The Individual Savings Account (Amendment) Regulations 2003

Citation, commencement and effect

6.  At the end of regulation 7 add—

“(14) Qualifying investments for a stocks and shares component falling within sub-paragraph (ha) of paragraph (2), so far as the relevant investments (within the meaning given in the definition of “depositary interest”) fall within any of sub-paragraphs (e), (f), (g) or (ga) of that paragraph, must satisfy the condition specified in paragraph (15).

(15) The condition specified in this paragraph is that, during the period of five years from the date on which the qualifying investments in question were first held in the account, there was no time when—

(a) the contract under which the investments were acquired, or any other transaction entered into at any time by the account investor or any other person, or

(b) the nature of the underlying subject matter of the investments,

had the effect that the account investor was not exposed, or not exposed to any significant extent, to the risk of loss from fluctuations in the value of the investments exceeding 5% of the capital consideration paid or payable for the acquisition of those investments.

(16) In this regulation references, in relation to qualifying investments, to—

(a) the underlying subject matter are references to or to the value of the investments, currencies or other matters to which, or to the value of which, those qualifying investments or their value is referable;

(b) the capital consideration paid include the incidental costs of acquisition; and

(c) the value are to be construed applying regulation 6(2), but deducting the incidental costs that would be incurred by a disposal.”.