The Individual Savings Account (Amendment No. 2) Regulations 2011

Amendments to the Individual Savings Account Regulations 1998

27.  In regulation 22 (exemption from tax of account income and gains)—

(a) for paragraph (1)(a)(ia) substitute—

“(ia) in respect of alternative finance return paid by a financial institution in accordance with Part 10A of ITA 2007(1), or”;

(b) in paragraph (1)(a)(ib) for “regulation 4(2) to (3)” substitute “regulations 4ZA(1) and (2) and 4ZB(1)”;

(c) for paragraph (1)(a)(iii) substitute—

“(iii) on an offshore income gain to which a disposal by any of them of an account investment would otherwise give rise to a charge to tax under regulation 17 of the Offshore Funds (Tax) Regulations 2009(2), or”;

(d) omit “and” immediately preceding paragraph (1)(e);

(e) in paragraph (1)(e), at the beginning, insert the words “in relation to an account that is not a junior ISA account,”;

(f) immediately before the end of paragraph (1) insert—

“;

(f) in relation to a junior ISA account, income arising from account investments shall not be regarded as income for any income tax purposes (including section 629 of ITTOIA 2005(3))”;

(g) in paragraph (2), for “subscribing to” substitute “the opening of”;

(h) after paragraph (2) add—

“(3) A reference to “interest” in this regulation includes a reference to any bonus and to a dividend paid or credited in respect of a share account with a building society.”.

(1)

2007 c. 3; Part 10A was inserted by paragraphs 1 and 2 of Part 1 of Schedule 2 to the Taxation (International and Other Provisions) Act 2010 (c. 8).

(2)

S.I. 2009/3001, to which there are amendments not relevant to these Regulations.

(3)

2005 c. 5; the heading to section 629 was substituted by, and subsections (1) and (7)(b), (c) and (d) of that section were amended by S.I. 2005/3229 and subsection (8) was inserted by paragraph 34(1) of Schedule 13 to the Finance Act 2006 (c. 25).