Citation and commencementU.K.

1.  These Regulations may be cited as the Individual Savings Account Regulations 1998 and shall come into force for the purposes of—

(a)applications under regulations 12 and 13 relating to the year 1999—00, to subscribe to an account in that year,

(b)applications under regulation 14 to be approved as an account manager to manage accounts in the year 1999—00 and subsequent years, and

(c)regulations 16 to 18 and 20, so far as they relate to applications referred to in paragraph (b),

on 1st October 1998, and for all other purposes on 6th April 1999.

InterpretationU.K.

2.—(1) In these Regulations unless the context otherwise requires—

(a)“account", except in the case of—

(i)an account with a deposit-taker, or

F1(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)a share or deposit account with a building society, or

(iv)a deposit account with [F2a person falling within section 840A(1)(b) of the Taxes Act], or a relevant European institution,

shall be construed in accordance with [F3regulation 4(1) and, where appropriate, regulation 2B(b)] [F4and shall include a personal equity plan treated on and from the 6^th April 2008 as a stocks and shares account];

• an “account investment" is an investment under the account which is a qualifying investment for a stocks and shares component [F5or a cash component, as the case may be, within the meaning of regulation 7 or 8];

• [F6an “account investor” has the meaning given in regulation 2A;]

• an “account manager" is a person who fulfils the conditions of these Regulations and is approved by the Board for the purposes of these Regulations as an account manager;

• [F7“approved SAYE option scheme” shall be construed in accordance with the SAYE code (see section 516(3) of ITEPA 2003);

• “approved SIP” shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);]

• “approved profit sharing scheme" has the same meaning as in Chapter IV of Part V of the Taxes Act;

• an “assurance undertaking" means an assurance undertaking within the meaning of [F8Article 6 of Directive 2002/83/EC of the European Parliament and of the Council of 5th November 2002 concerning life assurance];

• [F9“the Board” means the Commissioners for Her Majesty’s Revenue and Customs;]

• “building society" means a building society within the meaning of the Building Societies Act 1986 M3, or the Irish Building Societies Act 1989 M4;

• [F10“building society bonus”, except in regulation 22(1)(a)(i), excludes any bonus, distribution of funds or the conferring of rights in relation to shares—

  (a)

  in connection with an amalgamation, transfer of engagements or transfer of business of a building society, and

  (b)

  mentioned in section 96 or 100 of the Building Societies Act 1986,

  and “payment under a building society bonus scheme” shall be construed accordingly;.]

• [F11“business day” means any day except—

  (a)

  a Saturday, Sunday, Good Friday or Christmas Day;

  (b)

  a bank holiday under the Banking and Financial Dealings Act 1971;]

• [F12“ceasing to be subject to the plan”, in relation to plan shares under an approved SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);]

• [F13“child” means an individual under 18;]

• [F14“child trust fund” has the meaning given by section 1 of the Child Trust Funds Act 2004;]

• “company", except in regulation 7(4), means any body corporate having a share capital other than—

  (i)

  an open-ended investment company, within the meaning given by section [F15236 of the Financial Services and Markets Act 2000],

  (ii)

  [F16a UK UCITS, recognised UCITS or non-UCITS retail scheme,]

  (iii)

  an industrial and provident society, or

  (iv)

  a body corporate which is a [F1751%] subsidiary of any industrial and provident society;

• [F18“credit union” means a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985;]

• [F19“CTA 2010” means the Corporation Tax Act 2010;]

• “deposit-taker" has the meaning given by [F20section 853 of ITA 2007];

• [F21“the Director of Savings” has the same meaning as in the National Debt Act 1972]

• [F22“dormant account” means a cash account which is a “relevant dormant account” within the meaning given in section 39(2) of the Finance Act 2008, omitting the words—

  (a)

  “is to be, or”; and

  (b)

  “will apply, or” (in both places they appear);]

• “EEA Agreement" means the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 M5, as adjusted by the Protocol signed at Brussels on 17th March 1993[F23, as modified or supplemented from time to time] M6;

• “EEA State" means a State, other than the United Kingdom, which is a Contracting Party to the EEA Agreement;

• [F24“eligible child” means a child—

  (a)

  born—

  (i)

  on or after 3rd January 2011; or

  (ii)

  before the time mentioned in paragraph (i) but who is not an “eligible child” within the meaning given in the Child Trust Funds Act 2004; and

  (b)

  who, at the time when the application to open an account pursuant to a junior ISA application described in regulation 12A is made, is—

  (i)

  resident and ordinarily resident in the United Kingdom;

  (ii)

  a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003;

  (iii)

  married to, or in a civil partnership with, a person mentioned in paragraph (ii); or

  (iv)

  a dependant of a person mentioned in paragraph (ii);]

• [F25“European institution” means an EEA firm of the kind mentioned in paragraph 5(a), (b) or (c) of Schedule 3 to the Financial Services and Markets Act 2000 which is an authorised person for the purposes of that Act as a result of qualifying for authorisation under paragraph 12 of that Schedule;]

• [F26“51% subsidiary” and “75% subsidiary” have the same meanings as they do in section 1154 of CTA 2010;]

• “gains", except in regulations 22(1)(a)(ii) to (v) and 35(6), means “chargeable gains"within the meaning of the Taxation of Chargeable Gains Act 1992;

• “gilt-edged securities" has the meaning given by [F27paragraphs 1 and 1A] of Schedule 9 to the Taxation of Chargeable Gains Act 1992;

• F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• an “incorporated friendly society" means a society incorporated under the Friendly Societies Act 1992 M7;

• an “industrial and provident society" means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 M8 or under the Industrial and Provident Societies (Northern Ireland) Act 1969 M9;

• “investment trust" has the meaning given by section 842 of the Taxes Act M10F29...;

• [F30“ITA 2007” means the Income Tax Act 2007;

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;]

• [F31“junior ISA account” has the meaning given in regulation 2B;]

• F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the Management Act" means the Taxes Management Act 1970 M11;

• “market value" shall be construed in accordance with section 272 of the Taxation of Chargeable Gains Act 1992;

• [F33“named child” means a child who holds an account opened pursuant to a junior ISA application described in regulation 12A;]

• “notice", except in [F34regulations 9 and 36], means notice in writing and “notify" shall be construed accordingly;

• [F35“parental responsibility” means—

  (a)

  parental responsibility within the meaning of the Children Act 1989 or the Children (Northern Ireland) Order 1995, or

  (b)

  parental responsibilities within the meaning of the Children (Scotland) Act 1995;]

• [F36“participant”, in relation to an approved SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003);

• “plan shares”, in relation to an approved SIP, shall be construed in accordance with the SIP code (see section 488(3) of ITEPA 2003) except that—

  (a)

  paragraph 87(6) of Schedule 2 to ITEPA 2003 (meaning of the word “shares” in the context of company reconstructions) shall not apply, and

  (b)

  in paragraph 88(2) of that Schedule (treatment of shares acquired under rights issue) the words “or securities or rights” shall be treated as omitted;]

• “qualifying distribution" has the same meaning as in [F37section 1136 of the Corporation Tax Act 2010];

• “recognised stock exchange" has the same meaning as in [F38section 1005 of ITA 2007] ;

• a “registered friendly society" has the meaning given by the Friendly Societies Act 1992 M12, and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society;

• “release date" has the meaning given by section 187(2) of the Taxes Act M13;

• “relevant authorised person" has the same meaning as in [F39section 697(2)(b) of ITTOIA 2005];

• “relevant European institution" has the meaning given by [F40section 697(2)(a) of ITTOIA 2005];

• [F41“responsible person” means a person who is the responsible person in respect of the management of a junior ISA account in accordance with regulation 2C(4);]

• F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “security", except in regulations [F437(2)(c) to] [F44(cc) and (8)(b), 8(2)(f)] and 34(3), means any loan stock or similar security of a company whether secured or unsecured[F45, and in regulation 7(2)(cc) has the same meaning but with the omission of the words “of a company”];

• [F46“the Stakeholder Products Regulations” means the Financial Services and Markets Act 2000 (Stakeholder Products) Regulations 2004;]

• “tax" where neither income tax nor capital gains tax is specified means either of those taxes;

• “tax credit" means a tax credit under section 231 of the Taxes Act M14;

• “the Taxes Act" means the Income and Corporation Taxes Act 1988;

• F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “year" means a year of assessment, and “the year 1999—00" means the year of assessment beginning on 6th April 1999;

(b)

• [F48“authorised fund” means—

  (i)

  an authorised unit trust, or

  (ii)

  an open-ended investment companyF49...;]

• “authorised unit trust" means a unit trust scheme in the case of which an authorisation order made by the Financial Services Authority under section [F50243 of the Financial Services and Markets Act 2000] is in force;

• F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F52“collective investment scheme” has the meaning in section 235 of FISMA 2000;]

• [F53“the Collective Investment Schemes Sourcebook” means the sourcebook of that name made by the Financial Services Authority under the Financial Services and Markets Act 2000;]

• [F54“depositary interest” means the rights of the person mentioned in paragraph (b), under a certificate or other record (whether or not in the form of a document) acknowledging—

  (a)

  that a person holds relevant investments or evidence of the right to them, and

  (b)

  that another person is entitled to rights in or in relation to those or identical relevant investments, including the right to receive such investments, or evidence of the right to them or the proceeds from such investments, from the person mentioned in paragraph (a),

• where “relevant investments” means investments which are exclusively qualifying investments for a stocks and shares component falling within any of regulation 7(2)(a) to (h), and the rights mentioned in paragraph (b) are exclusively rights in or in relation to relevant investments;]

• F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F52“FISMA 2000” means the Financial Services and Markets Act 2000;]

• F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F56“insolvency event” means the procedures listed in the definition of “insolvency event” in regulation 19(15) of the Payment Services Regulations 2009;]

• F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F57“non-UCITS retail scheme”—

  (a)

  has the meaning in the F58... Collective Investment Schemes Sourcebook (that is, a scheme to which, or to whose authorised fund manager and depositary, [F59COLL 5.1, 5.4 and 5.6] apply),

  (b)

  includes a “recognised scheme” by virtue of section 270 or 272 of the Financial Services and Markets Act 2000, which would fall within paragraph (a) of this definition if it were an authorised fund, and

  (c)

  includes a sub-fund of an umbrella which the terms of the scheme identify as a sub-fund which would fall within paragraph (a) or (b) of this definition if it were itself an authorised fund or a recognised scheme.

