These Guidance Notes have now been replaced by the new Guidance for ISA Managers (effective from 6 April 2008).

Transcription

1 These Guidance Notes have now been replaced by the new Guidance for ISA Managers (effective from 6 April 2008). However, Chapters of this old Guidance are still applicable for the following returns for 2007/08: Quarterly Statistical Return ISA25 - due by 5 May 2008 Annual Return & Claim PEP14 - due by 5 October 2008 Annual Return & Claim ISA14 - due by 5 October 2008 Returns of Information (PEP) on magnetic media - due by 5 July 2008 (see also HMRC PEP & ISA Bulletin 45) Returns of Information (ISA) on magnetic media - due by 4 June 2008 (see also HMRC PEP & ISA Bulletin 45) Annual Statistical Return PEP14(Stats) - due by 5 July 2008 Annual Statistical Return ISA14(Stats) - due by 4 June 2008 PEPs and ISAs Guidance Notes for PEP and ISA Managers 04/2007 1

2 13. ANNUAL RETURNS AND CLAIMS Contents What managers can claim 13.1 How to claim 13.5 Information to be supplied before claims are made 13.8 Basis of annual return and claims Assessments and recovery of tax and charges Change in rate of tax credit and lower rate of tax Repayment of foreign tax RETURNS OF INFORMATION The requirement to make a return 14.1 What period must be covered? 14.3 What must be returned? 14.4 How to make returns of information 14.6 How to complete forms PEPCOM100(Z) and ISACOM100(OCR) Submission of returns Penalties PEP AND ISA ANNUAL RETURNS OF STATISTICAL INFORMATION The requirement to make a return 15.1 What period must be covered? 15.2 What must be returned? 15.4 How to make annual returns of statistical information 15.6 How to complete forms PEP14(Stats) and ISA14(Stats) 15.7 Submission of annual returns of statistical information Penalties ISA QUARTERLY RETURNS OF STATISTICAL INFORMATION The requirement to make a return 16.1 What period must be covered? 16.3 What must be returned? 16.5 How to make quarterly returns of statistical information 16.8 How to complete ISA25(Stats) 16.9 Submission of quarterly returns of statistical information Penalties /2007 5

3 Chapter 13 Annual returns and claims CHAPTER 13 ANNUAL RETURNS AND CLAIMS What managers can claim 13.1 to 13.4 How to claim 13.5 to 13.7 Information to be supplied before claims are made 13.8 to 13.9 Basis of annual return and claims Interim claims - forms PEP 10 and ISA to 13.24c Annual return and claim - forms PEP 14 and ISA to 13.37b Assessments and recovery of tax and charges and Change in rate of tax credit and lower rate of tax Repayment of foreign tax and /

4 Chapter 13 Annual returns and claims What managers can claim 13.1 Managers (other than ISA managers who are insurer managers) can claim UK income tax deducted from income in respect of PEP or ISA investments from SSO. 13.1a PEP and ISA managers receiving interest distributions from corporate bond funds should be receiving them without deduction of income tax. Finance Act 2002 increased the number of tax-exempt bodies entitled to receive interest without deduction of income tax if at the time the payment is made, the company [making the payment] reasonably believes that one of the conditions in Section 349B [Income and Corporation Taxes Act 1988] is satisfied. The payer has no choice in the matter; where it "reasonably believes" the recipient is in one of the gross payment categories it must pay the interest without deduction of income tax. PEP and ISA managers are one of the gross payment categories. Consequently, since 1 October 2002 companies paying interest to PEP and ISA managers should have been paying the interest without deduction of income tax - provided the manager operates a single nominee in which all the underlying beneficial holders are eligible to receive gross interest as they are all PEP/ISA investors. However, if the manager has a mixed or pooled nominee in which there is a mixture of beneficial holders - some PEP/ISA entitled to gross, others non- PEP/ISA not entitled the payer will pay net and the manager will need to continue to claim from SSO as before. Any PEP or ISA manager that is still making claims in respect of interest distributions from corporate bond funds should contact the payer(s) to ensure that interest is paid without deduction of income tax if they operate a single nominee ISA managers who are insurer managers (and insurers that provide ISA policies to other ISA managers) can claim UK tax deducted and foreign withholding tax from income referable to ISA business from their tax office. Guidance for insurers will be included on the claim form R19 and in the notes sent out with a CT61 return form Blank 13.4 Blank How to claim 13.5 Claims to SSO in accordance with paragraph 13.1 must be made on form PEP10 or ISA10 (interim claims - see paragraphs c) or form PEP14 or ISA14 (annual claims see paragraphs b). Claims must be signed by an authorised officer of the manager. Employees of an administration company used by the manager (paragraph 10.1) may not sign a claim on behalf of the manager unless they are an authorised officer of the manager. 04/

