HMRC Draft Regulations & Guidance

Transcription

1 Technical Bulletin 756 HMRC Draft Regulations & Guidance HMRC ISA Bulletin 64 HMRC has issued an ISA Bulletin which includes Draft ISA Regulations (additional permitted subscriptions for spouse/civil partner of deceased ISA investor) Draft ISA Guidance (additional permitted subscriptions for spouse/civil partner of deceased ISA investor) Draft CTF & ISA Guidance (CTF to JISA transfers) HMRC are inviting comments to on all three documents by Friday 20 February Members are requested to copy any comments they may have to TISA at Unfortunately the gov.uk website has not been updated with ISA Bulletins since July 2014, however the full HMRC Bulletin 64 with attachments is included in the PDF download of this TISA bulletin from 21 January 2015 Page 1 of 1 No responsibility can be accepted, by the author or TISA, for loss occasioned to any person acting or refraining from action as a result of material in this document. It is intended for circulation only within member firms and under no circumstances should it be circulated more widely in the industry or to the public without the express written permission of TISA. Registered Address: TISA, Dakota House, 25 Falcon Court, Preston Farm Business Park, STOCKTON-ON-TEES, TS18 3TX

2 Savings Schemes Office ISA Bulletin Number January 2015 The ISA Bulletin keeps ISA managers informed of any new developments relating to the ISA scheme. Please ensure the appropriate people in your organisation read it. We suggest that you keep Bulletins at the front of your copy of the Guidance Notes for ISA Managers. This Bulletin contains articles on Additional allowance for the spouse/civil partner of a deceased ISA investor Draft Guidance CTF to Junior ISA transfers Enquiries on this bulletin should be addressed to savings.audit@hmrc.gsi.gov.uk

3 Additional permitted subscriptions for the spouse/civil partner of a deceased ISA investor ISA Bulletin 63 provided some information to managers about the announcement made by the Chancellor in his Autumn Statement. Attached to this bulletin are draft regulations that will implement the changes and a draft chapter that will be included in the ISA Guidance Notes. Comments on the draft regulations or the Guidance should be made by 20 February 2015 using the address on page 1 of this Bulletin. Draft Guidance CTF to Junior ISA transfers We would like to record our thanks to those who commented on the draft regulations issued with Bulletin 62. We are still working towards an implementation date of April The attached draft Guidance (which will be included in both the CTF and ISA Guidance Notes) sets out the proposed transfer process. If you have any comments can you please send them to the address on page 1 by 20 February 2015.

4 S T A T U T O R Y I N S T R U M E N T S 2015 No. *** INCOME TAX CAPITAL GAINS TAX The Individual Savings Account (Amendment) Regulations 2015 Made *** Laid before the House of Commons *** Coming into force - - *** The Treasury make these Regulations exercising the powers in sections 694 to 699 and 701 of the Income Tax (Trading and Other Income) Act 2005(a) and section 151 of the Taxation of Chargeable Gains Act 1992(b). Citation and commencement 1. These Regulations may be cited as the Individual Saving Account (Amendment) Regulations 2015 and come into force on ***. Amendment of the Individual Savings Account Regulations The Individual Savings Account Regulations 1998(c) are amended as follows. 3. In regulation 2(1)(a), after the entry CTA 2010 insert deceased s account is an account which the deceased held with an account manager at the date of the deceased s death;. 4. In regulation 2D after 5B, insert 5DDA,. 5. In regulation 4(1B)(d) after regulation insert 5DDA(4) and. 6. In regulation 5D (a) 2005 c. 5; amendments made by the Commissioners for Revenue and Customs Act 2005 (c. 11), Schedule 4, paragraph 132; the Finance Act 2008 (c. 9), section 40; the Finance Act 2011 (c. 11), section 40. (b) 1992 c. 12; amendments made by the Finance Act 1993 (c. 34), section 85; the Finance Act 1995 (c. 4), section 64(2); the Income Tax (Taxation of Trading and Other Income) Act 2005, Schedule 1, paragraph 426; the Finance Act 2011, section 40(6). (c) S.I.1998/1870; relevant amending instruments S.I.2000/2079; S.I.2000/3112; S.I.2001/908; S.I. 2001/3269; S.I.2001/3778; S.I.2002/1409; S.I.2002/3158; S.I. 2005/3350; S.I. 2005/3230; S.I.2009/1994; S.I.2012/1871; S.I. 2013/605; S.I. 2013/1743.

