b)

F7 Words in reg. 12(11) substituted (17.9.2003) by The Communications Act 2003 (Consequential Amendments) Order 2003 (S.I. 2003/2155), art. 1(1), Sch. 1 para. 24(1)(c)(2)

F8 Reg. 12(12)(13) added (8.1.2003) by The Individual Savings Account (Amendment No. 3) Regulations 2002 (S.I. 2002/3158), regs. 1(2), 5(c)

Marginal Citations

M1 1970 c.9; section 95 was amended by section 148 of and Schedule 14 Part VIII to the Finance Act 1988 (c.39), by section 163 of the Finance Act 1989 (c.26) and sections 196 and 199 of, and paragraph 27 of Schedule 19, and Schedule 26 Part V(23), to the Finance Act 1994 (c.9).