5 Chapter 13 Annual returns and claims 13.6 Where SSO is satisfied with the claim they will pay the sum claimed, through the Bankers Automated Clearing Services Ltd (BACS) system, direct to the manager s bank account Claims received by SSO on or before the last working day of a calendar month will be paid on the 17 th of the following month for ISA claims, or the 21 st for PEP claims. Where the 17 th or 21 st falls on a weekend or public holiday SSO will make payment on the next working day. Information to be supplied before claims are made 13.8 Before managers make their first claim they should provide SSO with Details of signatories to claims the full name and status of up to five individuals appointed by a resolution of the manager s board or equivalent managing body to sign claims on behalf of the manager (only one signature is required on each claim) a copy of the resolution of the board or equivalent managing body appointing each signatory, and an original specimen signature of each signatory. Managers may, if they wish, include signatories described in terms of the post held, such as "the Finance Director for the time being", in their list of authorised signatories. When the post holder changes, an authorised signatory will have to provide details (name and specimen signature) of the new post holder (see paragraph 13.9), but this need not be supported by a resolution of the manager s board or equivalent managing body. Existing managers who wish to adopt this approach should notify SSO. The notification should set out the changes to the list of authorised signatories as a result of describing some, or all, in terms of the posts held. It should be signed by an authorised signatory and be supported by details (and specimen signatures) of current post holders and a resolution of the manager s board or equivalent managing body. Bank account details the full name and address of the branch of the bank to which the payments are to be made the sort code of the branch the account number any special form of identification given to the account (such as deposit, special deposit, number 2, etc.), and an account name for use by BACS. The name must not exceed 18 characters, including spaces. 04/

6 Chapter 13 Annual returns and claims 13.9 Where any of the information provided subsequently changes, managers should inform SSO in writing well before the next claim is made. Failure to do so could lead to a delay in making a payment. Basis of annual return and claims All managers must make an annual return and claim. ISA managers offering only the cash components must still submit an annual return even where they have not claimed any repayment for the year. Managers may also make interim claims, for one or more tax months. Interim claims forms PEP 10 and ISA Managers should make interim claims on form PEP 10 or ISA 10. These forms are available on the HMRC website at and can be downloaded as needed. Paper copies will not be provided Interim claims are made in respect of income with a payment date falling in one or more tax months. They may cover a maximum of six tax months provided all those months fall in the same tax year. A tax month begins on the sixth of one calendar month and ends on the fifth of the following calendar month Managers must hold tax vouchers for all amounts included in the claim Interim claim forms include provision for PEP or ISA managers to pay back amounts claimed and received from SSO that are found not to be due in respect of subscription(s) made void (paragraphs and 12.29), or payments made after the death of the investor (paragraph 12.10) The PEP 10 interim claim form includes provision for PEP managers to account for deductions for tax on interest paid on cash on deposit where the amount withdrawn by the investor was in excess of 180 (paragraph 10.28), and where it was credited to a PEP after the date of death of the investor (paragraph 12.21) The ISA 10 interim claim form includes provision for ISA managers to account for the flat rate charge on interest paid on cash on deposit in the stocks and shares component, and tax at the lower rate (or, before 6 April 2005, the basic rate), on chargeable events in respect of ISA insurance policies (paragraph 9.41) SSO will not pay a PEP 10 or ISA 10 interim claim where any return has not been completed by the due date. 04/

7 Chapter 13 Annual returns and claims For interim claims on PEP 10 this means SSO will not pay an interim claim after 5 th July unless they have received an annual return of statistical information for the previous tax year (paragraph 15.11), and a return of information for the previous tax year (paragraph 14.21), and after 5 th October unless they have received a fully completed annual return and claim on form PEP 14 for the previous tax year (paragraph 13.34) For interim claims on ISA 10 this means SSO will not pay an interim claim after 5 th May unless they have received a quarterly return of statistical information for the quarter ended 5 th April (paragraph 16.10) after 4 th June unless they have received an annual return of statistical information for the previous tax year (paragraph 15.11), and a return of information for the previous tax year (paragraph 14.21) after 5 th August unless they have received a quarterly return of statistical information for the quarter ended 5 th July (paragraph 16.10) after 5 th October unless they have received a fully completed annual return and claim on form ISA 14 for the previous tax year (paragraph 13.34) after 5 th November unless they have received a quarterly return of statistical information for the quarter ended 5 th October (paragraph 16.10) after 5 th February unless they have received a quarterly return of statistical information for the quarter ended 5 th January (paragraph 16.10) SSO will not, normally, pay interim claims of less than Where SSO is not satisfied with a claim they will pay any lower amount which they estimate is due. There is no right of appeal against a decision on an interim claim Where, as a result of making an interim claim, there is a net amount due to HMRC, the manager should send a cheque for the amount due, with the form PEP 10 or ISA 10, to SSO Services Team 1. Cheques should be made payable to HMRC and crossed A/C Payee Where a manager receives a tax voucher late, he should, in strictness, make a claim for the tax month in which the payment date fell (or a supplementary interim claim if he has already made an interim claim for that tax month see paragraph 13.24a). However, a claim for tax in respect of such a payment may be included in the manager s next interim claim provided the period of the claim, that is, from the 6 th of the month in which the payment was made to the 5 th of the month of the next claim, does not exceed six months and 04/