5 (a) at the end of paragraph (2)(a)(ii) omit or ; (b) at the end of paragraph (2)(a)(iii) substitute or for and ; (c) after paragraph (2)(a)(iii), insert (iv) permitted in accordance with regulation 5DDA; and ; (d) at the end of paragraph(2)(b), substitute a semicolon for the full stop and insert and (c) in a case within sub-paragraph (a)(iv), the account manager of the account to which the subscription is made is provided with the declarations required by 5DDA as relevant to the subscription.. 7. After regulation 5DD, insert Additional permitted subscription to an account other than a junior ISA account 5DDA. (1) A subscription to an account other than a junior ISA account is permitted by this regulation if (a) it is made in the circumstances described in paragraph (2); and (b) the amount of the subscription, or the aggregate of a number of such subscriptions, does not exceed in value the amount determined in accordance with paragraph (3). (2) The circumstances are (a) an account investor dies on or after 3 December 2014 leaving a surviving spouse or civil partner (S); (b) the subscription is made by S to an account held by S; (c) subject to paragraph (7), the account is managed by the account manager who managed the deceased s account; (d) the subscription is made within the permitted period; (e) S and the deceased were living together at the date of the deceased s death(a); and (f) where the subscription comprises non-cash assets (3) The amount is (i) the deceased held an account either comprising or including non-cash assets at the date of the deceased s death; (ii) S inherits all or part of those assets; (iii) S makes a subscription comprising those assets or any part thereof; and (iv) immediately before that subscription, title to those assets is vested, and has continuously since the deceased s death been vested, in the account manager or his nominee or jointly in one of them and another. (a) where the deceased held a single account with an account manager, then the value of that account at the date of the deceased s death; or (b) where the deceased held more than one account with an account manager, then the combined value of those accounts at the date of the deceased s death. (4) For the purposes of a subscription made under paragraph 2(f) (a) non-cash assets means (i) those investments specified in regulation 7, other than those in paragraph (2)(j); and (ii) those investments specified in regulation 8(2)(f), (h), (p) or (q); and (a) section 1011 of the Income Tax Act 2007(c.3), provides that, for the purposes of the Income Tax Acts, individuals who are married or in a civil partnership are treated as living together unless they are separated (a) by a court order, (b) by a deed of separation, or (c) as a matter of fact in circumstances in which the separation is likely to be permanent. 2

6 (b) the value of a subscription comprising non-cash assets made pursuant to paragraph (2) is the value of the assets at the date of the subscription. (5) In this regulation, the permitted period means (a) in the case of a subscription comprising non-cash assets made in accordance with paragraph (2), the period beginning with distribution to S by the deceased s estate of the non-cash assets and ending no more than 180 days thereafter; (b) in the case of any other subscription under this regulation, the period beginning with the date of the deceased s death and ending either (i) no more than 3 years thereafter; or (ii) no more than 180 days after administration of the estate is complete; which ever is the later. (6) Where the deceased died in the period beginning with 3 December 2014 and ending on 5 April 2015, the deceased is treated as dying on 6 April 2015 for the purposes of regulation 5DDA(5)(b). (7) The requirement in paragraph (2)(c) is deemed as met where the Board authorises an account manager other than the account manager who managed the deceased s account at the date of the deceased s death to accept a subscription from S. (8) The following regulations do not apply to a subscription permitted by regulation 5DDA 4(1B)(a), (b) and (e); 4B; 6(3); 10(2)(b), (c) and (ca); 21A(3)(b)(ii) and (iii) and 31(3)(c)(ii) and (iii). (9) The requirement in regulation 10(2)(d) is deemed as met where S makes a subscription permitted by regulation 5DDA. (10) Regulation 12(3) applies to a subscription permitted in accordance with regulation 5DDA with the following modifications (a) omit sub-paragraphs (d) and (e) where an account is opened in a year to which regulation 12(2) refers solely to receive subscriptions permitted by regulation 5DDA; and (b) in that regulation (i) omit sub-paragraph (ea); and (ii) in sub-paragraph (f), omit the words after or over. (11) Regulation 21 applies to a subscription permitted in accordance with regulation 5DDA with the following modifications (a) in paragraph (1), as if that subscription was a previous years subscription; and (b) in sub-paragraph (6), omit sub-paragraphs (b)(iii) and (iv).. 8. In regulation 5DF (a) at the end of paragraph (1)(b)(iv), for the full stop substitute a semicolon; and (b) after paragraph (1)(b) insert (c) in relation to a subscription permitted by regulation 5DDA (i) the deceased s full name; (ii) the full address of the deceased s permanent residence at the date of death; (iii) the deceased s national insurance number, or confirmation that he did not have one; (iv) the deceased s date of birth and date of death; and (v) evidence that S was married to, or in a civil partnership with, the deceased. (1A) The requirements in sub-paragraph (1)(c) are met where the information is provided on the first instance a subscription permitted by regulation 5DDA is made to an account.. 9. After regulation 5DF, insert 3

