The Individual Savings Account (Amendment No. 2) Regulations 2017

New regulation 10A

21.  After regulation 10 insert—

“Lifetime ISA qualifying individuals who may invest under a Lifetime ISA

10A.— (1) This regulation specifies the description of individual (“Lifetime ISA qualifying individual”) who may invest under a Lifetime ISA.

(2) A Lifetime ISA qualifying individual to whom paragraph (1) refers is an individual who—

(a) is 18 years of age or over;

(b) in relation to a current year payment is under 50 years of age;

(c) in relation to a current year payment or a payment under paragraph (4)(c), has not made, and will not make, any such payment to any other Lifetime ISA in the year in which the payment is made;

(d) has not exceeded the overall subscription limit in regulation 4ZA(1)(1) in that year;

(e) has not exceeded the overall Lifetime ISA payment limit in regulation 4ZA(1A)(2) in that year; and

(f) in relation to a current year payment or a payment under paragraph (4)(c), is resident in the United Kingdom or, if not so resident—

(i) is a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003(3), or

(ii) is married to or in a civil partnership with a person mentioned in paragraph (i).

(3) Subject to paragraph (4), the following are current year payments—

(a) a subscription of money;

(b) a subscription of shares to which regulation 7(2)(h)(4) applies;

(c) a subscription to which regulation 5D(5) applies;

(d) an additional permitted subscription in accordance with regulation 5DDA(6);

(e) a replacement subscription in accordance with regulation 5DDB(7);

(f) an additional permitted subscription on closure of a Help to Buy ISA in accordance with regulation 5DDC(8); and

(g) a transfer of qualifying investments for a Lifetime ISA component from an account which is not a Lifetime ISA.

(4) The following are not current year payments—

(a) a defaulted Lifetime ISA subscription under regulation 5D(2)(a)(ia);

(b) a returned withdrawal under regulation 5D(2)(a)(ib); and

(c) the first or only transfer from a Help to Buy ISA (as described in regulation 5DDC(6)) to a Lifetime ISA in the year 2017-18 in an amount not exceeding the balance on the Help to Buy ISA as at 5th April 2017 plus accrued interest.”.

(1)

The subscription limit in regulation 4ZA(1) was most recently substituted by S.I. 2015/608 and is amended by these regulations.

(2)

Regulation 4ZA(1A) is inserted by these Regulations.

(3)

Regulation 2 of S.I. 1998/1870 defines ITEPA 2003 as meaning the Income Tax (Earnings and Pensions) Act 2003 (2003 c. 1); section 28(5) and (6) was amended by paragraph 102(2) and (3)(a) of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11).

(4)

Regulation 7(2)(h) was amended by paragraph 86 of Schedule 8 to the Finance Act 2014 (c. 26) and S.I. 2000/2079, 2008/704 and 2011/1780.

(5)

Regulation 5D was inserted by S.I. 2012/1871 and amended by S.I. 2015/869, 2015/941 and 2016/16.

(6)

Regulation 5DDA was inserted by S.I. 2015/869 and amended by S.I. 2016/16 and 2016/364.

(7)

Regulation 5DDB was inserted by S.I. 2016/16 and amended by S.I. 2016/364.

(8)

Regulation 5DDC was inserted by S.I. 2016/16.