8 Chapter 13 Annual returns and claims the date of the payment does not fall in a previous tax year (see paragraph 13.24), and the manager keeps a record of such cases for reconciliation purposes which should be made available on request to HMRC auditors If the date of the payment falls in a previous tax year the manager should include the payment in the annual return and claim for the tax year in which the payment fell a Managers may make a supplementary interim claim at any time within the tax year if it is discovered that the original claim contained an error or mistake b Completing form ISA 10 ISA Manager reference Managers should enter their ISA reference number allocated to them by SSO. This will always be a Z followed by 4 numeric characters. Name of ISA Manager Managers should enter the legal name under which they have received approval. The manager s trading name(s) must not be entered. Name of ISA Scheme Enter the name of the scheme if this is different to the Manager named above. Period of Claim This will normally be a tax month beginning on the sixth of one calendar month and ending on the fifth of the following calendar month. However the period of claim can be for up to 6 tax months. Part 1 - Amount claimed In Box A, enter the amount of tax deducted from interest arising on investments held in ISA accounts. Part 2 - Amounts payable In Box B, enter the total of any amounts previously claimed and subsequently found not to be due. For example sums arising in respect of void subscriptions or where payment occurred after the death of the investor. In Box C, enter details of tax deducted at the lower rate from chargeable events. Full details are set out at paragraph In Box D, enter the flat rate charge due on interest paid on cash on deposit. Full details are set out at paragraph /

9 Chapter 13 Annual returns and claims Part 3 - Reconciliation Managers should enter the final amount claimed in Box F (this is the tax claimed in Box A less any tax adjustments in Box E). Where the net result is that the manager still owes monies to HMRC, complete box G and attach a cheque made payable to "HMRC" to the claim. Certificate - Authorised signatory The form ISA10 must be signed by an authorised signatory. This must be one of the persons already notified to SSO (see paragraph 13.8) c Completing form PEP 10 PEP Manager reference Managers should enter their PEP reference number allocated to them by SSO. This will always be a letter followed by 4 numeric characters. Name of PEP Manager Managers should enter the legal name under which they have received approval. The manager s trading name(s) must not be entered. Name of PEP Scheme Enter the name of the scheme if this is different to the Manager named above. Period of Claim This will normally be a tax month beginning on the sixth of one calendar month and ending on the fifth of the following calendar month. However the period of claim can be for up to 6 tax months. Part 1 - Amount claimed In Box A, enter the amount of tax deducted from interest arising on investments held in PEP accounts. Part 2 - Amounts payable In Box B, enter the total of any amounts previously claimed and subsequently found not to be due. For example sums arising in respect of void subscriptions or where payment occurred after the death of the investor. In Box C, enter details of the tax deducted on withdrawals of interest arising on cash on deposit. Full details are set out at paragraph Part 3 - Reconciliation Managers should enter the final amount claimed in Box E (this is the tax claimed in Box A less any tax adjustments in Box D). Where the net result is that the manager still owes monies to HMRC, complete box F and attach a cheque made payable to "HMRC" to the claim. 04/

10 Chapter 13 Annual returns and claims Certificate - Authorised signatory The form PEP10 must be signed by an authorised signatory. This must be one of the persons already notified to SSO (see paragraph 13.8). Annual returns and claim - forms PEP 14 and ISA Managers should make annual returns and claims on form PEP 14 or ISA 14. These forms are available on the HMRC website at and can be downloaded as needed. Paper copies will not be provided. Managers must return fully completed forms to SSO by the following 5 th October Beginning with the tax year ended 5 th April 2006, the annual return and claim need not be certified by the manager's external auditor The annual return and claim relates to income with a payment date falling in the previous tax year ending on 5 th April. It is therefore a consolidated claim covering any interim claims made for that tax year Blank Annual return and claim forms include provision for managers to pay back amounts claimed and received from SSO which are found not to be due in respect of subscription(s) made void (paragraphs and 12.29), or where payment was made after the death of the investor (paragraph 12.10) The PEP 14 annual return and claims form includes provision for PEP managers to account for deductions for tax on interest paid on cash on deposit where the amount withdrawn by the investor was in excess of 180 (paragraph 12.29), and where it was credited to a PEP after the date of death of the investor (paragraph 12.18) The ISA 14 annual return and claims form includes provision for ISA managers to account for the flat rate charge on interest paid on cash on deposit in the stocks and shares component, and tax at the lower rate (or, before 6 April 2005, the basic rate), on chargeable events in respect of ISA insurance policies (paragraph 9.41) Where an annual claim exceeds the amounts paid on interim claims for that tax year and SSO is satisfied with the claim, they will pay the balance on the 17 th (for the ISA 14) or the 21 st (for the PEP 14) of the month following the month in which the annual return and claim form is received. 04/