7 Declarations required by regulation 5D 5DFA(1) The declarations in regulation 5D(2)(c) required by S in relation to a subscription permitted by regulation 5DDA are (a) that S is the surviving spouse or civil partner of the deceased; (b) that S and the deceased were living together at the date of the deceased s death; (c) that the subscription is being made under regulation 5DDA; (d) that the subscription is being made (i) in the case of a subscription of non-cash assets made in accordance with paragraph (2) of that regulation, in the period beginning with distribution to S by the deceased s estate of those assets and ending no more than 180 days thereafter; (ii) in the case of any other subscription under that regulation, in the period beginning with the date of the deceased s death and ending - no more than 3 years thereafter, or in the case of the deceased s death occurring in the period beginning with 3 December 2014 and ending with 5 April 2015, no later than 5 April 2018; or - no more than 180 days after administration of the estate is complete. (2) The requirements in sub-paragraphs (a) and (b) are met where the information is provided on the first instance a subscription permitted by regulation 5DDA is made to an account In regulation 31(3)(c) (a) at the end of sub-paragraph (iv) omit and ; (b) at the end of sub-paragraph (v) for the full stop substitute a comma and insert and (vi) whether a subscription permitted in accordance with regulation 5DDA has been made at any time in the year or part of the year for which the return is made. Date Name 1 Name 2 Two of the Lords Commissioners of Her Majesty s Treasury 4

8 EXPLANATORY NOTE (This note is not part of the Regulations) These Regulations amend the Individual Savings Account Regulations 1998 (S.I. 1998/1450)( the principal Regulations ) to allow an additional permitted subscription to the surviving spouse or civil partner (S) of a person who held an Individual Savings Account at their death (D). Regulation 3 amends regulation 2 of the principal Regulations to insert a definition of a deceased s account. Regulation 4 amends regulation 2D to provide that an additional permitted subscription cannot be made to a junior ISA account. Regulation 5 amends regulation 4(1B) of the principal Regulations to allow an additional permitted subscription to be made in the form of non-cash assets where S inherits those assets from D and certain other conditions set out at regulation 5DDA(2)(f) are met. Regulation 6 amends regulation 5D of the principal Regulations. It adds an additional permitted subscription as a futher category of subscription to be disregarded for the purposes of the yearly ISA subscription limits. Regulation 7 inserts regulation 5DDA into the principal Regulations. Regulation 5DDA permits S (in addition to the yearly subscription limit provided for at regulation 4ZA) to subscribe an amount not exceeding the value of the ISA investments held by D on death, where D dies on or after 3 December Such subscriptions are subject to eligibility conditions, time limits and information requirements. Regulation 8 amends regulation 5DF of the principal Regulations to specify the information which S must provide when making a subscription permitted by regulation 5DDA. Regulation 9 amends regulation 5DF of the principal Regulations to specify the declarations which S must make when making a subscription permitted by regulation 5DDA. Regulation 10 amends regulation 31 of the principal Regulations to provide that an account manager must state in any return whether a subscription permitted by regulation 5DDA of the principal Regulations has been made. 5

9 6A Additional permitted subscriptions following the death of account holder Overview 6A.1 In this chapter, spouse includes a civil partner. From 6 April 2015 additional permitted subscriptions, on top of the annual subscription limit (see paragraph 6.1), are available to the surviving spouse of a deceased ISA holder. Additional permitted subscriptions are available in respect of deaths on or after 3 December The deceased and the surviving spouse must have been living together at the date of death. That is, not separated under a court order, under a deed of separation, or in circumstances where the separation was likely to be permanent. Additional permitted subscriptions must be made with the ISA manager who held the deceased s ISA (see paragraph 6A.3, and exceptionally 6A.4) are limited to the value of the deceased s ISA at their date of death (see paragraph 6A.2) must be made within specific time limits (see paragraphs 6A.11 and 6A.12) can be made in cash or inherited non-cash ISA assets (see paragraphs 6A.12 and 6A.11) are available whether or not the surviving spouse inherited the deceased s ISA assets can be made by non-residents cannot be made to a Junior ISA. The availability of additional permitted subscriptions does not change the treatment of the deceased s ISA. When the ISA manager is notified of the death of an account holder the ISA wrapper must be removed (see paragraph 12.7). The additional permitted subscription limit 6A.2 Additional permitted subscriptions are limited to the value of the deceased investor s ISA at their date of death. That will include any income accrued, but not paid or credited to the ISA at the date of death. If the deceased held a number of ISAs with the ISA manager the additional permitted subscription limit will be their combined value at the date of death. ISA managers must have processes in place to ensure additional permitted subscriptions do not exceed this limit.

