A number of “free-standing amendments” will be made to the ISA and CTF legislation from 6 April 2023. The stated purposes of the changes are:
- to accommodate changes to other legislation;
- to clarify the position in cases of doubt;
- to provide additional safeguards for investors; and
- to protect the integrity of the tax-free savings landscape.
More specifically, the proposed revisions are stated to be as follows:
“The ISA and CTF Regulations will be amended by statutory instrument to accommodate changes in Northern Ireland legislation regarding terminal illness as it relates to minors ensuring that such children continue to be able to withdraw their funds when needed.
The changes will also amend the ISA Regulations to accommodate the extension of the Dormant Assets Scheme to include stocks and shares ISAs, allowing reclaimed funds to be returned to an ISA; and enabling funds recognised by the Financial Conduct Authority under the Overseas Funds Regime to be eligible for an ISA. They will also provide that Alternative Finance arrangements qualify for an Innovative Finance ISA, allowing investors to access the peer-to-peer market without compromising their beliefs
The changes will extend, to article 36H arrangements (also known as Peer-to-Peer arrangements), the requirement that loans between a Director and his company are not qualifying investments for an Innovative Finance ISA and clarify that shares in an investment trust must be listed and subject to a public offer.
Finally, updates will also be made to the ISA and CTF Regulations to introduce additional investor protections where managers cease to act or qualify, or have their approval withdrawn. The CTF Regulations will also be amended to remove certain personal information from CTF annual statements.”
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