  In this definition, expressions defined in the Glossary forming part of the Financial Services Authority Handbook have those defined meanings;]

• [F60“open-ended investment company” means a company incorporated in the United Kingdom to which section 236 of the Financial Services and Markets Act 2000 applies;]

• [F57“qualifying units in or shares of a non-UCITS retail scheme” means that—

  (a)

  the instrument constituting the scheme secures that redemption of the units or shares in question shall take place no less frequently than bi-monthly (see Rule 6.2.16(6) of the F61... Collective Investment Schemes Sourcebook omitting the words “Except where (7) applies, and”, read with Rule 6.3.4(1), whether or not those Rules apply to the scheme), and

  (b)

  a provision for suspension of dealings in exceptional conditions in accordance with Rule 7.2 of that Sourcebook (or any foreign procedure which is a direct foreign equivalent of that Rule) shall not be treated as a provision contrary to paragraph (a) of this definition;]

• [F62“recognised UCITS” means—

  (a)

  a collective investment scheme constituted in an EEA State, which is a “recognised scheme” under section 264 of FISMA 2000, and complies with the requirements to be a “UCITS scheme” for the purposes of the Collective Investment Schemes Sourcebook (see in particular COLL 1.2.2); or

  (b)

  a part of a recognised UCITS mentioned in paragraph (a) of this definition, which would be a sub-fund of an umbrella scheme which is a recognised UCITS;]

• F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F52“UK UCITS” means—

  (a)

  a collective investment scheme authorised under section 31(1)(a) of FISMA 2000, which complies with the requirements to be a “UCITS scheme” for the purposes of the Collective Investment Schemes Sourcebook (see in particular COLL 1.2.2); or

  (b)

  a part of a UK UCITS mentioned in paragraph (a) of this definition which would be a sub-fund of an umbrella scheme which is a UK UCITS;]

• [F64“umbrella scheme” means an authorised fund which according to the terms of the scheme is an umbrella scheme belonging to the category under that name established by the Financial Services Authority, and

  (i)

  in the case of an authorised fund which is an authorised unit trust, references to a part of an umbrella scheme shall be construed in accordance with subsection (8) of section 468 of the Taxes Act, [F65and sub-paragraphs (6) and (7) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations, and]

  (ii)

  in the case of an authorised fund which is an open-ended investment company, references to a part of an umbrella scheme shall be construed in accordance with [F66subsection (4) of section 468A of the Taxes Act, and sub-paragraphs (2) and (3) of regulation 7 of the Authorised Investment Funds (Tax) Regulations 2006 shall apply for the purposes of these Regulations as they apply for the purposes of those Regulations;]]

• [F67“unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme;]

• [F67“unit trust scheme” has the meaning given by section 237 of the Financial Services and Markets Act 2000;]

• “units", in relation to an authorised unit trust, means the rights or interests (however described) of the unit holders in that authorised unit trust and, in relation to a part of an umbrella scheme, means the rights or interests for the time being of the unit holders in that part;

• “units in, or shares of, a F68... [F69UK UCITS or recognised] UCITS" means the rights or interests (however described) of the holders of the units or shares in that F68... [F69UK UCITS or recognised] UCITS;

• F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F71(1A) In these Regulations—

(a)a “bulk transfer of accounts” occurs where two or more accounts are transferred by an account manager (“the transferor”) to another account manager (“the transferee”)—

(i)pursuant to an agreement made between the transferor and transferee, and

(ii)the transfers are not made pursuant to requests made by persons who are the account investor or registered contact in relation to the accounts transferred;

(b)a “group transfer of accounts” occurs where a bulk transfer of accounts is made between account managers that are members of the same group of companies when the transfer occurs;

(c)two companies are members of the same group of companies if—

(i)one is a 75% subsidiary of the other, or

(ii)both are 75% subsidiaries of a third company.]

(2) The Table below indexes other definitions in these Regulations:

[F80Meaning of account investorU.K.

2A.—(1) This regulation makes provision for the meaning of “account investor” in these Regulations.

(2) In relation to an account that is not a junior ISA account, “account investor” means an individual who subscribes to an account and who is a qualifying individual within the meaning of regulation 10.

(3) In relation to a junior ISA account, “account investor” has different meanings in relation to the application of the regulations specified in paragraphs (4) and (5) as provided for in those paragraphs.

(4) For the purposes of the application of regulations 5C, 6(3), 7, 8, 9 (other than regulation 9(3)(b)(iii) and (6)), 21A(1) (other than its first occurrence therein), 21A(2) and (3), 22, 24, 28, 31, 34, 35 (other than regulation 35(10)) and 36, “account investor” means the named child in relation to the account in question.

(5) For the purposes of the application of regulations 4, 9(6), 15, 17, 19, 20, 21A(7), 35(10) and its first occurrence in regulation 21A(1), “account investor” means the registered contact in relation to the account in question.

Meaning of junior ISA accountU.K.

2B.  In these Regulations—

(a)an account opened pursuant to a junior ISA application described in regulation 12A is a junior ISA account at any time when it is held by a child;

(b)references to “account” shall be construed as including a reference to an account that is a junior ISA account except where the context otherwise requires; and

(c)references to an account held by a child are references to an account in respect of which the child is the beneficial owner of the account investments under that account.

Meaning of “registered contact” etc.U.K.

2C.—(1) In these Regulations “registered contact” means the person who may give instructions in respect of the management of a junior ISA account to the person who is the account manager in relation to that account.

(2) The person who may give instructions in respect of the management of a junior ISA account to the account manager of that account is—

(a)the named child who holds the account if the application to open the account in accordance with regulation 12A was made by that child,

(b)the named child who holds the account if—

(i)the child has attained the age of 16 years,

(ii)paragraph (3) does not apply in relation to the child, and

(iii)the child has assumed responsibility for the management of the account in accordance with paragraph (6), or

(c)in any other case, the responsible person in relation to the account.

(3) This paragraph applies in relation to a child where the child is suffering mental disorder within the meaning given by—

(a)section 1(2) of the Mental Health Act 1983;

(b)in relation to a child resident in Scotland, section 328 of the Mental Health (Care and Treatment) (Scotland) Act 2003;

(c)in relation to a child resident in Northern Ireland, Article 3 of the Mental Health (Northern Ireland) Order 1986.

(4) A person is the responsible person in relation to a junior ISA account if—

(a)that person—

(i)makes the application to open the account in question in accordance with regulation 12A; or

(ii)assumes responsibility for the management of the account in accordance with paragraph (6); and

(b)that person has parental responsibility in relation to the named child who holds the account at the time when that person—

(i)makes the application described in sub-paragraph (a)(i); or

(ii)assumes responsibility for the management of the account as described in sub-paragraph (a)(ii).

(5) A person ceases to be the person who may give instructions in respect of the management of a junior ISA account to the person who is the account manager in relation to that account when another person assumes responsibility for the management of the account in accordance with paragraph (6).

(6) A person assumes responsibility for the management of a junior ISA account if—

(a)the person makes an application to assume responsibility for the management of the account in accordance with paragraph (7), and

(b)the account manager of the account in question accepts the application.

(7) An application by a person (“the applicant”) to assume responsibility for the management of a junior ISA account must—

(a)be made to the account manager of the account in question;

(b)contain—

(i)the applicant’s full name,

(ii)the applicant’s address (including postcode),

(iii)the named child’s full name and date of birth,

(iv)the named child’s address (including postcode),

(v)the named child’s national insurance number if the child is over 16 and has been issued with a national insurance number, and

(vi)the authorisation specified in paragraph (8);

(c)contain a declaration by the applicant that the applicant—

(i)is 16 years of age or over,

(ii)is the named child who holds the account in question or has parental responsibility in relation to the named child who holds the account in question, and

(iii)is to be the registered contact for the account.

(8) The authorisation specified by this paragraph is authority given by the applicant to the account manager (on behalf of the named child who holds the account where appropriate)—

(a)to hold the subscriptions, account investments, interest, dividends and any other rights or proceeds in respect of those investments and cash;

(b)to make on behalf of the named child any claims to relief from tax in respect of account investments; and

(c)to make a record in writing in accordance with paragraph (11) where that paragraph requires the account manager to do so.

(9) An account manager must not accept an application to assume responsibility for the management of a junior ISA account if—

(a)except in the circumstances specified in paragraph (10), the person who is the registered contact in relation to the account at the time when the application is made does not consent to the applicant assuming responsibility for the management of the account; or

(b)the account manager has reason to believe that the applicant has given untrue information in the application.

(10) The circumstances specified in this paragraph are—

(a)the death of the most recent registered contact,

(b)the incapacity of the registered contact,

(c)where the registered contact cannot be contacted,

(d)the bringing to an end of a Court order under which the registered contact is a responsible person,

(e)where the applicant is the named child who holds the account and is aged 16 or over,

(f)where, under an adoption order, the applicant is the adopter of the named child who holds the account,

(g)where a Court so orders,

(h)where the applicant has been appointed to be a guardian or special guardian of the named child who holds the account.

(11) Where the application to assume responsibility for the management of a junior ISA account is not in writing or the account manager operates a record system under which all original written applications are not retained—

(a)the account manager must, immediately after receiving the application, record, in writing, on behalf of the applicant the declaration required by paragraph (7)(c) and the authorisation required by paragraphs (7)(b)(vi) and (8);

(b)the account manager must notify the applicant of the contents of the written record within 5 business days of making it; and

(c)the written record (as amended by any corrections notified to the account manager by the applicant within 30 days of the notification mentioned in sub-paragraph (b)) shall be treated as the applicant’s declaration required by paragraph (7)(c) and authorisation required by paragraphs (7)(b)(vi) and (8).

Regulations that do not apply to junior ISA accountsU.K.

2D.  Regulations 4(6)(fa), 4ZA, 4A, 4B, 4C, 4D, 5B, 7(2)(h), 10, 11, 12, 21, 23 and 30, do not apply to a junior ISA account.

Contracts entered into by or on behalf of a child who is 16 or overU.K.

2E.  Where, by virtue of the opening of an account pursuant to a junior ISA application described in regulation 12A, a contract is entered into by a child who is—

(a)aged 16 or over; and

(b)the child who—

(i)holds the account, or

(ii)has parental responsibility in relation to the child who holds the account,

the contract has effect as if the child who opened the account had been 18 or over when the contract was entered into.]

IntroductoryU.K.