11 Chapter 13 Annual returns and claims If, on the other hand, the amounts already paid on interim claims exceed the amount shown on an annual return and claim, the manager should send a cheque for the amount due, with the form PEP 14 or ISA 14, to SSO Services Team 1. Cheques should be made payable to HMRC and crossed A/C Payee If the annual return and claim on form PEP 14 or ISA 14 is not received by 5 th October following its issue no further interim claims will be paid until the PEP 14 or ISA 14 is fully completed and received by SSO and SSO will review the payments made for the tax year for which the form PEP 14 or ISA 14 is outstanding and will issue a notice showing the payments made and any lower amount which they consider ought to have been made. If the form PEP 14 or ISA 14 is not received within 14 days after the issue of the notice, the amount shown in the notice will become immediately recoverable by the Collector of Taxes HMRC may withdraw approval from the manager where an annual return and claim on form PEP 14 or ISA 14 is not made If a manager does not manage any PEPs or ISAs in a particular tax year, a NIL return and claim is required Managers may make supplementary annual returns and claims at any time within six years after the end of a tax year if it is discovered that the original return and claim contained an error or mistake a Completing form ISA 14 Statement of income Stocks and shares component Dividend distributions enter the amount of dividend distributions with a payment date during the tax year. Do not include equalisation in respect of group 2 units received from an authorised unit trust or fund of funds. Interest distributions - enter the gross amount of interest received (other than interest on cash on deposit). Interest on cash on deposit - where interest has been paid or credited to an ISA on cash on deposit, ISA managers should enter the gross amount. 04/

12 Chapter 13 Annual Returns and Claims Cash component Interest distributions - enter the gross amount of interest received (other than interest on cash on deposit). This will include distributions from money market funds and fund of funds that are qualifying investments for the cash component. Interest on cash on deposit - enter the gross amount of interest received. This will include interest on cash on deposit held in a share account with a building society, interest on cash deposits held with a bank and interest on National Savings & Investments deposits. Bonuses enter the total bonus received. ISA Manager reference Managers should enter their PEP reference number allocated to them by SSO. This will always be a Z followed by 4 numeric characters. Name of ISA Manager Managers should enter the legal name under which they have received approval. The manager s trading name(s) must not be entered. Period of Claim This will be the tax year beginning on 6 th April in one year and ending on 5 th April of the following year. However, the period of claim may be shorter where the manager is only approved part way through a tax year. In that event the period of the first annual claim will be from the date of approval to the following 5 th April. Part 1 - Amount claimed Managers should enter the amount of tax deducted from interest arising on investments held in ISA accounts In Box A, Part 2 - Amounts payable In Box B, enter the total of any amounts previously claimed and subsequently found not to be due. For example sums arising in respect of void subscriptions or where payment occurred after the death of the investor. In Box C, enter the flat rate charge due on interest paid on cash on deposit (see paragraph 7.50). In Box D, enter details of tax deducted at the lower rate on chargeable events (see paragraph 9.36). Part 3 - Reconciliation Managers should enter the net amount claimed in Box F (this is the tax claimed in Box A less any tax adjustments in Box E). Where the net result is that there is a sum payable, complete box G. 04/

13 Chapter 13 Annual Returns and Claims Part 4 - Net amount from interim claims made Enter the amount of monies previously claimed on all interim claims made for the tax year. If no interim claims have been previously submitted, managers should enter "NIL" in Box H. Where the manager has already paid previously overclaimed amounts to HMRC in interim claim(s) made during the tax year, the total amount paid should be entered in Box J. Part 5 - Total amount for year Enter in Box K the total amount of monies that are being claimed for the tax year. Where monies are due to HMRC, the amount should be entered at Box L Certificate - Authorised signatory The form PEP14 must be signed by an authorised signatory. This must be one of the persons already notified to SSO (see paragraph 13.8) b Completing form PEP 14 Statement of income Dividend distributions enter the amount of dividend distributions with a payment date during the tax year. Do not include equalisation in respect of group 2 units received from an authorised unit trust or fund of funds. Interest distributions - enter the gross amount of interest received (other than interest on cash on deposit). Interest on cash on deposit - where interest has been paid or credited to an ISA on cash on deposit, ISA managers should enter the gross amount. PEP Manager reference Managers should enter their PEP reference number allocated to them by SSO. This will always be a letter followed by 4 numeric characters. Name of PEP Manager Managers should enter the legal name under which they have received approval. The manager s trading name(s) must not be entered. Period of Claim This will be the tax year beginning on 6 th April in one year and ending on 5 th April of the following year. However, the period of claim may be shorter where the manager is only approved part way through a tax year. In that event the period of the first annual claim will be from the date of approval to the following 5 th April. Part 1 - Amount claimed Managers should enter the amount of tax deducted from interest arising on investments held in PEP accounts In Box A, 04/

