The Individual Savings Account (Amendment) Regulations 1998

Amendments to the principal Regulations

7.—(1) Regulation 9 shall be amended as follows.

(2) In paragraph (3)(b)(ii) for the words from “the policy” where they secondly appear to the end there shall be substituted the words “it comes to the notice of the account manager, in any manner, that either of the events specified in paragraph (8) has occurred in relation to the policy;”.

(3) For paragraph (7), the following paragraphs shall be substituted–

“(7) Where either of the events specified in paragraph (8) occurs in relation to a policy, the policy shall nevertheless be treated, for the purposes of these Regulations, excepting paragraphs (3)(b)(ii) and (8) and regulation 36, as if it had satisfied the conditions in paragraph (3)(b)(i) during the period–

(a) commencing at the time at which the specified event occurred, and

(b) ending immediately before–

(i) the end of the final year in relation to the policy, within the meaning of section 546(4) of the Taxes Act(1), or

(ii) the time at which the specified event came to the notice of the account manager,

whichever first occurs (the “termination event”).

(8) The events specified in this paragraph are–

(a) that the policy has ceased to be one in respect of which the conditions in paragraph (3)(b)(i) are satisfied; and

(b) that those conditions were not satisfied in relation to the policy at the date on which the insurance was made.

(9) Where–

(a) it comes to the notice of the account manager, in any manner, that an event specified in paragraph (8) has occurred in relation to a policy, and

(b) the account manager is not the insurer for the time being responsible for the obligations under the policy or, where the policy is not still in existence, the person who was the last such insurer,

the account manager shall, within 30 days of the event coming to his notice, give notice to that insurer, specifying the event mentioned in sub-paragraph (a), and the termination event.”

(1)

1988 c. 1.