3.  These Regulations provide for the setting up of plans in the form of an account, by account managers approved by the Board, under which individuals may make certain investments, for the conditions under which they may invest and under which those accounts are to operate, for relief from tax in respect of account investments and generally for the administration of tax in relation to such accounts.

General conditions for accounts and subscriptions to accountsU.K.

4.—[F81(1) An account is a scheme of investment, to which a subscription may be made, and in respect of which—

(a)the conditions and requirements contained in paragraphs (1A) and (5) to (8) are fulfilled; and

(b)either—

(i)the conditions contained in paragraph (1B) are fulfilled, or

(ii)at the time when the subscription to the account is made, the account is a junior ISA account.]

[F82(1A) The conditions in this paragraph are—

(a)the account is set up as a stocks and shares account or a cash account;

(b)a stocks and shares account is made up of a single stocks and shares component only;

(c)a cash account is made up of a single cash component only;

(d)the application to open the account is made in accordance with regulation 12 or 12A.

(1B) The conditions in this paragraph are—

(a)a qualifying individual who is 16 or over may only subscribe to a single cash account that is not a junior ISA account in a particular year;

(b)a qualifying individual who is 18 or over may only subscribe to a single stocks and shares account that is not a junior ISA account in a particular year;

(c)it is an account to which only one qualifying individual subscribes;

(d)subject to regulation 7(2)(h), it is an account to which the qualifying individual subscribes only by payment to the account manager of a sum or sums of the individual’s cash; and

(e)the subscriptions made by the qualifying individual to accounts (ignoring transfers and payments from account managers to the individual) do not in the aggregate in any year exceed the subscription limits in regulation 4ZA(1) and (2).]

F83(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F83(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F84(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) An account must at all times be managed in accordance with these Regulations by an account manager and under terms agreed in a recorded form between the account manager and the account investor.

(6) Apart from other requirements of these Regulations the terms agreed to which paragraph (5) refers shall [F85secure]—

[F86(a)that the account investments shall be in the beneficial ownership of—

(i)in the case of an account that is not a junior ISA account, the account investor; or

(ii)in the case of a junior ISA account, the named child;]

(b)that, except in relation to qualifying investments for a cash component within regulation 8(2)(a), (b) or (e), and subject to regulation 15—

(i)[F87in relation to an account that is not a junior ISA account,] the title to all account investments shall be vested in the account manager or his nominee or jointly in one of them and the account investor,

[F88(ia)in relation to an account that is a junior ISA account, title to all investments shall be vested in the account manager or his nominee or jointly in one of them and either one of the registered contact or named child to the account in question as the account manager considers appropriate,] and

(ii)where a share certificate or other document evidencing title to an account investment is issued, it shall be held by the account manager or as he may direct;

(c)that, in relation to a stocks and shares component, and qualifying investments falling within [F89paragraphs (g), (h), (k), (l) and (m) of regulation 8(2)], the account manager shall, if the account investor so elects, arrange for the account investor to receive a copy of the annual report and accounts issued to investors by every company, unit trust, open-ended investment company or other entity in which he has account investments;

(d)that, in relation to a stocks and shares component, and qualifying investments falling within [F89paragraphs (g), (h), (k), (l) and (m) of regulation 8(2)], the account manager shall be under an obligation (subject to any provisions made under any enactment and if the account investor so elects) to arrange for the account investor to be able—

(i)to attend any meetings of investors in companies, unit trusts, open-ended investment companies and other entities in which he has account investments,

(ii)to vote, and

(iii)to receive, in addition to the documents referred to in sub-paragraph (c), any other information issued to investors in such companies, unit trusts, open-ended investment companies and other entities;

(e)that the account manager shall satisfy himself that any person to whom he delegates any of his functions or responsibilities under the terms agreed with the account investor is competent to carry out those functions or responsibilities;

(f)that [F90on the instructions of the account investor (“the transfer instructions”) and within such time as is stipulated by the account investor in the transfer instructions]—

(i)an account, with all rights and obligations of the parties to it, or

(ii)such parts thereof as may be agreed between the account investor and the account manager,

[F91shall] be transferred to another account manager subject to and in accordance with [F92regulation 21 or 21B] [F93and, where it applies, regulation 21A];

[F94(fa)that on the instructions, subject to regulation 9(3)(b), of the account investor (“the withdrawal instructions”) and within such time as is stipulated by the account investor in the withdrawal instructions, account investments, interest, dividends, rights or other proceeds in respect of such investments or any cash shall be transferred or paid to him;]

(g)that the account manager shall notify the account investor if by reason of any failure to satisfy the provisions of these Regulations an account is or will become no longer exempt from tax by virtue of regulation 22(1).

[F95(7) The time stipulated in the transfer instructions or withdrawal instructions shall be subject to any reasonable business period of the account manager required for the practical implementation of the instructions, but such period—

(a)must not exceed 30 days; and

(b)must be consistent with regulation 21A where it applies.]

[F96(8) Where an account holds units in or shares of a UK UCITS, recognised UCITS or non-UCITS retail scheme, and dealings in the units or shares are suspended in accordance with Rule 7.2 of the Collective Investment Schemes Sourcebook (COLL 7.2), or any direct foreign equivalent of that Rule, the business period in paragraph (7) may be extended to 7 days after the end of such suspension.]

[F97Subscriptions to an account other than a junior ISA accountU.K.

4ZA.—(1) The overall subscription limit for any qualifying individual for any year (that is the aggregate of the qualifying individual’s subscriptions to all accounts that are not junior ISA accounts in that year) is—

(a)where the qualifying individual is 16 or over but less than 18 at the end of the year, [F98£5,640]; and

(b)in all other cases, [F99£11,280], but subject to paragraph (2).

(2) Where the qualifying individual is 18 or over at the end of the year, the qualifying individual may only invest up to 50 per cent of the overall subscription limit specified in paragraph (1)(b) in any year to a cash account.

(3) A qualifying individual may not subscribe to an account that was a junior ISA account while it was held by the qualifying individual as the named child for the account unless the account manager of that account has been provided with—

(a)the qualifying individual’s national insurance information specified by paragraph (4);

(b)a declaration specified by paragraph (5);

(c)the authorisation specified by paragraph (6); and

(d)if the account manager of the account requires, an authorisation specified by paragraph (7).

(4) The national insurance information specified by this paragraph is—

(a)the qualifying individual’s national insurance number; or

(b)a declaration by the qualifying individual that the qualifying individual does not have a national insurance number.

(5) The declaration specified by this paragraph is a declaration by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraph (3)(c) to (f) of that regulation.

(6) The authorisation specified by this paragraph is an authorisation by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraphs (4)(e) and (4A)(c) of that regulation.

(7) The authorisation specified by this paragraph is an authorisation by the qualifying individual that, if the qualifying individual were making an application to open an account pursuant to regulation 12, would be in accordance with paragraphs (4)(e) and (4A)(a) and (b) of that regulation.

(8) Regulation 12(7), (9) and (10) apply in relation to the declaration specified by paragraph (5) and authorisations specified by paragraphs (6) and (7) as if they were made in relation to an application made by the qualifying individual to open an account pursuant to regulation 12.

(9) For the purposes of paragraphs (5) to (8)—

(a)references in regulation 12 to “the applicant” are references to the qualifying individual making the declaration specified by paragraph (5) or giving an authorisation specified in paragraphs (6) and (7);

(b)references in regulation 12(3)(c) to (f) to “the year in which paragraph (2) refers” (the first year to which the application to open the account relates) are references to the year in which the declaration specified by paragraph (5) is made by the qualifying individual.

Subscriptions to a junior ISA accountU.K.

4ZB.—(1) Any person may subscribe to a junior ISA account provided the overall amount subscribed by that person and any other person for any year in respect of the same named child does not exceed £3,600.

(2) An amount paid to a junior ISA account in excess of the amount mentioned in paragraph (1) is not an amount subscribed to a junior ISA account and must not be held in that account.

(3) A single subscription for an amount equal to the amount mentioned in paragraph (1) or any number of smaller amounts that, when aggregated, do not exceed the amount mentioned in paragraph (1), may be made in respect of the same named child—

(a)to a cash account held by that child,

(b)to a stocks and shares account held by that child, or

(c)in any proportion between such accounts.

(4) No subscription may be made to a cash account that is a junior ISA account held by a named child where—

(a)the balance in the account is less than one penny; and

(b)that child holds another cash account opened pursuant to a junior ISA application described in regulation 12A after the time when the account mentioned in sub-paragraph (a) was opened.

(5) No subscription may be made to a stocks and shares account that is a junior ISA account held by a named child where—

(a)the balance in the account is less than one penny; and

(b)that child holds another stocks and shares account opened pursuant to a junior ISA application described in regulation 12A after the time when the account mentioned in sub-paragraph (a) was opened.

Inalienability of a junior ISA accountU.K.

4ZC.—(1) Any assignment of, or agreement to assign, investments under a junior ISA account, and any charge on or agreement to charge any such investments, is void.

(2) On the bankruptcy of the named child holding a junior ISA account, the entitlement to investments under it does not pass to any trustee or other person acting on behalf of the child’s creditors.

(3) “Assignment” includes assignation; and “assign” is to be construed accordingly.

(4) “Charge on or agreement to charge” includes a right in security over or an agreement to create a right in security over.

(5) “Bankruptcy”, in relation to a named child, includes the sequestration of the child’s estate.

(6) Paragraph (1) shall not render void anything done to vest title to an account investment as required by regulation 4(6)(b)(ia) or 15(a) by virtue of—

(a)a transfer of an account in accordance with regulation 21B; or

(b)a change of registered contact in relation to a junior ISA account.

Permitted withdrawals from a junior ISA accountU.K.

4ZD.  Withdrawals from a junior ISA account may only be made—

(a)by the account manager, to settle any management charges and other incidental expenses, which are due by or under the management agreement,

(b)in accordance with regulation 4ZE, or

(c)where the account manager is satisfied that the named child who held the account has died.

Permitted withdrawals from a junior ISA account where the named child is terminally illU.K.

4ZE.—(1) A registered contact may make a claim to the Board for withdrawals from a junior ISA account to be permitted in accordance with this regulation.

(2) The claim shall be—

(a)made in a manner prescribed by the Board, which shall include the giving of any consent necessary for the verification or consideration of the claim, and

(b)accepted in either of the following cases:

• Case 1

  The named child holding the account has been, or is, accepted by the Department for Work and Pensions as falling within section 72(5) of the Social Security Contributions and Benefits Act 1992 (special rules for terminally ill person’s entitlement to care component of disability living allowance).

