The Individual Savings Account (Amendment No. 2) Regulations 2011

Amendments to the Individual Savings Account Regulations 1998

7.  In regulation 4 (general conditions for accounts)—

(a) for paragraph (1) substitute—

“(1) An account is a scheme of investment, to which a subscription may be made, and in respect of which—

(a) the conditions and requirements contained in paragraphs (1A) and (5) to (8) are fulfilled; and

(b) either—

(i) the conditions contained in paragraph (1B) are fulfilled, or

(ii) at the time when the subscription to the account is made, the account is a junior ISA account.”;

(b) after paragraph (1) insert—

“(1A) The conditions in this paragraph are—

(a) the account is set up as a stocks and shares account or a cash account;

(b) a stocks and shares account is made up of a single stocks and shares component only;

(c) a cash account is made up of a single cash component only;

(d) the application to open the account is made in accordance with regulation 12 or 12A.

(1B) The conditions in this paragraph are—

(a) a qualifying individual who is 16 or over may only subscribe to a single cash account that is not a junior ISA account in a particular year;

(b) a qualifying individual who is 18 or over may only subscribe to a single stocks and shares account that is not a junior ISA account in a particular year;

(c) it is an account to which only one qualifying individual subscribes;

(d) subject to regulation 7(2)(h), it is an account to which the qualifying individual subscribes only by payment to the account manager of a sum or sums of the individual’s cash; and

(e) the subscriptions made by the qualifying individual to accounts (ignoring transfers and payments from account managers to the individual) do not in the aggregate in any year exceed the subscription limits in regulation 4ZA(1) and (2).”;

(c) omit paragraphs (2) and (3);

(d) in the opening words of paragraph (6) for “include the following conditions” substitute “secure”;

(e) for paragraph (6)(a) substitute—

“(a) that the account investments shall be in the beneficial ownership of—

(i) in the case of an account that is not a junior ISA account, the account investor; or

(ii) in the case of a junior ISA account, the named child;”;

(f) at the beginning of paragraph (6)(b)(i), insert “in relation to an account that is not a junior ISA account,”;

(g) at the end of paragraph (6)(b)(i), after “account investor,” insert—

“(ia) in relation to an account that is a junior ISA account, title to all investments shall be vested in the account manager or his nominee or jointly in one of them and either one of the registered contact or named child to the account in question as the account manager considers appropriate,”;

(h) in paragraph (6)(f) for “regulation 21” substitute “regulation 21 or 21B”.