The Individual Savings Account (Amendment No. 2) Regulations 2008

• Citation: S.I. 2008/1934
• Sections: 6

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Individual Savings Account (Amendment No. 2) Regulations 2008 and shall come into force on 12th August 2008.

(2) Regulation 3 has effect in relation to events occurring on and after 13th September 2007.

Section 2 Amendment of the Individual Savings Account Regulations 1998 ( S.I. 1998/1870 )

The Individual Savings Account Regulations 1998 are amended as follows.

Section 3 Insertion of regulation 5A

Insert the following regulation after regulation 4D —

Treatment of certain sums held in accounts managed by Northern Rock plc

(5A)

(1) This regulation applies if—

(a) at the beginning of 13th September 2007, an account investor had an investment in an account for which Northern Rock was the account manager,

(b) during the period beginning on 13th September 2007 and ending on 19th September 2007, the account investor withdrew an amount (the “earlier amount”) from the account, and

(c) during the period beginning on 13th September 2007 and ending on 5th April 2008, the account investor subscribed an amount (the “later amount”) to an account (whether the account manager for the account to which the later amount was subscribed was Northern Rock or some other person (the “new account manager”)).

(2) If the account manager for the account mentioned in paragraph (1)(c) was the new account manager, the account investor must also give the certificate specified in paragraph (3) to the new account manager.

(3) The certificate is a certificate, given by Northern Rock, containing the following information—

(a) the account holder’s full name;

(b) the account holder’s date of birth;

(c) the account holder’s permanent address (including postcode);

(d) the account holder’s national insurance number (if the account holder has one);

(e) the earlier amount;

(f) the date (or dates) within the period specified in paragraph (1)(b) on which the earlier amount was withdrawn.

(4) The later amount does not count towards the subscription limits for the year 2007-08.

(5) If a subscription was made to the account mentioned in paragraph (1)(a) before 13th September in the year 2007-08 and the earlier amount exceeds the later amount, the excess does not count towards the subscription limits for the year 2007-08.

(6) The new account manager must—

(a) treat the later amount in the same way as an account transferred from another account manager to the new account manager during the year 2007-08, and

(b) retain either the certificate mentioned in paragraph (3) or a copy of that certificate.

(7) In this regulation—

“Northern Rock” means Northern Rock plc, company registered number 3273685;

the “subscription limits” means the subscription limits in paragraphs (2) and (3)(a) of regulation 4..

Section 4 Amendment of regulation 8

In regulation 8(2) (qualifying investments for a cash component) for sub-paragraph (a) substitute—

(a) cash deposited in a deposit account with—

(i) a building society,

(ii) a credit union,

(iii) a person within subsection (2)(b) of section 991 of the Income Tax Act 2007 (read with subsection (3) of that section), or

(iv) a relevant European institution;

Section 5 Amendment of regulation 23

In regulation 23(2)(a) (interest on cash deposits held under a stocks and shares component) for “lower rate” substitute “basic rate”.

Section 6 Amendment of regulation 36

(1) Amend regulation 36 (application of certain provisions where investor ceases to be entitled to relief from tax) as follows.

(2) In paragraph (6)—

(a) omit paragraphs (i) and (iii) of sub-paragraph (b),

(b) omit sub-paragraph (e)(i),

(c) omit sub-paragraph (f)(ii),

(d) omit sub-paragraph (g),

(e) in sub-paragraph (h)—

(i) at the end of paragraph (ii) insert the word “and”, and

(ii) omit paragraphs (iii) and (iv), and

(f) omit sub-paragraph (i) and the word “and” immediately preceding it.

(3) In paragraph (8) for “lower rate” substitute “basic rate”.

(4) In paragraph (9)(a) for “lower rate” substitute “basic rate”.