• Case 2

  Evidence that the named child holding the account is terminally ill has been supplied to the satisfaction of the Board.

(3) The Board shall issue a letter to the registered contact authorising withdrawals from the account under this regulation, and shall also notify the account manager.

(4) Once a claim has been accepted, withdrawals of any amount (including the proceeds from a policy of life insurance and an amount sufficient to close the account) may be made by the registered contact at any time (but this does not include the transfer of a policy of life insurance otherwise than in accordance with regulation 21B).

(5) Where account investments are withdrawn in a form other than sterling currency, the named child shall be treated as having sold the account investments in question, and as having reacquired them in his personal capacity, for a consideration equal to their market value at the time of their withdrawal.

(6) In this regulation, “terminally ill” has the meaning in section 66(2)(a) of the Social Security Contributions and Benefits Act 1992.]

[F100[F101Repair of certain incompatible account and excess subscriptions - accounts other than junior ISA accounts]U.K.

4A.—(1) An invalid account is “eligible for repair” if, in relation to the year in which the subscriptions to the account were made (“the relevant year”), it satisfies—

[F102(a)both the First and Second Conditions below, or

(b)the Third Condition.

• First Condition

  The account is invalid because a subscription to the account causes the account investor to breach the conditions in [F103regulation 4(1B)(a) or (b)] (which, taken together, allow an individual to subscribe to a single cash account and a single stocks and shares account, in a particular year) and for no other reason.

• Second Condition

  The account is (disregarding any account exempt from tax under regulation 4B) the earliest account in the relevant year, the subscriptions to which caused the account investor to breach the conditions in [F103regulation 4(1B)(a) or (b)], as the case may be (that is, it was first subscribed to earlier in that year than any other such account).

• Third Condition

  The account is invalid because a subscription to the account breaches the overall subscription limit in [F104regulation 4ZA(1)(b)], and for no other reason.]

(2) In this regulation—

(a)where an account investor subscribes to a particular account in more than one year, each year’s subscriptions shall be treated as a separate account for the purposes of this regulation, and regulation 4B (except for determining when an account is closed) only;

(b)“date of discovery” means the date on which an officer of the Board gives a notice (“notice of discovery”) to the account manager or account investor that the account is invalid, and (if appropriate) directions under paragraph (5) below;

F105(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)“valid account” means an account which (apart from under this regulation) is exempt from tax under regulation 22(I);

(e)“invalid account” means a scheme of investment which is not exempt from tax under these Regulations but which (if so exempt) would be an account, within the meaning in [F106regulation 4(1A)(a)] and, in relation to an invalid account, references to an account [F107and component] have corresponding meanings; and

(f)(for the avoidance of doubt) “repair” of an account is without prejudice to loss of, and accounting to the Board for, any relief from tax given for the period up to the date of discovery.

(3) An invalid account which is eligible for repair shall be treated as—

(a)exempt from tax under this regulation (as if under regulation 22), and

(b)complying with the conditions of regulation [F108regulation 4(1B)(a) or (b), or 4ZA(1) or (2)], as the case may be,

as from the date of discovery, to the extent of the relevant proportion mentioned in paragraph (4)(b).

(4) [F109(a) Calculate the extent to which the subscriptions made (and counting towards the subscription limits) during the relevant year—

(i)to that account, any other account which is eligible for repair, and any valid account (but ignoring subscriptions to any closed account within the meaning in regulation 4B)) do not exceed,

(ii)the subscriptions limits in [F110regulation 4ZA(1) and (2)], as the case may be, and]

(b)an officer of the Board shall apportion that result between the accounts mentioned in sub-paragraph (a)(i), and the amount apportioned to the account mentioned in paragraph (3) is the relevant proportion.

(5) The account manager must comply within 30 days with any directions in the notice of discovery which—

(a)make the apportionment under paragraph (4)(b) and identify the account and component from which excess subscriptions or allocations (if any) are to be removed;

(b)direct the removal of subscriptions and proceeds representing them from an account; or

(c)direct the removal of subscriptions and proceeds representing them from a component.

[F111(6) For the purposes of this regulation, a subscription to an account that is a junior ISA account shall be disregarded.]]

[F112Closure of [F113cash] account [F114that is not a junior ISA account] prior to the opening of the same type of account to be disregarded onceU.K.

4B.—(1) Where—

(a)an account investor, within the same year—

(i)subscribes to a [F115cash] account,

(ii)then closes it (“the closed account”), and

(iii)subsequently first subscribes to another [F116cash account], and

(b)the closed account was (apart from under this regulation) exempt from tax under regulation 22(1),

the earliest account in that year to fall within the terms of sub-paragraph (a)(iii) (the “first later account”) shall be eligible for the relief in paragraph (2).

(2) The first later account shall be treated, as from the date of the first subscription to it mentioned in paragraph (1)(a)(iii) [F117as complying with the conditions of [F118regulation 4(1B)(a)]] in the same manner as the closed account.

(3) In this regulation, an account is closed where—

(a)the account investor withdraws from the account all account investments, other proceeds in respect of such investments and cash, representing subscriptions to the account (and closure shall be treated as occurring at the date of such withdrawal), and

(b)no further subscriptions to the account are made during the remainder of the year, after such withdrawal.]

[F119Removal of insurance components at 6th April 2005U.K.

4C.—(1) This regulation applies to accounts which include (or are made up of) an insurance component immediately before 6th April 2005 (“the transitional time”).

(2) Where all the policies of life insurance falling within regulation 9, held under the component at the transitional time, were issued in respect of an insurance made before 6th April 2004, the component—

(a)if the account is, or had been, designated as a maxi-account, shall be treated on and from 6th April 2005 as merged into the stocks and shares component for that account; and

(b)if the account is, or had been, designated as a mini-account, shall be treated on and from 6th April 2005 as a stocks and shares component of the same account.

(3) Where any of the policies of life insurance falling within regulation 9, held under the component at the transitional time, were issued in respect of an insurance made on or after 6th April 2004—

[F120(a)the condition in regulation 7(15) shall be applied to those policies on 6th April 2005, modified as if for “the date” to “five years” there were substituted “6th April 2005”;]

(b)if all those policies satisfy that condition, paragraph (2)(a) or (b), as the case may be, shall apply to the component;

(c)if any of those policies does not satisfy that condition, the component—

(i)if the account is, or had been, designated as a maxi-account including a cash component, shall be treated on and from 6th April 2005 as merged into the cash component for that account; and

(ii)in any other case, shall be treated on and from 6th April 2005 as a cash component for the same account.]

[F121Removal of maxi-accounts, mini-accounts and TESSA only accounts at 6^th April 2008U.K.

4D.—(1) This regulation applies to accounts in existence immediately before 6^th April 2008 (“the transitional time”).

(2) An account that, at the transitional time, is or has been designated as a TESSA only account shall be treated as a cash account on and from 6^th April 2008.

(3) An account that, at the transitional time, is or has been designated as a mini-account made up of a cash component shall be treated as a cash account on and from 6^th April 2008.

(4) An account that, at the transitional time, is or has been designated as a mini-account made up of a stocks and shares component shall be treated as a stocks and shares account on and from 6^th April 2008.

(5) An account that, at the transitional time, is or has been designated as a maxi-account and is made up of a stocks and shares component only, shall be treated as a stocks and shares account on and from 6^th April 2008.

(6) Where an account, at the transitional time, is or has been designated as a maxi-account and is made up of two components—

(a)the stocks and shares component, if it holds investments or cash at the transitional time, shall be treated as a stocks and shares account on and from 6^th April 2008; and

(b)the cash component, if it holds investments or cash at the transitional time, shall be treated as a separate cash account on and from 6^th April 2008.]

Treatment of sums held in accounts managed by Icesave BankU.K.

F1225A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F123Treatment of certain sums held in accounts managed by Keydata Investment Services LimitedU.K.

5B.—(1) This regulation applies if—

(a)at 8^th June 2009, an account investor had an account holding SLS Capital S.A. Secure Income Bonds, issue 1, 2 or 3 (“the Bonds”), for which the account manager was Keydata Investment Services Limited (“Keydata”) which went into administration on that date;

(b)the investor has received from the Administrators of Keydata a certificate containing the following information—

(i)the investor’s full name and permanent residential address, including postcode;

(ii)the investor’s Keydata client reference number;

(iii)the date of investment in the Bonds;

(iv)the amount (if any) subscribed in cash;

(v)the amount (if any) subscribed by an ISA transfer;

(vi)the total amount subscribed (for investment in the Bonds); and

(vii)the maximum amount that can be reinvested using the certificate.

(2) Where this regulation applies, the account investor may make a single subscription to a stocks and shares account held by him or her with another account manager—

(a)not exceeding the maximum stated in the certificate under paragraph (1)(b)(vii);

(b)not later than 5^th April 2011; and

(c)giving the certificate to the new account manager.

(3) The subscription made under this regulation shall not count towards the subscription limits in [F124regulation 4ZA(1)].

(4) The new account manager must—

(a)treat the subscription made under this regulation in the same way as an account transferred from another account manager to him; and

(b)retain either the certificate mentioned in paragraph (1)(b), or a copy of it.]

[F125Treatment of certain sums held in dormant accountsU.K.

5C.—(1) Regulations 30 and 31 (information by account managers) shall not apply to a dormant account, while section 1 or 2 of the Dormant Bank and Building Society Accounts Act 2008 (“the 2008 Act”) applies in relation to that account.

(2) Where, following a repayment claim, the balance of a dormant account is paid—

(a)back into the account (in a case where the original cash account can be reinstated with the same account manager, the same account investor and number), or

(b)into another cash account in the same account investor’s name, with the same account manager (in any other case),

the payment into the account shall not count towards the subscription limits in [F126regulation 4ZA(2)].

(3) In this regulation, “repayment claim” means a repayment claim mentioned in section 5(6) of the 2008 Act, and other terms used in this regulation and that Act have the same meaning in this regulation as in that Act.]

Transfers from matured tax-exempt special savings accountsU.K.

F1275.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General investment rulesU.K.

