The Individual Savings Account (Amendment) (No. 2) Regulations 2012

Amendments to the Individual Savings Account Regulations 1998

18.  In regulation 21B (transfers relating to junior ISA accounts)—

(a) in paragraph (8), after “shall” insert “, subject to paragraph (8A),”;

(b) after paragraph (8), insert—

“(8A) Paragraph (8) does not apply where an account is transferred in a bulk transfer of accounts.

(8B) Where an account is transferred in a bulk transfer of accounts, a subscription to the account after the transfer may only be made if—

(a) an application to the transferee in relation to the account in accordance with regulation 12A (with any necessary modifications where appropriate to reflect that the account has been transferred in a bulk transfer of accounts) has been made; or

(b) the subscription is permitted by virtue of paragraph (8D).

(8C) For the purposes of paragraphs (8B) and (8E), the current year’s subscriptions and the previous years’ subscriptions transferred are not subscriptions to the account.

(8D) A subscription to an account is permitted by this paragraph where—

(a) the account has been transferred to the transferee in a group transfer of accounts; and

(b) the most recent application in accordance with regulation 12A relating to the transferred account made before its transfer is available to the transferee.

(8E) For the purposes of paragraph (8D)(b), an application in accordance with regulation 12A as described in that paragraph is available to a transferee if—

(a) paragraph (8F) or (8G) applies; and

(b) the transferor has advised the transferee whether a subscription has been made to the transferred account in the year immediately preceding the year in which the transfer takes place.

(8F) This paragraph applies where the application described in paragraph (8D)(b) (or a copy of it) is held by the transferee.

(8G) This paragraph applies where—

(a) the application described in paragraph (8D)(b) (or a copy of it) is held by the transferor; and

(b) the transferee can require the transferor to make it available to the transferee for any purpose necessary to ensure the transferee’s compliance with these regulations.

(8H) An account transferred in accordance with this regulation in a bulk transfer of accounts is a junior ISA account opened pursuant to an application in accordance with regulation 12A for the purposes of these Regulations whether or not an application in accordance with regulation 12A as described in paragraph (8B)(a) is made.”;

(c) for paragraph (10), substitute—

“(10) Where an account is transferred, the transferor must, subject to paragraph (10B), give to the transferee a notice containing the information specified in paragraph (11) before the relevant time specified in paragraph (10A).

(10A) The relevant time specified in this paragraph is—

(a) in the case of an account transferred in a bulk transfer of accounts, the time of the transfer;

(b) in any other case, the expiry of 30 days after the day of the transfer.

(10B) Paragraph (10) does not apply where a transferor provides information to a transferee in accordance with regulation 21A(2)(b)(ii).”;

(d) for paragraph (11)(b)(iv), substitute—

“(iv) the date on which the subscription described in paragraph (12) was made (if appropriate), and”;

(e) after paragraph (11), insert—

“(12) The subscription referred to in paragraph (11)(b)(iv) is the first subscription to the account provided the subscription is made in the same year as the transfer.”.