[F1[F2Additional permitted subscription to an account other than a junior ISA accountU.K.

5DDA.—(1) A subscription to an account other than a junior ISA account is permitted by this regulation if—

(a)it is made in the circumstances described in paragraph (2); and

(b)the amount of the subscription, or the aggregate of a number of such subscriptions, does not exceed in value the amount determined in accordance with paragraph (3).

(2) The circumstances are—

(a)an account investor dies on or after 3rd December 2014 leaving a surviving spouse or civil partner (S);

(b)subject to paragraph (6), a subscription is made by S to an account or accounts managed by a single account manager or, in a case within sub-paragraph (e), the deceased’s account manager;

(c)the subscription is within the permitted period;

(d)S and the deceased were living together at the date of the deceased’s death; and

(e)where the subscription comprises non-cash assets—

(i)the deceased held an account either comprising or including non-cash assets at the date of the deceased’s death;

(ii)S inherits all or part of those assets;

(iii)S makes a subscription comprising those assets or any part therof; F3...

(iv)throughout the period beginning with the day on which the deceased’s account manager was notified of the deceased’s death and ending immediately before the subscription is made, title to those assets is vested in the deceased’s account manager, that manager’s nominee or jointly in one of them and another[F4; and]

[F5(v)[F6in the case of non-cash assets comprised or included in an innovative finance account, other than those specified in regulation 8A(2)(cb)], paragraph (iv) shall apply but with the words from “title to” to “and another.” being substituted by “those assets remain under the management of the deceased’s account manager.]

(3) The amount is—

(a)where the deceased held a single account with a single account manager, then the value of that account at the date of the deceased’s death [F7or, in the event that the period for an administration-period investment in a continuing account of a deceased investor with an account manager ends and S has not made a subscription under paragraph (1), immediately before the account ceasing to be a continuing account of a deceased investor (whichever is the higher)]; or

(b)where the deceased held more than one account with a single account manager, then the combined value of those accounts at the date of the deceased’s death [F8or, in the event mentioned in paragraph 3(a) occurring, immediately before the account ceasing to be a continuing account of a deceased investor (whichever is the higher)];

but does not include any sums the deceased held in a junior ISA account.

[F9(3A) For the purposes of paragraph (3), the value of any qualifying investments for an innovative finance component, other than those specified in regulation 8A(2)(cb) and (d), is the outstanding principal balance under those investments in respect of which payments are due to be made to the account manager.]

[F10(3B) For the purposes of paragraph (3) the value of a Lifetime ISA at the date of the deceased’s death [F11or, in the event mentioned in paragraph 3(a) occurring, immediately before the account ceasing to be a continuing account of a deceased investor (whichever is the higher)] includes any government bonus that has accrued to the date of death but has not been paid.]

(4) In this regulation, the permitted period means—

(a)in the case of a subscription comprising non-cash assets made in accordance with paragraph (2), the period beginning with distribution to S by the deceased’s estate of the non-cash assets and ending no more than 180 days thereafter;

(b)in the case [F12of] any other subscription under this regulation, the period beginning with the date of the deceased’s death and ending either—

(i)no more than 3 years thereafter; or

(ii)no more than 180 days after administration of the estate is complete;

whichever is the later.

(5) Where the deceased died in the period beginning with 3rd December 2014 and ending on 5th April 2015—

(a)for the purposes of paragraph (4)(a), distribution to S by the deceased’s estate of non-cash assets is treated as occurring on either 6th April 2015, or, the actual date of distribution, whichever is the later; and

(b)for the purposes of paragraph(4)(b), the deceased is treated as dying on 6thApril 2015.

(6) The requirement in paragraph (2)(b) is deemed as met where the Board authorises an account manager to accept a subscription from S.

(7) The following regulations do not apply to a subscription permitted by this regulation—

F13(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)6(3);

F14(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) In this regulation—

(a)“inherits” in paragraph (2)(e)(ii) includes inherits under a will trust or as a result of a deed of variation;

(b)“non-cash assets” means—

(i)those investments specified in regulation 7, other than those in paragraph (2)(j); and

(ii)those investments specified in regulation 8(2)(f), (h), (p) or (q); and

[F17(iii)the right to exercise the rights of the lender in respect of the outstanding principal balance under an article 36H agreement; and]

[F18(iv)those investments specified in regulation 8A(2)(ca) [F19or (cb)]; and]

(c)the value of a subscription comprising non-cash assets made pursuant to paragraph (2) is the value of the assets at the date of the subscription.]]

Textual Amendments

F3Word in reg. 5DDA(2)(e)(iii) omitted (6.4.2016) by virtue of The Individual Savings Account (Amendment No. 2) Regulations 2016 (S.I. 2016/364), regs. 1, 8(a)(i)

F4Word in reg. 5DDA(2)(e)(iv) substituted for full stop (6.4.2016) by The Individual Savings Account (Amendment No. 2) Regulations 2016 (S.I. 2016/364), regs. 1, 8(a)(ii)