6.—(1) All transactions by way of purchase by an account manager of investments under an account shall be made—

[F128(a)in the case of an authorised fund which is a dual priced unit trust, at the manager’s price for the sale of the relevant class of units within the meaning of, and complying with the requirements of, [F129rules 6.3.5 and 6.3.5B of the Collective Investment schemes sourcebook];]

[F128(b)in the case of an authorised fund which is a single priced unit trust or an open-ended investment company, at the price of a unit or share within the meaning of, and complying with the requirements of, [F130rules 6.3.5 and 6.3.5A of the Collective Investment schemes sourcebook]; and]

(c)in the case of all other account investments, at the price for which those investments might reasonably be expected to be purchased in the open market.

[F131(1ZA) In paragraph (1)(a) and (b)—

F132. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“a dual priced unit trust” means an authorised unit trust in respect of which the manager gives different prices for buying and selling units at the same time;

“a single priced unit trust” means an authorised unit trust in respect of which the manager gives the same price for buying and selling units at the same time.]

(2) All other transactions by way of sale or otherwise by an account manager in investments under an account shall be made at the price for which those investments might reasonably be expected to be sold or otherwise transacted, as the case may be, in the open market.

(3) Investments, or rights in respect of investments, may not at any time—

(a)be purchased or made otherwise than out of cash which an account manager holds under an account [F133and component], for which those investments or rights are qualifying investments; or

(b)be purchased from—

(i)an account investor, or

(ii)the spouse [F134or civil partner] of an account investor,

so as to become account investments under an account to which the account investor subscribes or has subscribed.

(4) Subject to paragraphs (5) and (6), [F135cash subscriptions and other cash] held by an account manager under an account shall be held only in sterling and be deposited in—

(i)an account with a deposit-taker [F136(including for this purpose a credit union)], or a deposit account or a share account with a building society, or

(ii)in the case where the account manager is [F137the Director of Savings], an account with [F137the Director of Savings],

which is designated as an ISA account for the purposes of these Regulations only.

(5) An account manager who is a European institution, a relevant authorised person or an assurance undertaking may hold [F135cash subscriptions and other cash] held under an account in the currency of the EEA State in which he has his principal place of business and may deposit such cash in an account, which is designated as mentioned in paragraph (4), with any person authorised under the law of that State to accept deposits.

(6) Cash by way of dividends, interest, distributions, and other rights or proceeds in respect of qualifying investments for any [F138account] shall at all times be recorded and accounted for separately from that for any other [F138account], and may be invested only—

(a)in qualifying investments for the [F139appropriate] component; or

(b)by way of cash deposit in accordance with paragraphs (4) and (5).

Qualifying investments for a stocks and shares componentU.K.

7.—(1) This regulation specifies the kind of investments (“qualifying investments for a stocks and shares component") which may be purchased, made or held under a stocks and shares component, and in this regulation and regulations 31 and 34, “shares" without more includes stock.

(2) Qualifying investments for a stocks and shares component to which paragraph (1) refers are—

(a)shares, not being shares in an investment trust[F140—

(i)issued by a company wherever incorporated,

(ii)subject to paragraph (3), officially listed on a recognised stock exchange, and

(iii)in circumstances where the shares in question satisfy the condition specified in paragraph (15), or were held under the component on 6th October 2005;]

(b)securities (“qualifying securities")—

(i)issued by a company wherever incorporated,

[F141(ii)where the securities in question satisfy—

(a)at least one of the conditions specified in paragraph (5), [F142and]

(b)the condition specified in paragraph (6),] F143...

F143(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)in the case of securities of an investment trust, purchased or acquired by the account manager in circumstances where the trust satisfies the conditions specified in [F144paragraph] (8);

[F145(c)gilt-edged securities which satisfy the condition specified in paragraph (12);

(ca)any securities issued by or on behalf of a government of any EEA State, which satisfy the condition specified in paragraph (12);

(cb)any securities which–

(i)in relation to a security mentioned in sub-paragraph (ca), would be a strip of that security if “strip” had the same meaning as in section 47 of the Finance Act 1942, with the omission of the words “issued under the National Loans Act 1968”, and

(ii)satisfy the condition specified in paragraph (12);]

[F146(cc)securities issued by a multilateral institution, contributions to which may be reported as official development assistance, listed in Part I of Annex 2 to the DAC Statistical Reporting Directive (approved by the Development Assistance Committee of the Organisation for Economic Co-operation and Development), where the securities satisfy the conditions in paragraphs (5)(b) and (6);]

(d)shares in an investment trust, listed in the Official List of the Stock Exchange, in circumstances where the trust satisfies the conditions specified in [F147paragraph] (8);

F148(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)units in, or shares of, a [F149UK UCITS or recognised UCITS], in circumstances where the [F150units or shares satisfy the condition specified in paragraph (15)];

[F151(g)qualifying units in or shares of a non-UCITS retail scheme, in circumstances where the units or shares satisfy the condition specified in paragraph (15);]

(h)subject to the conditions specified in paragraph (10)[F152—

(i)shares which the qualifying individual has exercised the right to acquire in accordance with the provisions of [F153an approved SAYE option scheme],

(ii)shares which have been appropriated to the qualifying individual in accordance with the provisions of an approved profit sharing scheme, or

(iii)plan shares of an approved [F154SIP] which cease to be subject to the plan but have remained in the beneficial ownership of the participant,]

and such shares shall be treated as fulfilling the condition as to payment of cash in [F155regulation 4(1B)(d)];

[F156(ha)a depositary interest;]

(j)cash deposited in accordance with regulation 6(4) to (6) which an account manager holds for the purpose of investment in investments which are qualifying investments for a stocks and shares component.

[F157(k)investments which—

(i)were held under a stocks and shares component [F158or a personal equity plan] on 28th November 2001,

(ii)on that date were admitted to trading on a recognised stock exchange in an EEA State and were not listed by a competent authority in an EEA State for the purposes of Council Directive 2001/34,

(iii)since that date have not ceased to be so admitted and have not become so listed,

(iv)do not fall within any of the other sub-paragraphs of this paragraph, and

(v)are not investments which, having fallen within any of those sub-paragraphs, have ceased so to fall on or after that date.]

[F159(l)investments which—

(i)were held under the stocks and shares component [F160or a personal equity plan] on 6th April 2004; and

(ii)immediately before that date, fell within sub-paragraphs (e), (f) or (g), or sub-paragraph (ha) so far as the relevant investments (within the meaning in the definition of “depositary interest”) fell within any of those sub-paragraphs.]

[F161(m)units in a relevant collective investment scheme specified as a stakeholder product by regulation 5 of the Stakeholder Products Regulations, in circumstances where the units satisfy the condition in paragraph (15);

(n)policies of life insurance falling within regulation 9, issued in respect of an insurance made on or after 6th April 2005, in circumstances where the policy satisfies the condition in paragraph (15);

(o)policies of life insurance falling within regulation 9, issued in respect of an insurance made before—

(i)6th April 2004, in a case where regulation 4C(2)(a) or (b) applies, or

(ii)6th April 2005, in a case where regulation 4C(3)(b) applies.]

[F162(p)in the case of a personal equity plan which is treated on and from 6^th April 2008 as a stocks and shares account, investments which, immediately before that date, were qualifying investments for the plan under regulation 6(2)(m) of the Personal Equity Plan Regulations 1989;]

(3) An investment in shares fulfils the condition as to official listing in paragraph (2)(a) or (d) if—

(a)in pursuance of a public offer, the account manager applies for the allotment or allocation to him of shares in a company or trust which are due to be admitted to such listing within 30 days of the allocation or allotment, and which, when admitted to such listing, would be qualifying investments for a stocks and shares component, and

(b)the shares are not allotted or allocated to the account manager in the circumstances specified in paragraph (4).

(4) The circumstances specified in this paragraph are where—

(a)the allotment or allocation of the shares was connected with the allotment or allocation of—

(i)shares in the company or trust of a different class, or

(ii)rights to shares in the company or trust of a different class, or

(iii)shares or rights to shares in another company or trust, or

[F163(iv)units in or shares in, or rights to units in or shares in, an authorised fund or a part of an umbrella scheme[F164, or]]

(vi)securities or rights to securities of the company or trust, or of another company or trust,

to the account manager, the account investor or any other person; and

(b)the terms on which the first-mentioned shares in this paragraph were offered were significantly more favourable to the account manager or account investor than they would have been if their allotment or allocation had not been connected as described in sub-paragraph (a).

(5) The conditions specified in this paragraph are—

(a)that the shares in the company issuing the securities are listed on the official list of a recognised stock exchange;

(b)that the securities are so listed;

(c)that the company issuing the securities is a 75 per cent. subsidiary of a company whose shares are so listed.

(6) The condition specified in this paragraph is that, judged at the date when each of the securities is first held under the account, the terms on which it was issued do not—

(a)require the loan to be repaid or the security to be re-purchased or redeemed, or

(b)allow the holder to require the loan to be repaid or the security to be repurchased or redeemed except in circumstances which are neither certain nor likely to occur,

within the period of five years from that date.

F165(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) The condition specified in this paragraph is that not more than 50 per cent. in value of the investments of the [F166investment trust] are [F167either–

(a)securities which would not be qualifying securities, or

(b)securities which would not fall within any of sub-paragraphs (c) to (cb) of paragraph (2),

if paragraph (6), or paragraph (6) as it applies with the modifications in paragraph (12), as the case may be,] required the terms on which they were issued to be judged at the date when they first became investments of the [F168investment trust].

F169(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) The conditions specified in this paragraph are—

(a)in relation to shares which the individual has exercised his right to acquire in accordance with the provisions of [F170an approved SAYE option scheme], that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the exercise of that right;

(b)in relation to shares appropriated to the individual in accordance with the provisions of an approved profit-sharing scheme, that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the date when the individual directed the trustees to transfer the ownership of the shares to him or, if earlier, the release date in relation to the shares;

[F171(ba)in relation to plan shares mentioned in paragraph (2)(h)(iii), that the shares are transferred to the account manager or his nominee before the expiry of the period of 90 days following the date when the plan shares ceased to be subject to the plan;]

(c)that the aggregate market value at the date of transfer of any shares transferred to the account manager or his nominee in accordance with sub-paragraphs [F172(a), (b) or (ba)] in any year, and the individual’s cash subscriptions in that year [F173to that account, do not together exceed the overall subscription limit in [F174regulation 4ZA(1)(b)] in that year, reduced by the subscriptions by the individual in that year to a cash account].

(11) In paragraph (4)(a), “company" means any body corporate having a share capital.

[F175(12) The condition specified in this paragraph is the condition specified in paragraph (6), omitting sub-paragraph (b) of that paragraph and the word “or” after sub-paragraph (a).]

