UK Treasury Individual Savings Account


On Oct. 14, UK Treasury issued Individual Savings Account regulation.


  • UK Treasury issued statutory instrument (StIn 2024/1022) relating to the Individual Savings Account (Amendment) (No. 2) Regulations 2024, and explanatory memo.
  • Follows UK Treasury Mar. 2024, amend individual savings account regs, see #204412.
  • Purpose of Instrument
  • This instrument amends the Individual Savings Account Regulations 1998 (ISA Regulations) to bring into effect the Autumn Statement 2023 announcement.
  • In order to allow fractional interests in an ISA, clarify position in cases of doubt around transfers of ISAs and provide additional safeguards for investors and ISA managers.
  • Amends ISA Regulations to provide that fractional interests or fractional shares in certain defined investments qualify for inclusion in an ISA, among other things.
  • Also, clarifies the position on the transfer of accounts between ISA managers.
  • In addition, sets out protecting the integrity of the tax-free savings landscape by requiring National Insurance numbers to be provided when opening an account.
  • Effectiveness
  • Statutory Instrument comes into force on Nov. 4, 2024.
  • Oct. 15, 2024 Impact Note on ISA Regulation
  • On Oct. 15, 2024, UK HMRC issued policy paper on impact and tax details re Individual Savings Account and Child Trust Funds (Amendment No 2) Regulations 2024.
  • In terms of new applications, measure will allow certain fractional interests in shares (fractional shares) to be held in a stocks and shares ISA and Child Trust Fund (CTF).
  • Requires ISA managers to get a National Insurance number on new ISA applications from all investors who are eligible to have one, and updates rules on subscriptions.
  • Specifically transfer of current year subscriptions from one ISA manager to another.

Regulators UK HMRC; UK Treasury
Entity Types Bank; CNSM; IA; Inv Co
Reference PS 10/15/2024; StIn 2024/1022, 10/14/2024; Citation: StIn 2024/1022;
Functions Compliance; Financial; Legal; Operations; Product Administration; Product Design; Risk; Tax; Treasury
Countries United Kingdom
Category
State
Products Banking; Deposits; Fund Mgt; Retirement Plan; Securities
Regions EMEA
Rule Type Final
Rule Date 10/14/2024
Effective Date 11/4/2024
Rule Id 229844
Linked to Rule :204412
Reg. Last Update 10/15/2024
Report Section UK

Last substantive update on 10/18/2024