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.
