These Regulations amend the Individual Savings Account Regulations 1998 (S.I. 1998/1870) (“the ISA Regulations”) in relation to the overall limits to subscriptions which individuals can make to individual savings accounts (“ISAs”) which they hold in any tax year. The main effect of these Regulations is to increase the ISA subscription limits for the tax year 2011-12 and subsequent tax years. For individuals aged 18 or over at the end of the tax year the annual overall limit is increased to £10,680, of which 50% (£5,340) can be invested in a cash ISA. For individuals aged between 16 and 18, who may only invest in cash ISAs, the overall annual ISA subscription limit is increased to £5,340.

Regulation 2 provides that these Regulations take effect for the tax year 2011-12 and all subsequent tax years.

Regulation 4 substitutes new regulations 4(2) and (3) into the ISA Regulations so as to increase the ISA subscription limits for individuals and Regulation 5 omits regulation 4(4) from the ISA Regulations, which is an illustrative provision only.

An Impact Assessment has not been produced for this instrument as it has a negligible impact on business, charities or voluntary bodies.