14 Chapter 13 Annual Returns and Claims Part 2 - Amounts payable In Box B, enter the total of any amounts previously claimed and subsequently found not to be due. For example sums arising in respect of void subscriptions or where payment occurred after the death of the investor. Part 3 - Reconciliation Managers should enter the net amount claimed in Box C (this is the tax claimed in Box A less any tax adjustments in Box B). Where the net result is that there is a sum payable, complete box D. Part 4 - Net amount from interim claims made Enter the amount of monies previously claimed on all interim claims made for the tax year. If no interim claims have been previously submitted, managers should enter "NIL" in Box E. Where the manager has already paid previously overclaimed amounts to HMRC in interim claim(s) made during the tax year, the total amount paid should be entered in Box F. Part 5 - Total amount for year Enter in Box G the total amount of monies that are being claimed for the tax year. Where monies are due to HMRC, the amount should be entered at Box H Certificate - Authorised signatory The form PEP14 must be signed by an authorised signatory. This must be one of the persons already notified to SSO (see paragraph 13.8). Assessments and recovery of tax and charges Where amounts claimed or deductions made cannot be recovered from the next claim, SSO will normally issue an informal notice advising the manager of the amount payable and telling the manager how to pay the amount due Where amounts claimed or deductions made cannot be recovered informally, SSO will make assessments on the manager. Change in rate of tax credit and basic rate of tax If there is a change in the basic rate of tax, the amount shown on the tax voucher may be incorrect. A change in the rate of tax during a tax year may affect claims already made for that year. In these circumstances SSO will advise all managers of what action to take. Repayment of foreign tax Managers may only claim United Kingdom income tax from SSO. They must make their own arrangements to make claims from foreign fiscal agencies under Double Taxation Agreements. 04/

15 Chapter 13 Annual Returns and Claims Claim forms are available from HM Revenue & Customs Residency Fitz Roy House PO Box 46 Nottingham NG2 1BD The telephone number is if calling in the UK, or if calling from outside the UK The fax number is The address is Managers should bear in mind that if it is a requirement of the double taxation agreement that the income is subject to tax in the UK, no repayment may be claimed. 04/

16 Chapter 14 Returns of Information CHAPTER 14 RETURNS OF INFORMATION The requirement to make a return 14.1 to 14.2 What period must be covered? 14.3 What must be returned? 14.4 to 14.5 How to make returns of information 14.6 Magnetic media 14.7 to 14.9 Forms PEPCOM100(Z) and ISACOM100(OCR) How to complete forms PEPCOM100(Z) and ISACOM100(OCR) to PEPCOM100(Z) entries ISACOM100(OCR) entries Submission of returns to Penalties /

17 Chapter 14 Returns of Information The requirement to make a return 14.1 Managers are required to make a return of information (one for PEPs and one for ISAs if the manager operates both schemes) to HMRC within 60 days (ISA) or 3 months (PEP) of the following reporting dates 5 th April of each year (ISA returns will therefore need to be made by 4 th June, and PEP returns by 5 th July), or the date of ceasing to qualify, or act, as a manager At the end of February of the tax year in which the return is due, HMRC will send managers a reminder of their obligations to make a return for that tax year. What period must be covered? 14.3 The information required is for the period from the date the manager began to manage PEPs or ISAs, or the last reporting date whichever is the later. What must be returned? 14.4 PEP managers should report details for all PEPs they managed at the reporting date (usually 5 th April) ISA managers must report details for all ISAs they managed during the return period, including ISAs transferred in, and ISAs that have been closed. But they should exclude details of ISAs transferred out in full, made void, or not proceeded with or cancelled within 30 days of opening (paragraphs 5.5 and 5.6) in the return period. How to make returns of information 14.6 Returns of information can be submitted on magnetic media, and/or forms PEPCOM100(Z) or ISACOM100(OCR). Magnetic media 14.7 HMRC prefer the return of information to be submitted on magnetic media Returns on magnetic media must conform to the PEP or ISA Magnetic Media Specification. Copies are available on the HMRC website at and should be downloaded as required The telephone number for ordering forms PEPCOM100(Z) and ISACOM100(OCR) is assistance is available from, and magnetic media returns can be sent for testing to, 04/

18 Chapter 14 Returns of Information Magnetic media returns can be sent for testing to HM Revenue & Customs Centre for Research & Intelligence Data Capture Unit Ty Glas Road Llanishen Cardiff CF14 5ZG Forms PEPCOM100(Z) and ISACOM100(OCR) PEP managers should use a form PEPCOM100(Z), and ISA managers should use a form ISACOM100(OCR), to return details of each ISA and PEP which is not included on a return made on magnetic media. They should submit the completed forms along with the return made on magnetic media Examples of forms PEPCOM100(Z) and ISACOM100(OCR) can be viewed on the HMRC website at To order stocks, phone the HMRC telephone orderline on How to complete forms PEPCOM100(Z) and ISACOM100(OCR) Forms PEPCOM100(Z) and ISACOM100(OCR) may be completed by hand, or by typewriter/computer font. But these two methods must not be combined Allowable characters to use are Typewriter/ Computer Font Handwritten The alphabet (upper case) A to Z The alphabet (lower case) a to z x Space Numbers 0 to 9 Oblique / x Hyphen - x Ampersand & x Full stop. x Apostrophe x Comma, x Left-hand parenthesis ( x Right-hand parenthesis ) x The following characters must not be used: Asterisk * Semi-colon ; Vertical bar Where the forms are completed by hand, they must be completed in black ink and capital letters Boxes must be completed from the left and unused boxes left blank. 04/

