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This publication is available at https://www.gov.uk/government/publications/isa-manager-bulletin-65/isa-manager-bulletin-65
This bulletin contains articles on subscription limits, permitted subscriptions for the spouse/civil partner of a deceased Individual Savings Account (ISA) investor and Child Trust Fund (CTF) to Junior ISA transfers.
If you have any queries on this bulletin, you should email: email@example.com
27 March 2015
2. ISA subscriptions limit
The subscription limit for 2015 to 2016 will be £15,240 for ISA and £4,080 for Junior ISA.
The Individual Savings Account (Amendment) Regulations 2015 are available.
3. Additional permitted subscriptions for the spouse/civil partner of a deceased ISA investor
ISA manager bulletin 64 included draft regulations and guidance about the announcement made by the Chancellor in his Autumn Statement. HM Revenue and Customs (HMRC) would like to record our thanks to those who commented. The final versions come into effect from 6 April 2015. The guidance, which will be included in the Guidance Notes for Managers, is attached to this bulletin and the Individual Savings Account (Amendment No.2) Regulations 2015 are available.
4. Transfers of savings from a CTF to a Junior ISA
ISA manager bulletin 62 included draft regulations permitting the transfer of savings from Child Trust Fund to Junior ISA. HMRC would like to record our thanks to those who commented. A final version of the guidance, which comes into effect from 6 April 2015, is attached to this bulletin and the Individual Savings Account (Amendment No.3) Regulations 2015 are available.
5. ISAs and CTFs: extending eligibility
From 1 July 2015, the list of qualifying investments for stocks and shares ISAs and CTFs will include securities listed on a recognised stock exchange that are issued by co-operative Societies and Community Benefit Societies (Industrial and Provident Societies in Northern Ireland).
Budget 2015 included an announcement that, from the 1 July 2015, there will be an extension to the type of securities issued by companies which can qualify for ISA.
These securities will be eligible for ISA where the:
- shares in the company issuing the securities are admitted to trading on a recognised stock exchange
- company issuing the securities is a 75% subsidiary of a company whose shares are admitted to trading on a recognised stock exchange
- securities themselves are admitted to trading on a recognised stock exchange
ISA and CTF provider guidance will be updated ahead of the change.
6. Making ISAs more flexible
ISA savers will be able to withdraw and replace money from their cash ISA during an ISA year, without the replacement of funds counting towards their annual ISA subscription limit for that year. This will apply to both current and previous years ISA holdings.
This change will become law in autumn 2015, following discussions with ISA managers and other groups on any implementation issues.
As previously, any funds withdrawn from the ISA wrapper, will be subject to tax in the normal way while outside the wrapper.
This change will not apply to Junior ISAs, which are locked in accounts. The account holder cannot make withdrawals until they reach 18. The announcement limits the change to cash ISAs.
7. Help to Buy: ISA
From autumn 2015, savers can receive a bonus payment from the government towards their deposit for a first home if they satisfy certain conditions and have saved in a Help to Buy: ISA.
While the design of the Help to Buy: ISA will be the subject of further discussion with the savings and investment industry and other interested groups, it is intended that the Help to Buy: ISA will be subject to the usual ISA rules. The only difference will be that additional requirements must be satisfied if the account holder is to qualify for the government bonus payment.
Subscriptions made to a Help to Buy: ISA will count against a saver’s annual subscription limit for the relevant year. Savers will not be able to pay into a Help to Buy: ISA and another cash ISA in the same tax year.
Where an ISA manager’s systems offer a number of products within a single ISA wrapper/account, HMRC do not expect the Help to Buy: ISA rules to prevent a customer using the rest of their annual ISA allowance in other cash ISA products available within the same cash ISA wrapper.
Nor do HMRC expect the rules to prevent a first time buyer subscribing to an ISA before the scheme begins and transferring those savings to a Help to Buy: ISA. But the saver would only be able to transfer the maximum initial deposit of £1,000 plus a monthly deposit of £200 into their Help to Buy: ISA. The normal ISA rules as regards transfers would apply. Current year transfers must be made in full, whereas previous year transfers may be made in part.