[F176(13) The references to “shares” in paragraphs (2)(h) and (10) shall include references to a depositary interest where the relevant investments in question (referred to in paragraphs (a) and (b) of the definition of “depositary interest”) are shares falling within both paragraphs (2)(h) and (10).]

[F177(14) Qualifying investments for a stocks and shares component falling within sub-paragraph (ha) of paragraph (2), so far as the relevant investments (within the meaning given in the definition of “depositary interest”) fall within any of sub-paragraphs [F178(a), F179...] F180... (f)[F181or (g)] of that paragraph, must satisfy the condition specified in paragraph (15).

[F182(15) The condition specified in this paragraph is that, judged at the date on which the qualifying investments in question become held in the account (and having regard to the contractual terms and conditions then in existence) the account investor will not be entitled to a secured minimum return at any time falling within the following 5 years. The account investor is entitled to a secured minimum return if—

(a)the contract under which the investments were acquired, or any other transaction entered into by the account investor or any other person, or

(b)the nature of the underlying subject matter of the investments,

have the effect that the account investor is not exposed, or not exposed to any significant extent, to the risk of loss from fluctuations in the value of the investments exceeding 5% of the capital consideration paid or payable for the acquisition of those investments.]

(16) In this regulation references, in relation to qualifying investments, to—

(a)the underlying subject matter are references to or to the value of the investments, currencies or other matters to which, or to the value of which, those qualifying investments or their value is referable [F183, and in the case of a policy of life insurance, under whose terms some or all of the benefits are determined by reference to fluctuations in, or in an index of, the value of any property of any description (whether or not specified in the policy or contract), that property or that index];

(b)the capital consideration paid [F184or payable include premiums paid or payable under a policy of life insurance, and] include the incidental costs of acquisition; and

(c)the value are to be construed applying regulation 6(2), but deducting the incidental costs that would be incurred by a disposal [F185and, in the case of a policy of life insurance, omitting any benefits payable in the event of the death of the account investor].]

[F186(17) Where a policy of life insurance confers on the person to whom it is issued an option to have another policy issued for it or to have any of its terms changed, the condition in paragraph (15) shall only be satisfied if it would also be satisfied if each or any of the changes capable of being made in pursuance of such an option had been made.]

Qualifying investments for a cash componentU.K.

8.—(1) This regulation specifies the kind of investments (“qualifying investments for a cash component") which may be purchased, made or held under a cash component.

(2) Qualifying investments for a cash component to which paragraph (1) refers are, subject to paragraph (3)—

[F187(a)cash deposited in a deposit account with—

(i)a building society,

(ii)a credit union,

(iii)a person within subsection (2)(b) of section 991 of the Income Tax Act 2007 (read with subsection (3) of that section), or

(iv)a relevant European institution;]

(b)cash deposited in a share account with a building society;

F188(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F188(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F189(e)such investment deposits with the National Savings Bank which, according to the terms and conditions subject to which they are made, are expressly permitted to be held under a cash component of an account;

(f)any securities issued under the National Loans Act 1968–

(i)for the purpose of or in connection with raising money under the auspices of the Director of Savings within the meaning of section 11(1)(a) of the National Debt Act 1972, and

(ii)other than national savings certificates, premium savings bonds, national savings stamps and national savings gift tokens,

which, according to the terms and conditions subject to which they are issued and purchased, are expressly permitted to be held under a cash component of an account.]

[F190(g)investments falling within sub-paragraphs [F191(a), F192...] F193... (f) [F194or (g)] of regulation 7(2), in circumstances where the unitsF192... or shares do not satisfy the condition specified in regulation 7(15);

(h)a depositary interest (with the references in that definition to a stocks and shares component and to regulation 7(2)(a) to (h) being replaced with references to a cash component and to regulation 8(2)(a) to (g)).]

[F195(j)a deposit account specified as a stakeholder product by regulation 4 of the Stakeholder Products Regulations;

(k)units in a relevant collective investment scheme specified as a stakeholder product by regulation 5 of the Stakeholder Products Regulations, in circumstances where the units do not satisfy the condition in regulation 7(15);

(l)policies of life insurance, falling within regulation 9, issued in respect of an insurance made on or after 6th April 2005, in circumstances where the policy does not satisfy the condition in regulation 7(15);

(m)policies of life insurance, falling within regulation 9, issued in respect of an insurance made before 6th April 2005, in a case where regulation 4C(3)(c)(i) or (ii) applies.]

[F196(n)arrangements falling within section 47 of the Finance Act 2005 (alternative finance arrangements) under which the person referred to in that section as Y is a financial institution;

(o)arrangements falling within section 49 of that Act.]

[F197(3) A deposit account or share account which is a qualifying investment for a cash component falling within sub-paragraphs (a) or (b) of paragraph (2) respectively (“Account A”) must not be connected with any other account falling within the descriptions in those sub-paragraphs (“Account B”), held by the account investor or any other person.

(4) For the purposes of paragraph (3), Account A is connected with Account B if all of the following circumstances apply—

(a)either of the accounts was opened with reference to the other, or with a view to enabling the other to be opened on particular terms, or with a view to facilitating the opening of the other on particular terms,

(b)the terms on which Account A was opened would have been significantly less favourable to the holder if Account B had not been opened, and

(c)Account B is not a tax exempt account.

(5) The following are tax exempt accounts for the purposes of paragraph (4)—

(a)an account opened (or treated as opened) in accordance with regulation 12 or 12A;

(b)a child trust fund.]

[F198Insurance policies]U.K.

9.—[F199(1) Policies referred to in regulation 7(2)(n) or (o) or 8(2)(l) or (m) must, subject to compliance with [F200paragraphs (4) to (9) as appropriate], satisfy the conditions specified in paragraph (3).]

[F199(2) In paragraph (1) “policies” includes rights under a linked long-term contract specified as a stakeholder product by regulation 6 of the Stakeholder Products Regulations.]

(3) The conditions specified in this paragraph are that—

(a)the insurance is on the life of the account investor only;

(b)the terms and conditions of the policy provide—

(i)that the policy may only be owned or held as a qualifying investment for F201...an account which satisfies the provisions of these Regulations;

(ii)[F202in the case of a policy that is held under an account that is not a junior ISA account,] that the policy shall automatically terminate if [F203it comes to the notice of the account manager, in any manner, that either of the events specified in paragraph (8) has occurred in relation to the policy;]

[F204(iia)in the case of a policy that is held under an account that is a junior ISA account, that the policy shall automatically terminate if it comes to the notice of the account manager, in any manner, that the event specified in paragraph (8A) has occurred in relation to the policy;]

[F205(iii)subject to paragraph (3B), for an express prohibition of any transfer, assignment or (in Scotland) assignation of the policy to the account investor who holds the account under which the policy is held or, in the case of a policy held under an account that is a junior ISA account, the registered contact or named child in relation to that account;]

F206(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F207(c)the policy evidences or secures a contract of insurance which—

(i)falls within paragraph I or III of Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, or

(ii)would fall within either of those paragraphs if the insurer was a company with permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance;]

(d)the policy is not—

(i)a contract to pay an annuity on human life, or

(ii)a personal portfolio bond within the meaning given by [F208[F209section 516 of ITTOIA 2005], or]

(iii)a contract, the effecting and carrying out of which constitutes “pension business" within the meaning given by section 431B(1) of the Taxes Act M15; and

(e)after the first payment in respect of a premium in relation to the policy has been made, there is no contractual obligation on any person to make any other such payment.

[F210(3A) In paragraphs (3)(b)(iii) and (3B), “policy” includes—

(a)the rights conferred by a policy; and

(b)any share or interest in the rights conferred by a policy.

(3B) The prohibition required by paragraph (3)(b)(iii) must not prohibit—

(a)the cash proceeds from the termination of the policy or a partial surrender of the policy ownership—

(i)being paid to the account investor where the policy is held under an account that is not a junior ISA account;

(ii)being withdrawn in accordance with regulation 4ZD (permitted withdrawals from a junior ISA account) or 4ZE (permitted withdrawals from a junior ISA account where the named child is terminally ill);

(b)the transfer of title to the policy so that it is vested as required from time to time by regulations 4(6)(b)(i) and (ia) (general conditions for accounts) and 15(a) (special provisions relating to insurer-managers) by virtue of—

(i)a transfer of an account in accordance with regulations 21 or 21B;

(ii)a change of registered contact in relation to a junior ISA account; or

(iii)an account ceasing to be a junior ISA account upon the named child in relation to the account attaining 18 years;

(c)the vesting of the policy in the personal representatives of the account investor.]

(4) A policy F211...must not be connected with any other policy (“the linked policy"), held by the account investor or any other person, and for this purpose a policy is connected with another if—

(a)either policy was issued in respect of an insurance made with reference to the other, or with a view to enabling the other to be made on particular terms, or with a view to facilitating the making of the other on particular terms, and

(b)the terms on which the first-mentioned policy in this paragraph was issued would have been significantly less favourable to the holder if the linked policy had not been issued.

(5) References to “the linked policy" in paragraph (4) shall include a contract of insurance, and references to the issuing of the linked policy shall include the making of such a contract.

(6) No sum may at any time, at or after the making of the insurance, be lent to or at the direction of the account investor by or by arrangement with the insurer for the time being responsible for the obligations under the policy.

[F212(7) Where [F213any of the events specified in paragraphs (8) or (8A)] occurs in relation to a policy, the policy shall nevertheless be treated, for the purposes of these Regulations, [F214excepting paragraphs (3)(b)(ii) and (iia), (8) and (8A)] and regulation 36, as if it had satisfied the conditions in paragraph (3)(b)(i) during the period–

(a)commencing at the time at which the specified event occurred, and

(b)ending immediately before–

(i)the end of the [F215final insurance year in relation to the policy, within the meaning given by section 499 of ITTOIA 2005], or

(ii)the time at which the specified event came to the notice of the account manager,

whichever first occurs (the “termination event”).

(8) The events specified in this paragraph are–

(a)that the policy has ceased to be one in respect of which the conditions in paragraph (3)(b)(i) are satisfied; and

(b)that those conditions were not satisfied in relation to the policy at the date on which the insurance was made.

[F216(8A) The event specified in this paragraph is that—

(a)the policy has ceased to be one in respect of which the conditions in paragraph (3)(b)(i) are satisfied or those conditions were not satisfied in relation to the policy at the date on which the insurance was made; and

(b)the breach or non-compliance cannot be remedied in accordance with regulation 21C or has not been remedied within a reasonable time.]

