ISA manager bulletin 79
Published 31 January 2020
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Amendment to the ISA regulations
Statutory Instrument 2020 No. 30 was laid before parliament on 15 January 2020 and comes into force on 6 April 2020.
These regulations amend the ISA Regulations to provide for when a transfer is made of investments held in a Child Trust Fund (CTF) which has matured on the CTF account holders 18th. birthday.
ISA managers’ guidance
Following the amendment to the ISA regulations, several sections of the ISA managers’ guidance have been amended;
When can an ISA be opened?
The guidance is amended to confirm that an ISA can be opened with funds transferred from a matured CTF including when no instructions have been given the holder of a matured CTF account.
Information you need from investors when they apply for an ISA
The guidance is amended and explains that an individual under the age of 18 can apply for a Stocks & Shares, Innovative Finance, or Lifetime ISA but can only make their first subscription or transfer funds from a matured CTF account on or after their 18th. birthday.
Subscriptions that do not count towards the annual (ISA) subscription limits
A new prominent section of guidance has been added under the heading, ‘Funds transferred from a matured CTF account’.
Who can open a Lifetime ISA (LISA)?
The guidance includes amendments that explain that a Lifetime ISA can be opened with funds transferred from a matured CTF account, subject to the £4,000 annual LISA subscription limit. Also, confirmation that a LISA can be opened by an investor who is not resident in the UK and is transferring funds from their matured CTF account.
Find out about returns of information for ISA managers
New guidance on reporting details of ISAs opened with investments from a matured CTF account when the account holder becomes 18 and has not given instructions to their CTF provider who is also an ISA manager.
Stocks & Shares investments for ISA managers
Updated definition of ‘Recognised Undertakings for the Collective Investment in Transferable Securities (UCITS)’ (collective investment schemes).