The Individual Savings Account Regulations 1998

[F1Transfers relating accounts other than junior ISA accounts]U.K.

21.—[F2(1) [F3In this regulation, in relation to a transfer of an account that is not a junior ISA account]—

“the current year’s subscriptions” means—

“the previous years’ subscriptions” means—

[F6“subscriptions” includes all payments made into a Lifetime ISA.]

[F2(2)  Any transfer relating to an account or part of an account shall be made—

(a)directly between one account manager (“the transferor”) and another account manager (“the transferee”), or

(b)where the same person is account manager before and after the transfer, solely by that manager (who shall maintain the records of both transferor and transferee required by this regulation).]

[F2(3)  The current year’s subscriptions may only be transferred as a whole (with or without the whole or part of any previous years’ subscriptions).]

[F2(4) F7... [F8The] current year’s subscriptions and the previous years’ subscriptions may only be transferred to—

(a)a stocks and shares account (if the account investor is 18 years of age or over), F9...

(b)a cash account, F10...

[F11(c)an innovative finance account (if the account investor is 18 years of age or over),][F12, or

(d)a Lifetime ISA (if the account investor is 18 or over),]

belonging to the same account investor.

F13(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4B) [F14Where the current year’s subscriptions (with or without other subscriptions) are transferred under paragraph (4), the subscriptions in sub-paragraphs (a) and (b) in the definition of “the current year’s subscriptions” in paragraph (1) shall be treated, for all purposesF15... , as if they had been made to the account held with the transferee.]

(4C) Where the current year’s subscriptions (with or without other subscriptions) are transferred from—

(a)a cash account to a cash account, F16...

(b)a stocks and shares account to a stocks and shares account, F17...

[F18(c)an innovative finance account to an innovative finance account,] [F19or

(d)a Lifetime ISA to a Lifetime ISA,]

the subscriptions transferred, and no other subscriptions, shall be treated as the same account, for the purpose of making any remaining permitted subscriptions [F20or qualifying additions] in that year.

[F21(4CA) [F22Regulations 12(1) and 12B(1) do] not prevent the current year’s subscriptions and the previous years’ subscriptions being transferred to an account that was held immediately before the transfer but to which no subscription has been made in the year in which the transfer occurs or the year immediately before that year.]

(4D) The account investor shall[F23, subject to paragraph (4DA),] make a fresh application under regulation [F2412 or 12B, as the case may be,] (with any necessary modifications to reflect that it is made on a transfer) to the transferee.

[F25(4DA) Paragraph (4D) does not apply where—

(a)an account is transferred in a bulk transfer of accounts;

(b)a cash account (whether or not in a bulk transfer of accounts) is transferred to a cash account held with the transferee immediately before the time when the transfer is made;

(c)a stocks and shares account (whether or not in a bulk transfer of accounts) is transferred to a stocks and shares account held with the transferee immediately before the time when the transfer is made; F26...

[F27(ca)an innovative finance account (whether or not in a bulk transfer of accounts) is transferred to an innovative finance account held with the transferee immediately before the time when the transfer is made;]

[F28(cb)a Lifetime ISA (whether or not in a bulk transfer of accounts) is transferred to a Lifetime ISA held with the transferee immediately before the time when the transfer is made;]

(d)a cash account is transferred (otherwise than in a bulk transfer of accounts) to [F29a Lifetime ISA,] a stocks and shares account [F30or an innovative finance account] held with the transferee immediately before the time when the transfer is made[F31,] F32...

[F33(e)a stocks and shares account is transferred (otherwise than in a bulk transfer of accounts) to [F34a Lifetime ISA,] a cash account [F35or an innovative finance account] held with the transferee immediately before the time when the transfer is made] F36...[F37; or

(f)an innovative finance account is transferred (otherwise than in a bulk transfer of accounts) to [F38a Lifetime ISA,] a cash account or a stocks and shares account held with the transferee immediately before the time when the transfer is made.]

(4DB) Where an account is transferred in a bulk transfer of accounts that is not also a transfer described in paragraph [F39(4DA)(b), (c), or (ca)], a subscription to the account after the transfer may only be made if—

(a)the subscription is made after the account investor has, during the period of time determined in accordance with paragraph (4DC), made an application to the transferee in relation to the account in accordance with regulation 12 (with any necessary modifications where appropriate to reflect that the account has been transferred in a bulk transfer of accounts);

(b)the subscription is made in the year immediately following a year in which a subscription has been made to the account other than a subscription permitted by virtue of paragraph (4DE); or

(c)the subscription is permitted by virtue of paragraph (4DE).

[F40This paragraph does not apply to a Lifetime ISA.]

(4DC) The period of time referred to in paragraph (4DB)(a) is the period—

(a)starting at the beginning of the year immediately preceding the year in which the subscription is made, and

(b)ending immediately before the subscription is made.

[F41(4DCA) In the case of a Lifetime ISA, where the account is transferred in a bulk transfer of accounts which is not a transfer described in paragraph (4DA)(cb) a payment by the account investor to the account after the transfer may only be made (unless permitted by paragraph (4DE)) after the account investor has made an application to the transferee in relation to the account in accordance with regulation 12B (with any necessary modifications where appropriate to reflect the fact that the account has been transferred in a bulk transfer of accounts).]

(4DD) For the purposes of paragraphs (4DB) and (4DE), the current year’s subscriptions and the previous years’ subscriptions transferred are not subscriptions to the account.