(9) Where–

(a)it comes to the notice of the account manager, in any manner, that an event specified in [F217paragraph (8) or (8A)] has occurred in relation to a policy, and

(b)the account manager is not the insurer for the time being responsible for the obligations under the policy or, where the policy is not still in existence, the person who was the last such insurer,

the account manager shall, within 30 days of the event coming to his notice, give notice to that insurer, specifying the event mentioned in sub-paragraph (a), and the termination event.]

Qualifying individuals who may invest under an account [F218that is not a junior ISA account] U.K.

10.—[F219(1) This regulation specifies the description of individual (“qualifying individual”) who may invest under an account that is not a junior ISA account.]

(2) A qualifying individual to whom paragraph (1) refers is an individual—

[F220(a)who, in the case of a cash account, is 16 years of age or over and, in the case of a stocks and shares account, is 18 years of age or over;

(b)who, in the case of a stocks and shares account, has not subscribed, and will not subscribe, to any other stocks and shares account, in the year in which the subscription is made;

(c)who, in the case of a cash account, has not subscribed, and will not subscribe, to any other cash account, in the year in which the subscription is made;

(ca)who has not exceeded the appropriate overall subscription limit in [F221regulation 4ZA(1)], or the [F222applicable] subscription limit in [F223regulation 4ZA(2)], in that year;]

(d)(i)who is resident and ordinarily resident in the United Kingdom, or

[F224(ii)who, though not resident in the United Kingdom, has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003,][F225, or

(iii)who, though not resident in the United Kingdom, is married to [F226or in a civil partnership with] a person mentioned in paragraph (ii)]

[F227(3) For the purposes of paragraph (2)(b) and (c), a subscription to a junior ISA account shall be disregarded.]

Account investor ceasing to qualifyU.K.

11.  Notwithstanding any other provision of these Regulations an account investor who, after subscribing to an account, at any time ceases to fulfil the conditions of regulation 10(2)(d) may retain the benefits of the account (including the right to any relief or exemption due under the account) subsisting at that time but, so long as he fails to fulfil those conditions, shall not be entitled to subscribe further to such an account.

[F228Conditions for application to open an account that is not a junior ISA account]U.K.

12.—(1) An application by an individual to [F229open] an account in the year in which he first subscribes to that account, and in the year following a year in which that individual has not subscribed to the account, must be made to an account manager in a statement and, subject to paragraph (5), must fulfil the conditions specified in paragraphs (2), (3) and (4).

(2) An application must specify the first year to which the application relates.

(3) An application [F230must contain] a declaration by the applicant that—

[F231(a)his application is to [F232open] a stocks and shares account or cash account, as the case may be;]

(b)the declaration shall have effect for the year to which paragraph (2) refers, and each successive year following that year, in which the applicant subscribes to the account;

(c)all cash subscriptions made, and to be made, to the account are the applicant’s cash;

[F233(d)in the case of a stocks and shares account, the applicant—

(i)has not subscribed, and will not subscribe, to any other stocks and shares account, in the year to which paragraph (2) refers, and

(ii)will not subscribe to any other stocks and shares account, in each successive year following that year, in which the declaration has effect;]

[F233(e)in the case of a cash account, the applicant—

(i)has not subscribed, and will not subscribe, to any other cash account, in the year to which paragraph (2) refers, and

(ii)will not subscribe to any other cash account, in each successive year following that year, in which the declaration has effect;

(ea)that the applicant has not subscribed, and will not subscribe, more than the appropriate overall subscription limit in [F234regulation 4ZA(1)] (aggregating subscriptions to all accounts)—

(i)in the year to which paragraph (2) refers, and

(ii)in each successive year following that year, in which the declaration has effect;

(eb)that in the case of a cash account, the applicant has not subscribed, and will not subscribe, more than the subscription limit in [F235regulation 4ZA(1)(a) or (2)]—

(i)in the year to which paragraph (2) refers, and

(ii)in each successive year following that year, in which the declaration has effect;]

[F236(f)the applicant is 16 years of age or over, and—

(i)is resident and ordinarily resident in the United Kingdom, or

(ii)[F237is a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003,] or

(iii)is married to [F238or in a civil partnership with] a person mentioned in paragraph (ii),

and will inform the account manager if he ceases to be so resident and ordinarily resident, or to perform such duties, or to be married to [F239or in a civil partnership with] a person who performs such duties, as the case may be;]

F240(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) An application must contain—

(a)the applicant’s full name,

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

(c)his national insurance number, or confirmation that he does not have one, F241...

(d)his date of birth[F242,

(e)the authorisation specified in paragraph (4A)]

[F243(4A) The authorisation specified by this paragraph is authority given by the applicant to the account manager—

(a)to hold the subscriptions, account investments, interest, dividends and any other rights or proceeds in respect of those investments and cash;

(b)to make on behalf of the applicant any claims to relief from tax in respect of account investments; and

(c)to make a record in writing in accordance with paragraph (7) where that paragraph requires the account manager to do so.]

F244(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) An account manager may not accept as an account investor any individual if he has reason to believe that—

(a)he is not or might not be a qualifying individual, or

(b)he has given untrue information in his application.

[F245(7) Where an application is not in writing or the manager operates a record system under which all original written applications are not retained—

(a)the account manager must, immediately after receiving the application, record in writing on behalf of the applicant, the declaration required by paragraph (3) and authorisation required by paragraphs (4)(e) and (4A);

(b)the account manager must notify the applicant of the contents of the written record within 5 business days of making it; and

(c)the written record (as amended by any corrections notified to the account manager by the applicant within 30 days of the notification mentioned in sub-paragraph (b)) shall be treated as the applicant’s declaration required by paragraph (3) and authorisation required by paragraphs (4)(e) and (4A).]

F246(7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Section 95 of the Management Act M16 shall have effect as if—

(a)the statement and declarations to which paragraphs (1), (3) and (7) refer were a statement or declarations, as the case may be, within the meaning of subsection (1)(b), and

(b)there were substituted for subsection (3) the following words—

“(3) The relevant years of assessment for the purposes of this section are the year of assessment in respect of which any claim to relief or exemption from tax in connection with which the statement or declarations are relevant, is made, the next following, and any preceding year of assessment.”

[F247(9) An application furnished by an individual under this regulation F248... shall be regarded as in writing if it is furnished—

(a)by telephonic facsimile transmission containing the signature of the individual, or

(b)by electronic communication containing an electronic signature of the individual.

[F249(10) Where an account manager is required by paragraph (7) to make a record in writing—

(a)a record shall be regarded as being a written record if it is produced by electronic means;

(b)the notification of the contents of the record by the account manager to the applicant required by paragraph (7)(b) may be sent to the applicant by telephonic facsimile transmission or by electronic communication.]

(11) In this regulation—

• [F250“electronic communication” includes any communication conveyed by means of an electronic communications network.]

• “electronic signature” has the meaning given by section 7(2) of the Electronic Communications Act 2000.]

[F251(11A) In paragraph (3), references to subscriptions to an account do not include subscriptions to an account that is a junior ISA account.]

[F252(12) An application may be made on behalf of an individual who is suffering from mental disorder, by a parent, guardian, spouse, [F253civil partner,] son or daughter of the individual, and shall be treated for the purposes of these Regulations as an application made by the individual.

(13) In paragraph (12) “mental disorder” has the meaning given by section 1(2) of the Mental Health Act 1983 or, in Scotland, [F254section 328 of the Mental Health (Care and Treatment) (Scotland) Act 2003] or, in Northern Ireland, Article 3 of the Mental Health (Northern Ireland) Order 1986.]

[F255Conditions for application to open an account that is a junior ISA accountU.K.

12A.—(1) An application (“junior ISA application”) to open a junior ISA account with an account manager may only be made if the account will be held by an eligible child immediately following the opening of the account.

(2) An eligible child may hold—

(a)only one account set up as a cash account; and

(b)only one account set up as a stocks and shares account.

(3) For the purposes of paragraphs (2) and (7), an account holding an amount of less than one penny shall be disregarded.

(4) A junior ISA application may be made by a person who—

(a)is over 16, and

(b)in relation to the junior ISA account to be opened pursuant to the application is—

(i)a person who has parental responsibility in relation to the eligible child who will hold the account; or

(ii)the eligible child who will hold the account.

(5) A junior ISA application must be made to an account manager in a statement and must fulfil the conditions specified in paragraphs (6), (7) and (8).

(6) A junior ISA application must specify the eligible child as being the beneficial owner of the account investments under that account.

(7) A junior ISA application must contain a declaration by the applicant that—

(a)the application is made to open a junior ISA account;

(b)the information provided in accordance with paragraph (8) is true;

(c)the child who will hold the account opened pursuant to the application is not an “eligible child” within the meaning given in the Child Trust Funds Act 2004;

(d)the child who will hold the account opened pursuant to the application is—

(i)resident and ordinarily resident in the United Kingdom,

(ii)a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003,

(iii)married to or in a civil partnership with a person mentioned in paragraph (ii), or

(iv)a dependant of a person mentioned in paragraph (ii);

(e)the applicant is the person who, upon the opening of the account, will be the registered contact in relation to the account;

(f)the application is to open a stocks and shares account or cash account, as the case may be;

(g)in the case of a stocks and shares account, the applicant—

(i)has not subscribed, and will not subscribe, to any other stocks and shares account that is a junior ISA account held by the same eligible child, and

(ii)is not aware of any other stocks and shares account held by the eligible child that is a junior ISA account;

(h)in the case of a cash account, the applicant—

(i)has not subscribed, and will not subscribe, to any other cash account that is a junior ISA account held by the same eligible child, and

(ii)is not aware of any other cash account held by the eligible child that is a junior ISA account;

(i)as far as the applicant is aware, the applicant has not subscribed amounts to the account (or any other account) that, when aggregated with other subscriptions, exceed the overall subscription limit in regulation 4ZB(1) (subscriptions to accounts opened in accordance with this regulation) in relation to the eligible child who will hold the account in the year in which the junior ISA application is made; and

(j)the applicant will not knowingly subscribe amounts to the account that, when aggregated with other subscriptions, exceed the overall subscription limit in regulation 4ZB(1) applicable from time to time (subscriptions to accounts opened in accordance with this regulation) in each successive year following the year in which the junior ISA application is made.

