Qualifying investments for a cash componentU.K.
8.—(1) This regulation specifies the kind of investments (“qualifying investments for a cash component") which may be purchased, made or held under a cash component.
(2) Qualifying investments for a cash component to which paragraph (1) refers are, subject to paragraph (3)—
(a)cash deposited in a deposit account with a building society, or [F1a person falling within section 840A(1)(b) of the Taxes Act] or a relevant European institution;
(b)cash deposited in a share account with a building society;
[F2(c)units in, or shares of, a money market scheme;]
[F3(d)units in, or shares of, a fund of funds scheme, within the meaning given in regulation 2(1)(b), with the modification that for the words from “comply with” to the end there are substituted the words
“permit the investments of the scheme, or subject to the trusts of the scheme, to consist only of units in, or shares of, money market schemes;”.]
[F4(e)such investment deposits with the National Savings Bank which, according to the terms and conditions subject to which they are made, are expressly permitted to be held under a cash component of an account;
(f)any securities issued under the National Loans Act 1968–
(i)for the purpose of or in connection with raising money under the auspices of the Director of Savings within the meaning of section 11(1)(a) of the National Debt Act 1972, and
(ii)other than national savings certificates, premium savings bonds, national savings stamps and national savings gift tokens,
which, according to the terms and conditions subject to which they are issued and purchased, are expressly permitted to be held under a cash component of an account.]
(3) A deposit account or share account which is a qualifying investment for a cash component falling within paragraph (2)(a) or (b) respectively must not be connected with any other account falling within the descriptions in those sub-paragraphs, held by the account investor or any other person, and for this purpose such an account is connected with another if—
(a)either was opened with reference to the other, or with a view to enabling the other to be opened on particular terms, or with a view to facilitating the opening of the other on particular terms, and
(b)the terms on which the first-mentioned account in this paragraph was opened would have been significantly less favourable to the holder if the other had not been opened.
Textual Amendments
F1Words in reg. 8(2)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), arts. 1(2)(b), 173(a)
F2Reg. 8(2)(c) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), arts. 1(2)(b), 173(b)
F3Reg. 8(2)(d) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), arts. 1(2)(b), 173(c)
F4Reg. 8(2)(d)-(f) substituted for reg. 8(2)(d)(e) (6.4.1999) by The Individual Savings Account (Amendment) Regulations 1998 (S.I. 1998/3174), regs. 1, 6