19 Chapter 14 Returns of Information All monetary amounts should be returned in pounds. Amounts subscribed and market values should be rounded up to the nearest pound. For example, should be reported as Previously, PEP managers were asked to report amounts rounded down. They may continue to report in this way if they wish to avoid changing their systems. Manager reference This is the number provided to managers by HMRC for the purposes of submitting returns of information. The manager reference number is made up using a character in the range A-Z followed by four digits. For ISA managers this will be the reference allocated by SSO. For PEP managers this will be zero, followed by the three digit reference allocated by SSO, and two characters which is the sub-return number. The sub-return number is used to identify each return where PEPs or ISAs are held in different formats, on different systems or in different media. Where managers supply returns wholly on forms PEPCOM100(Z) or ISACOM100(OCR) then the final two characters will be 01. For Example A PEP reference number will be in the format A0999/01. An ISA reference number will be in the format Z9999/01. Tax year ending in This is the tax year in which the reporting date falls. The entry should always be the year in which the tax year ends. For example, for a return to 5 th April 2006 the entry should be 2006, and if an ISA manager ceases to manage ISAs on 1 st September 2005, the entry should still be Investor information Where an application to subscribe was made on behalf of a physically or mentally incapacitated investor the manager should report the investor s details, and not those of the person who made the application (paragraph 5.24). Account number Managers should enter the number they have allocated to the PEP or ISA. Forename Managers should enter the forename and middle initials of the investor, leaving a space between the forename and each initial. National insurance number (NINO) 04/

20 Chapter 14 Returns of Information This should be in the format AB123456C. The final character, which will always be A, B, C or D, is not critical and managers may omit it if not known. If the investor does not have a NINO, this entry should be left blank unless the manager s system requires the capture of a NINO, in which case the universal dummy NINO XX999999X should be used. Managers must not use any other dummy or substitute NINO. Address Managers should enter the full residential address of the investor, including the post code. If, exceptionally, the investor s current permanent residential address is not known, managers should report the last known address. Care of or other correspondence addresses are not permitted. But where the address is a retirement home, nursing home, hospice or hospital, this address can be used. BFPO addresses can also be used. See paragraph 5.11a for information about investors who do not have a permanent residential address. Date of birth This should be reported in the format DDMMCCYY. For example: The date of birth of an investor born on 3 rd June 1932 should be reported as If only the year of birth of the investor is known (paragraph 5.10) ISA managers should report PEPCOM100(Z) entries The following guidance applies to completion of the PEPCOM100(Z). See paragraph for completion of the ISACOM(100)(OCR). Market value PEP managers should report the aggregate market value (paragraph 10.20) at 5 th April in the year of return, or any other date in that year, not falling earlier than 5 October in the year of return of all assets (including cash) held in each PEP. ISACOM100(OCR) entries The following guidance applies to completion of the ISACOM100(OCR). See paragraph for completion of the PEPCOM(100)(Z). Type of ISA Where there has been a subscription in the year (but see below for current year subscriptions transferred out), ISA managers must enter A for a maxi ISA, or B for a mini ISA. 04/

21 Chapter 14 Returns of Information Where there have been no subscriptions in the year, or the current year subscriptions have been transferred out (paragraph 11.22) in the year, ISA managers must enter X. Amount subscribed Where there have been no subscriptions in the tax year or the current year subscriptions have been transferred to another ISA manager, ISA managers should enter 0. These are the only circumstances in which these boxes should show 0. ISA managers should include the amount subscribed in the year to any previous ISA manager(s). This will be notified to the new ISA manager by the old ISA manager. ISA managers should not show any other value transfer as a subscription. Amount subscribed to the stocks and shares component ISA managers should report the total subscriptions to the stocks and shares component during the return period made up of the total amount of cash subscribed, and the aggregate market value at the date of transfer of any shares transferred to the ISA manager or his nominee from an approved all-employee savings-related share option, profit-sharing scheme or employee share ownership plans. Current year subscriptions transferred to another ISA manager must not be included. Amount subscribed to the cash component ISA managers should report the total subscriptions made to the cash component during the return period. Current year subscriptions transferred to another ISA manager must not be included. Amount subscribed to insurance policies in either component ISA managers should report the total subscriptions made to insurance whether in the stocks and shares or cash component - during the return period. The figure entered for insurance subscriptions will also be included in the entry made to the Amount subscribed to stocks and shares (or cash) component. For Example 35a The ISACOM 100(OCR) needs to be completed to show subscriptions to the stocks and shares component amounting to 6000 of which 1500 were subscriptions to an insurance policy. The entries will be Amount subscribed to stocks and shares component 6000 Amount subscribed to insurance in either component 1500 Total /