(4DE) A subscription to an account is permitted by this paragraph if—

(a)the account has been transferred to the transferee [F42in a bulk transfer of accounts pursuant to a scheme described in regulation 2(1A)(a)(ii) or] in a group transfer of accounts;

(b)the most recent application in accordance with regulation 12 [F43or 12B] relating to the transferred account made before its transfer is available to the transferee; and

(c)[F44except in relation to a Lifetime ISA,] the subscription is made—

(i)in the year in which the account is transferred (provided a subscription has been made to the account in that year before the account was transferred); or

(ii)in a year immediately following a year in which a subscription has been made to the transferred account (including a subscription made before the transfer).

(4DF) For the purposes of paragraph (4DE)(b), an application in accordance with regulation 12 [F45or 12B] as described in that paragraph is available to a transferee if—

(a)paragraph (4DG) or (4DH) applies; and

(b)[F46except in relation to a Lifetime ISA,] the transferor has advised the transferee whether a subscription has been made to the transferred account in the year immediately preceding the year in which the transfer takes place.

(4DG) This paragraph applies where the application described in paragraph (4DE)(b) (or a copy of it) is held by the transferee.

(4DH) This paragraph applies where—

(a)the application described in paragraph (4DE)(b) (or a copy of it) is held by the transferor; and

(b)the transferee can require the transferor to make it available to the transferee for any purpose necessary to ensure the transferee’s compliance with these regulations.

(4DI) An account transferred in accordance with this regulation in a bulk transfer of accounts is an account opened in accordance with regulation 12 [F47or 12B] for the purposes of these Regulations whether or not an application in accordance with regulation 12 [F47or 12B] as described in paragraph (4DB)(a) [F48or (4DCA), as the case requires,] is made. ]

(4E) This regulation shall also apply where an account is transferred in consequence of an account manager (“the transferor”) ceasing to act or to qualify as an account manager.]

[F49(5) Where an account is transferred, the transferor must, subject to paragraph (5B), give to the transferee a notice containing the information specified in paragraph (6) before the relevant time specified in paragraph (5A).

(5A) The relevant time specified in this paragraph is—

(a)in the case of an account transferred in a bulk transfer of accounts, the time of the transfer;

(b)in any other case, the expiry of 30 days after the day of the transfer.

(5B) Paragraph (5) does not apply where a transferor provides information to a transferee in accordance with regulation 21A(2)(b)(ii).]

(6) The information specified in this paragraph is—

(a)as regards the account investor—

(i)his full name,

(ii)the address of his permanent residence, including postcode,

(iii)his date of birth, and

(iv)if he has one, his national insurance number, and

(b)as regards an account [F50or any part of an account] transferred pursuant to paragraph (2)—

(i)whether the account is a [F51cash account[F52, stocks and shares account[F53, an innovative finance account or a Lifetime ISA]],]

[F54(ia)whether the account is a continuing account of a deceased investor;]

(ii)the date of the transfer,

(iii)the total amount of cash subscribed to the account during the period from the beginning of the year in which the transfer takes place to the date of the transferF55... [F56, disregarding a subscription made in accordance with regulation 5D (except for a replacement subscription), less, in the case of a flexible account, the amount of any cash withdrawn from it during that period and if the result is in the negative, the amount to be reported is nil],

[F57(iv)the date on which the first subscription (if any) was made to the account, in the year in which the transfer takes place,] [F58and]

(v)the amount of any dividends on account investments which are payable to, but have not been received by, the transferor at the date of the transfer[F59.]

F60(vi). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F61(ba)where the transfer is as described in regulation 10A(4)(c), that the amount being transferred is in respect of a Help to Buy ISA and is as described in that regulation (and in this case paragraph (6)(b)(i) and (iii) to (v) is not to apply).]

F62(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[F63and

(d)as regards an account or any part of an account transferred pursuant to paragraph (2) which is a Lifetime ISA—

(i)the date on which that Lifetime ISA was first opened and for the purposes of a payment made in accordance with regulation 5D(2)(a)(ia) or (ib), a Lifetime ISA opened for the purpose of receiving the payment is to be treated as being the same Lifetime ISA from which the money the subject of the payment originated;

(ii)the date of the first qualifying addition to the account in the year of transfer;

(iii)the amount of any government bonus that has accrued, but not been claimed, at the date of the transfer,

(iv)the number allocated to the account by the transferor;

(v)any government bonus already paid within the current year;

(vi)the total amount of qualifying additions to the Lifetime ISA during the period from the beginning of the year in which the transfer takes place to the date of transfer, with separate entries for a Help to Buy transfer under regulation 10A(4)(c) and any other qualifying additions;

(vii)details of qualifying additions to the Lifetime ISA for which a claim has not been made with separate entries for a Help to Buy transfer under regulation 10A(4)(c) and any other qualifying additions;

(viii)confirmation of whether or not there has been a withdrawal for a first-time residential purchase, for which information required under paragraph 9 of the Schedule and expected by the transferor has not been received;

(ix)if there has been such a withdrawal, an undertaking to pass on to the transferee any such information received without delay. ]

[F64(6A) Where a Lifetime ISA is transferred, the transferee must before the time of the transfer give to the transferor a notice stating whether or not the account to which the investments are being transferred is a Lifetime ISA.

(6B) A Lifetime ISA of an account investor to which another Lifetime ISA of the account investor (“the original”) is transferred in accordance with this regulation is a successor to the original.]

F65(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .