2001 No. 3778

INCOME TAX

The Individual Savings Account (Amendment No. 2) Regulations 2001

Made

Laid before the House of Commons

Coming into force

The Treasury, in exercise of the powers conferred upon them by section 333 of the Income and Corporation Taxes Act 19881 and section 151 of the Taxation of Chargeable Gains Act 19922, hereby make the following Regulations:

Citation and commencement1

These Regulations may be cited as the Individual Savings Account (Amendment No. 2) Regulations 2001 and shall come into force on 19th December 2001.

Interpretation2

In these Regulations “the principal Regulations” means the Individual Savings Account Regulations 19983 and “regulation” means a regulation of the principal Regulations.

Amendment of the principal Regulations3

1

Amend the principal Regulations as follows.

2

In regulation 7(2)4 after sub-paragraph (j) add—

k

investments which—

i

were held under a stocks and shares component on 28th November 2001,

ii

on that date were admitted to trading on a recognised stock exchange in an EEA State and were not listed by a competent authority in an EEA State for the purposes of Council Directive 2001/345,

iii

since that date have not ceased to be so admitted and have not become so listed,

iv

do not fall within any of the other sub-paragraphs of this paragraph, and

v

are not investments which, having fallen within any of those sub-paragraphs, have ceased so to fall on or after that date.

Tony McNultyJohn HeppellTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Regulations)

These Regulations amend the Individual Savings Account Regulations 1998 (S.I.1998/1870). On 28th November 2001 the Revenue adopted a revised interpretation of the term “listed on a recognised stock exchange” and other similar phrases. Consequently, investments admitted to trading on a recognised stock exchange in an EEA State which are not listed by a competent authority would, without more, cease to constitute qualifying investments. In order to protect existing investments these Regulations permit such investments held under a stocks and shares component on the date the revised view took effect to remain qualifying investments.