The Individual Savings Account (Amendment No. 2) Regulations 2004

Amendment of the Individual Savings Account Regulations 1998

6.  After regulation 4B(1) insert—

“Removal of insurance components at 6th April 2005

4C.— (1) This regulation applies to accounts which include (or are made up of) an insurance component immediately before 6th April 2005 (“the transitional time”).

(2) Where all the policies of life insurance falling within regulation 9, held under the component at the transitional time, were issued in respect of an insurance made before 6th April 2004, the component—

(a) if the account is, or had been, designated as a maxi-account, shall be treated on and from 6th April 2005 as merged into the stocks and shares component for that account; and

(b) if the account is, or had been, designated as a mini-account, shall be treated on and from 6th April 2005 as a stocks and shares component of the same account.

(3) Where any of the policies of life insurance falling within regulation 9, held under the component at the transitional time, were issued in respect of an insurance made on or after 6th April 2004—

(a) the condition in regulation 7(15) shall be applied to those policies on 6th April 2005 (modified as if the date referred to in that condition were 6th April 2005);

(b) if all those policies satisfy that condition, paragraph (2)(a) or (b), as the case may be, shall apply to the component;

(c) if any of those policies does not satisfy that condition, the component—

(i) if the account is, or had been, designated as a maxi-account including a cash component, shall be treated on and from 6th April 2005 as merged into the cash component for that account; and

(ii) in any other case, shall be treated on and from 6th April 2005 as a cash component for the same account.”.

(1)

Regulation 4B was inserted by regulation 4 of S.I. 2002/3158.