This technical consultation will be of interest to investors in debt securities (such as bonds) offered via a crowdfunding platform and the businesses and charities that issue or arrange these investments.
It is intended that these regulations, which are being published in draft for consultation, will amend the ISA Regulations (S.I.1998/1870) from 1 November 2016 to provide that certain debentures issued by companies and charities and offered via an electronic system (including those offered via a crowdfunding platform) can be held in an innovative finance ISA where they satisfy certain conditions.
When held in this account, income and gains from these investments will be tax-advantaged for the investor.
HM Revenue and Customs has published draft regulations together with a draft explanatory memorandum for a period of technical consultation, which will close on 5 September 2016.
A Tax Information and Impact Note has also been published.
This measure was first announced at Autumn Statement 2014.
Any comments on these draft regulations should be sent by email to: firstname.lastname@example.org