(8) A junior ISA application must contain—

(a)the applicant’s full name,

(b)the address of the applicant’s permanent residence, including postcode,

(c)the full name of the eligible child,

(d)the date of birth of the eligible child,

(e)where the applicant is not the eligible child, the address of the eligible child’s permanent residence, including postcode,

(f)the eligible child’s national insurance number if the child—

(i)is 16 or over, and

(ii)has been issued with a national insurance number,

(g)the authorisation specified in paragraph (9).

(9) The authorisation specified by this paragraph is authority given by the applicant to the account manager (on behalf of the child who holds the account where appropriate)—

(a)to hold the subscriptions, account investments, interest, dividends and any other rights or proceeds in respect of those investments and cash;

(b)to make on behalf of the child any claim to relief from tax in respect of account investments; and

(c)to make a record in writing in accordance with paragraph (11) where that paragraph requires the account manager to do so.

(10) An account manager must not accept a junior ISA application if the account manager has reason to believe that the applicant has given untrue information in the application.

(11) Where the junior ISA application is not in writing, or the account manager operates a record system under which all original written applications are not retained—

(a)the account manager must, immediately after receiving the application, record in writing on behalf of the applicant, the declaration required by paragraph (7) and authorisation required by paragraphs (8)(g) and (9);

(b)the account manager must notify the applicant of the contents of the written record within 5 business days of making it; and

(c)the written record (as amended by any corrections notified to the account manager by the applicant within 30 days of the notification mentioned in sub-paragraph (b)) shall be treated as the applicant’s declaration required by paragraph (7) and authorisation required by paragraphs (8)(g) and (9).

(12) An application furnished by an applicant under this regulation shall be regarded as in writing if it is furnished—

(a)by telephonic facsimile transmission containing the signature of the applicant, or

(b)by electronic communication containing an electronic signature of the applicant.

(13) Where an account manager is required by paragraph (11) to make a record in writing—

(a)a record shall be regarded as being a written record if it is produced by electronic means;

(b)the notification of the contents of the record by the account manager to the applicant required by paragraph (11)(b) may be sent to the applicant by telephonic facsimile transmission or by electronic communication.

(14) In this regulation—

“electronic communication” includes any communication conveyed by means of an electronic communications network;

“electronic signature” has the meaning given by section 7(2) of the Electronic Communications Act 2000.]

Application by curator bonisU.K.

F25613.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Account manager—qualifications and Board’s approvalU.K.

14.—(1) This regulation specifies the circumstances (“qualifying circumstances") in which a person may be approved by the Board as an account manager.

(2) The qualifying circumstances to which paragraph (1) refers are the following—

(a)the person must make an application to the Board for approval in a form prescribed by the Board;

[F257(aa)if the person intends to be an account manager in relation to a junior ISA account, the person must undertake to the Board to—

(i)publicise (and update where appropriate) statements of the minimum amount which may be subscribed to a junior ISA account on a single occasion, and the permitted means of payment of subscriptions; and

(ii)inform persons proposing to make a subscription to a junior ISA account (other than the named child) that the subscription is a gift to the child;]

(b)an account manager must be—

(i)an authorised person within the meaning of [F258section 31(1)(a) or (c) of, or Schedule 5 to, the Financial Services and Markets Act 2000 who has permission to carry on one or more of the activities specified in Articles 14, 21, 25, 37, 40, 45, 51 and 53 and, in so far as it applies to any of those activities, Article 64 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 but excluding any person falling within paragraph (iv) below]; or

(ii)a European institution which [F259carries on one or more of those activities]; or

[F260(iia)in the case of a credit union, an authorised person within the meaning of section 31(1)(a) of the Financial Services and Markets Act 2000, who has permission to carry on one or more of the activities specified in Article 5 of the Financial Services And Markets Act 2000 (Regulated Activities) Order 2001;]

(iii)F261... [F262the Director of Savings], a building society, [F263a person falling within section 840A(1)(b) of the Taxes Act] or a relevant European institution; or

(iv)F264...an insurance company, within the meaning given by section 431(2) of the Taxes Act M17, an incorporated friendly society, or a registered friendly society; or

(v)[F265any] assurance undertaking which does not fall within paragraph (iv) above;

(c)an account manager must not be prevented from acting as such by [F266any requirement imposed under [F267sections 42 and 43] of the Financial Services and Markets Act 2000, or by any prohibition imposed by or under any rules made by the Financial Services Authority under that Act]; and

(d)an account manager who—

(i)is a European institution or a relevant authorised person and who does not have a branch or business establishment in the United Kingdom, or has such a branch or business establishment but does not intend to carry out all his functions as an account manager at that branch or business establishment, or

(ii)falls within sub-paragraph (b)(v),

must fulfil one of the three requirements specified in regulation 16.

(3) The terms of the Board’s approval may—

(a)approve a person to set up and administer [F268cash accounts only, or stocks and shares accounts only, or both], [F269and]

(b)include conditions designed to ensure that the provisions of these Regulations are satisfied.

Special requirements relating to insurer-managersU.K.

15.  If and so long as a person falling within regulation 14(2)(b)(iv) or (v) acts as account manager of an account, and the account investments include a policy of life insurance—

(a)the title to all such policies shall be vested in the account investor; and

(b)where a policy document or other document evidencing title to such policies of life insurance is issued, it shall be held by the account investor.

Account manager—appointment of tax representativeU.K.

16.—(1) This regulation specifies the requirements mentioned in regulation 14(2)(d).

(2) The first requirement specified in this regulation is that—

(a)a person who falls within [F270section 698(2)(b) of ITTOIA 2005] is for the time being appointed by the account manager to be responsible for securing the discharge of the duties prescribed by paragraph (5) which fall to be discharged by the account manager, and

(b)his identity and the fact of his appointment have been notified to the Board by the account manager.

(3) The second requirement specified in this regulation is that there are for the time being other arrangements with the Board for a person other than the account manager to secure the discharge of such duties.

(4) The third requirement specified in this regulation is that there are for the time being other arrangements with the Board designed to secure the discharge of such duties.

(5) The duties prescribed by this paragraph are those that fall to be discharged by an account manager under these Regulations.

(6) The appointment of a person in pursuance of the first requirement shall be treated as terminated in circumstances where—

(a)the Board have reason to believe that the person concerned—

(i)has failed to secure the discharge of any of the duties prescribed by paragraph (5), or

(ii)does not have adequate resources to discharge those duties, and

(b)the Board have notified the account manager and that person that they propose to treat his appointment as having terminated with effect from the date specified in the notice.

(7) Where, in accordance with the first requirement, a person is at any time responsible for securing the discharge of duties, the person concerned—

(a)shall be entitled to act on the account manager’s behalf for any of the purposes of the provisions relating to the duties;

(b)shall secure (where appropriate by acting on the account manager’s behalf) the account manager’s compliance with and discharge of the duties; and

(c)shall be personally liable in respect of any failure of the account manager to comply with or discharge any such duty as if the duties imposed on the account manager were imposed jointly and severally on the account manager and the person concerned.

Account manager—withdrawal by Board of approvalU.K.

17.—(1) This regulation specifies the circumstances (“the disqualifying circumstances") in which the Board may by notice withdraw their approval of a person as an account manager in relation to an account.

(2) The disqualifying circumstances to which paragraph (1) refers are that the Board have reason to believe—

(a)that any provision of these Regulations is not or at any time has not been satisfied in respect of an account managed by the account manager; or

(b)that a person to whom they have given approval to act as an account manager is not qualified so to act.

(3) The notice to which paragraph (1) refers—

(a)may withdraw an approval in part, that is, in respect of particular types of accounts specified in the notice;

(b)shall specify the date from which the Board’s approval is withdrawn; and

(c)shall specify the disqualifying circumstances.

[F271(4) On receiving the notice referred to in paragraph (1), subject to any appeal in accordance with regulation 18, the account manager shall notify the person who is the account investor in relation to the account held with the account manager of the right to transfer the account under regulations 21 or 21B (as appropriate), and the provision made by regulation 20(3).]

Account manager—appeal against withdrawal of Board’s approvalU.K.

18.—(1) An account manager to whom notice of withdrawal of approval has been given under regulation 17 may appeal against the withdrawal by notice given to the Board within 30 days after the date of the notice of withdrawal.

F272(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The like provisions as are contained in Part V of the Management ActM18 (appeals and other proceedings) shall apply to an appeal and the [F273tribunal, on an appeal notified to it, shall] confirm the notice unless F274... satisfied that the notice ought to be quashed.

Account manager ceasing to actU.K.

19.  A person shall give notice to the Board and to the account investor in the account which he manages of his intention to cease to act as the account manager not less than 30 days before he so ceases so that his obligations to the Board under the account can be conveniently discharged at or about the time he ceases so to act, and the notice to the account investor shall inform him of his right to transfer the account under regulation 21 [F275or 21B].

Account manager ceasing to qualifyU.K.

20.—[F276(1) A person shall cease to qualify as an account manager and shall notify the Board within 30 days of the relevant event in sub-paragraphs (a) to (e), of that relevant event, where—

(a)the person no longer fulfils the conditions of regulation 14;

(b)there is an insolvency event in relation to the account manager;

(c)an application has been made for a bank insolvency order or a bank administration order;

(d)in the case of a building society, a person falling within section 991 of ITA 2007 or a credit union—

(i)it ceases to be a building society or to fall within section 991 of ITA 2007 or to be a credit union, as the case may be;

(ii)its directors have made a proposal under Part 1 of the Insolvency Act 1986 for a composition in satisfaction of its debts or a scheme of arrangement of its affairs; or

(iii)a receiver or manager of its property has been appointed; or

(e)in the case of a European institution, a relevant authorised person or an assurance undertaking which falls within regulation 14(2)(b)(iv) and (v), action corresponding to any described in sub-paragraphs (b) to (d) has been taken by or in relation to the institution, person or undertaking under the law of an EEA State.]

(2) On giving the notice referred to in paragraph (1), the person shall also notify the account investor of his right to transfer the account under regulation 21 [F277or 21B (as appropriate)], and the notice shall inform the account investor of his rights under paragraph (3).

(3) Where the account investor—

(a)receives a notice under paragraph (2), or [F278regulation 17(4) or 19], and

(b)within 30 days of the sending of the notice to him, transfers the account to another account manager pursuant to regulation 21 [F279or 21B (as appropriate)],

the period between the transferor ceasing to act or to qualify as an account manager, and the transfer to the transferee, shall be ignored in determining whether the account has at all times been managed by an account manager.