22 Chapter 14 Returns of Information Subscriptions are made to a maxi ISA that includes both stocks and shares and cash components. Insurance policies are included in both components. Total subscriptions to the stocks and shares component were 4000 (of which 1000 was used to purchase insurance) and total subscriptions to the cash component were 3000 (of which 500 was used to purchase insurance). The entries on the ISACOM 100 (OCR) would be Amount subscribed to stocks and shares component 4000 Amount subscribed to cash component 3000 Amount subscribed to insurance in either component 1500 Total 7000 Total amount subscribed ISA managers must report the total subscriptions made during the return period. This will be the total of subscriptions entered in the boxes for the stocks and shares component and cash component. Date of first subscription ISA managers should enter the date the first subscription was made to the ISA in the return period. Share scheme transfers This is the market value (included in the amount subscribed to the stocks and shares component) on the date of transfer, of any shares transferred from an approved all-employee savings-related share option, profit-sharing scheme employee share ownership plans. If no such transfer was made to the stocks and shares component this box should be left blank. Market value Where a component is not part of an ISA, or the ISA is closed the amount shown should be 0. ISA managers should report the aggregate market value (paragraphs 10.20) of all assets (including cash) held in either the stocks and shares or cash component at 5 th April in the year of return, or any other date in that year, not falling earlier than 5 October in the year of return A separate entry is needed for the value of insurance policies held in either component. The figure for insurance will be included in the figure for stocks and shares or cash as appropriate. For policies of insurance the surrender value of the policies should be reported. 04/

23 Chapter 14 Returns of Information For Example The ISACOM 100(OCR) needs to be completed to show the market value of the component being reported and in addition the market value of insurance products within that component. If the market value of a cash component was 2500 and this includes insurance products with a market value of 1200, the entries would be Amount subscribed to stocks and shares component 2500 Amount subscribed to insurance in either component 1200 Submission of returns HMRC will send a submission document and labels to managers shortly before the return is due. Instructions on the submission of returns are included in the Magnetic Media Specification Managers should submit their returns of information to HMRC Centre for Revenue Intelligence DATA MATCHING UNIT Ground Floor Ty Glas Road Llanishen Cardiff CF14 5ZG. The telephone numbers are and ISA managers who fail to submit their returns of information by 4 th June, and PEP managers who fail to submit their returns by 5 th July, will be sent a reminder. No claims for payment will be processed until the return is submitted. Penalties Penalties may be charged on managers under Section 98 Taxes Management Act 1970 for failure to make a return or for making an incorrect return. 04/

24 Chapter 15 PEP and ISA Annual Returns of Statistical Information CHAPTER 15 PEP and ISA ANNUAL RETURNS OF STATISTICAL INFORMATION The requirement to make a return 15.1 What period must be covered? 15.2 to 15.3 What must be returned? 15.4 to 15.5 How to make annual returns of statistical information 15.6 How to complete forms PEP14(Stats) and ISA14(Stats) 15.7 PEPs and ISA stocks and shares component 15.8 Cash component 15.9 Submission of annual returns of statistical information Penalties /

25 Chapter 15 PEP and ISA Annual Returns of Statistical Information The requirement to make a return 15.1 ISA managers are required to make an annual return of statistical information to the HM Revenue & Customs within 60 days, and PEP managers within 3 months, of the following reporting dates 5 th April of each year, or the date of ceasing to qualify, or act, as a manager. What period must be covered? 15.2 The information required is for the period from the date the manager began to manage PEPs or ISAs, or the last reporting date whichever is the later Managers must report details of all PEPs and ISAs held by them at the reporting date. What must be returned? 15.4 Managers must return in relation to all PEPs, or the stocks and shares components of all ISAs, the aggregate market value of investments under their management, together with separate figures for - qualifying shares - qualifying securities - gilts - units in qualifying authorised unit trusts - shares in qualifying open-ended investment companies - shares in, or securities of, qualifying investment trusts - units and shares in relevant UCITS - the surrender value of qualifying policies of life insurance - cash, and - the total aggregate market value of all investments held in the stocks and shares component. in relation to the cash components of all ISAs, the aggregate market value of investments under their management, together with separate figures for - units in money market funds 04/

26 Chapter 15 PEP and ISA Annual Returns of Statistical Information - units in qualifying funds of funds - the surrender value of qualifying policies of life insurance - cash, including cash in share and deposit accounts - other investments (these will be investments that fail the 5% test see paragraph 7.39 other than insurance), and - the total aggregate market value of all investments held in the cash component. Any investment represented by Depository Interests should be included in the category representing the underlying investment. For example, the market value of a DI representing qualifying shares should be included in the total for qualifying shares All valuations must relate to the value at 5 th April in the year of return. How to make annual returns of statistical information 15.6 Forms PEP14(Stats) or ISA14(Stats) are available on the HMRC website at and should be downloaded as required. How to complete forms PEP14(Stats) and ISA14(Stats) 15.7 All boxes must be completed from the left and unused boxes left blank. Box 1 Manager reference Enter the reference allocated by SSO. Box 2 Manager name Enter full name of manager. Box 3 Year Enter the tax year in which the end of the return period falls. For example, for a return made for the year ended 5 th April 2007, the entry should be "2007". PEPs and ISA stocks and shares component 15.8 All values must be entered rounded up the nearest pound. For market values see paragraph Box 4 Qualifying shares Enter the total market value of all investments held under management at 5 th April categorised as qualifying shares (paragraph 7.4). Include the market value of shares transferred in from an all-employee savingsrelated share option, profit sharing scheme or employee share ownership plans (other than investment trust shares) (paragraph 7.41). 04/

