2000 No. 3112

INCOME TAX

The Individual Savings Account (Amendment No. 3) Regulations 2000

Made

Laid before the House of Commons

Coming into force

The Treasury, in exercise of the powers conferred on them by section 333 of the Income and Corporation Taxes Act 19881, section 151 of the Taxation of Chargeable Gains Act 19922 and section 75 of the Finance Act 1998, hereby make the following Regulations:

1

These Regulations may be cited as the Individual Savings Account (Amendment No. 3) Regulations 2000 and shall come into force on 13th December 2000.

2

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

3

In regulation 2(1)(b) after the definition of “authorised unit trust” there shall be inserted the following definition—

  • “depositary interest” means the rights of the person mentioned in paragraph (b), under a certificate or other record (whether or not in the form of a document) acknowledging—

    1. a

      that a person holds relevant investments or evidence of the right to them, and

    2. b

      that another person is entitled to rights in or in relation to those or identical relevant investments, including the right to receive such investments, or evidence of the right to them or the proceeds from such investments, from the person mentioned in paragraph (a),

  • where “relevant investments” means investments which are exclusively qualifying investments for a stocks and shares component falling within any of regulation 7(2)(a) to (h), and the rights mentioned in paragraph (b) are exclusively rights in or in relation to relevant investments;

4

In regulation 74—

a

in paragraph (2) after sub-paragraph (h) there shall be inserted the following sub-paragraph—

ha

a depositary interest;

b

at the end there shall be added the following paragraph—

13

The references to “shares” in paragraphs (2)(h) and (10) shall include references to a depositary interest where the relevant investments in question (referred to in paragraphs (a) and (b) of the definition of “depositary interest”) are shares falling within both paragraphs (2)(h) and (10).

5

In regulation 31(4)(a) there shall be added at the end the words “with depositary interests being included in the paragraph to which their relevant investments (referred to in paragraphs (a) and (b) of the definition of “depositary interest”) relate”.

Greg PopeJim DowdTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Regulations)

These Regulations, which came into force on 13th December 2000, amend the Individual Savings Account Regulations 1998 (S.I.1998/1870, amended by S.I.1998/3174, 2000/809, 2079). The principal effect of the amendments is to add, to the investments which are qualifying investments for a stocks and shares component, depositary interests which represent existing qualifying investments (other than cash).