27 Chapter 15 PEP and ISA Annual Returns of Statistical Information Box 5 Qualifying securities (including securities of investment trusts) Enter the total market value of all investments held under management at 5 th April categorised as qualifying securities (paragraph 7.8). Box 6 Government Securities Enter the total market value of all investments held under management at 5 th April categorised as government securities (paragraph 7.17). Box 7 - Units in qualifying authorised unit trusts (including funds of funds) Enter the total market value of all investments held under management at 5 th April categorised as units in qualifying unit trusts (paragraph 7.19). Include investments in UK UCITS and UK NURS (see paragraph 7.27b) that are authorised unit trusts. Box 8 - Shares in qualifying open-ended investment companies Enter the total market value of all investments held under management at 5 th April categorised as shares in qualifying open-ended investment companies (paragraph 7.28). Include investments in UK UCITS and UK NURS (see paragraph 7.27b) that are open-ended investment companies. Box 9 - Shares in qualifying investment trusts Enter the total market value of all investments held under management at 5 th April categorised as shares in qualifying investment trusts"(paragraph 7.29). Include the market value of investment trust shares transferred in from an allemployee savings-related share option, profit sharing scheme or employee share ownership plans (paragraph 7.39). Box 10 - Units and shares in relevant UCITS Enter the total market value of all investments held under management at 5 th April categorised as units and shares in relevant UCITS (paragraph 7.33 & 7.35). Include investments held in non-uk NURS (see paragraph 7.27b). Box 11 (ISA 14 Stats) Surrender value of policies of life insurance Enter the surrender value of all policies of life insurance held under management at 5 th April. Box 11 (PEP 14 Stats) and Box 12 (ISA 14 Stats) Cash on deposit Enter the total cash balance at 5 th April of all cash held on deposit in a PEP or ISA stocks and shares component (paragraph 7.47). Box 12 (PEP 14 Stats) and Box 13 (ISA 14 Stats) Total Enter the sum of boxes 4 to 12 (ISA 14 Stats) and 4 to 11 (PEP 14 Stats). Box 13 (PEP 14 Stats) Total number of investors with plans open at 5 th April Enter the total number of investors 04/

28 Chapter 15 PEP and ISA Annual Returns of Statistical Information ISA cash component (ISA14(Stats) only) 15.9 All values must be entered rounded up the nearest pound. For market values see paragraph Blank. Box 14 - Units in money market funds Enter the total market value of all investments held under management at 5 th April categorised as units in money market funds (paragraph 8.1). Box 15 - Units in qualifying funds of funds for the cash component Enter the total market value of all investments held under management at 5 th April categorised as units in qualifying funds of funds for the cash component (paragraph 8.1). Box 16 Surrender value of policies of life insurance Enter the surrender value of all ISA policies held under management at 5 th April. Box 17 Other investment products Enter the value of investments that have failed the 5% test at paragraph 7.39 (other than insurance) that are held in the cash component. Box 18 - Other cash (including cash in share and deposit accounts) Enter the total cash balance at 5 th April of all other cash held in deposit accounts and building society share accounts in the cash component (paragraph 8.1). Box 19 Total Enter the sum of boxes 14 to 18. Submission of annual returns of statistical information Managers who fail to submit their returns of information by 4 th June (ISAs) or 5 th July (PEPs) will be sent a reminder. No claims for payment made after this date will be processed by SSO until the return is submitted. Penalties Penalties may be charged on managers under Section 98 Taxes Management Act 1970 for failure to make a return or for making an incorrect return. 04/

29 Chapter 16 ISA Quarterly Returns of Information CHAPTER 16 ISA QUARTERLY RETURNS OF STATISTICAL INFORMATION The requirement to make a return 16.1 to 16.2 What period must be covered? 16.3 to 16.4 What must be returned? 16.5 to 16.7 How to make quarterly returns of statistical information form ISA25(stats) 16.8 How to complete ISA25(Stats) 16.9 Submission of quarterly returns of statistical information to Penalties to 6.12a 04/

30 Chapter 16 ISA Quarterly Returns of Information The requirement to make a return 16.1 ISA managers are required to make a quarterly return of statistical information to SSO within one month of each reporting date. The reporting dates are 5 th July 5 th October 5 th January, and 5 th April of each tax year A quarterly return is also required within one month of an ISA manager ceasing to qualify, or act, as an ISA manager. What period must be covered? 16.3 The information required is for the period from the date the ISA manager began to manage ISAs, or 6 th April in the tax year whichever is the later. Returns must include cumulative information within a tax year Where ISA managers manage ISAs on 6 April in the tax year, the period covered will be 3 months to 5 th July 6 months to 5 th October 9 months to 5 th January, and the year to 5 th April. What must be returned? 16.5 ISA managers must report details for all ISAs open at the reporting date to which subscriptions have been made during the return period. They should include ISAs transferred in during the return period. However, they should exclude ISAs closed, made void, or not proceeded with or cancelled within 30 days of opening (paragraphs 5.5 and 5.6) in the return period, and ISAs whose current year subscriptions were transferred out in the return period. 04/