10 Making additional permitted subscriptions 6A.3 Additional permitted subscriptions must be made to the ISA manager who held the deceased s ISA at their date of death (but see paragraph 6A.4). The subscription can be made to a cash or a stocks & shares ISA the surviving spouse holds with that manager or to a new cash or stocks & shares ISA opened for the purpose. Or to any combination of cash and stocks & shares, existing or new ISAs. Managers can insist on a new ISA being opened if this will allow them to police the additional permitted subscription limit. An ISA opened solely to receive the additional permitted subscriptions will not cause the saver to breach the one ISA of each type per tax year rule. Where the deceased held ISAs with a number of different managers the surviving spouse will have additional permitted subscription limits with each manager. 6A.4 Where, in exceptional circumstances, the ISA manager is unable to open an ISA for a surviving spouse for example where the manager s ISA book is closed to new business the manager should contact HMRC. Where HMRC accepts the manager is unable to open an ISA, they will arrange for a manager chosen by the surviving spouse to accept the subscription. Where a surviving spouse simply wishes to make an additional permitted subscription to a different manager they will have to arrange a transfer after the subscription has been made to the manager who held the deceased s ISA. 6A.5 A surviving spouse can make a single additional permitted subscription or a series of additional permitted subscriptions subject to the terms offered by the manager and so long as in aggregate they do not exceed permitted subscription limit i.e. the value of the deceased s ISA at the date of death. Subscriptions can be made at any time from the date of death subject to the time limits in paragraphs 6A.11 and 6A.12. 6A.6 Once an additional permitted subscription has been made, a surviving spouse can transfer their savings under the normal ISA rules, with the additional permitted subscriptions being treated as previous years subscriptions (see paragraph 6A.7 and chapter 11). Any further subscriptions counting towards the additional permitted subscription limit (see paragraph 6A.2) must continue be made with the manager who held the deceased s ISA. 6A.7 Additional permitted subscriptions are treated as previous year ISA subscriptions for all ISA purposes.

11 Information and declarations 6A.8 Before an additional permitted subscription can be made the surviving spouse must provide the following to the ISA manager. (i) The full name of the deceased (ii) The permanent residential address of the deceased at the date of death (iii) The National Insurance number of the deceased (or confirmation that he did not have one) (iv) The date of birth and date of death of the deceased (v) Evidence that they were married or in a civil partnership with the deceased These need only be provided when the first additional permitted subscription is made to the ISA manager. Manager should retain a copy of the evidence of marriage / civil partnership with their records. 6A.9 When making an additional permitted subscription, a surviving spouse must make a declaration confirming (i) they are the surviving spouse of the deceased (ii) they were living with the deceased within the meaning of section 1011 of the Income Tax Act 2007 at the date of the deceased s death (iii) the subscription is made under the provisions of regulation 5DEA of the ISA regulations (iv) the subscription is being made a. in the case of in specie transfers, within 180 days of beneficial ownership passing to the surviving spouse, and b. in the case of cash subscriptions, within 3 years of the date of death, or if later, 180 days of the completion of the administration of the estate. For the time limits in respect of deaths between 3 December 2014 and 5 April 2015 see paragraphs 6A.11 and 6A.12. Where a surviving spouse makes a number of additional permitted subscriptions, (i) and (ii) need only be made when the first subscription is made and not on subsequent occasions. The declaration confirming (iii) and (iv) must be made on every occasion an additional permitted subscription is made. Managers should accept the declaration in good faith unless they know the declaration to be untrue.

12 Additional permitted subscription non cash assets 6A.10 Where a surviving spouse inherits non-cash ISA assets, these may be used to make an additional permitted subscription in specie (without having to be sold and the subscription made in cash). Non-cash assets are any stocks and shares ISA qualifying investments other than cash deposits the following cash ISA qualifying investments o National Loans Act securities o depositary interests o short-term money market funds o money market funds Only inherited non-cash ISA assets can be used to make an additional permitted subscription in specie and provided the title to those assets has remained with the ISA manager or his nominee. If title has moved from the ISA manager or his nominee, the assets cannot used to make an additional permitted subscription. The subscription must be made in cash instead. The value of assets at the time the additional permitted subscription is made counts towards the additional permitted subscription limit (the value of the deceased s ISA at their date of death). The additional permitted subscription limit is not affected by any change in asset value during the administration period, so if the value of the assets increase during administration it will normally not be possible to subscribe them all to the ISA. If the value of the non-cash assets decreases they can all be subscribed in specie and a cash additional permitted subscription made to top up to the value at date of death. Where, exceptionally, the deceased held a combination of stocks & shares and cash ISAs with the same manager the surviving spouse will have a single additional permitted subscription limit with that manager (see paragraph 6A.3). In these circumstances, the combined date of death values may be sufficient to allow non-cash inherited ISA assets that have increased in value to be subscribed. A series of subscriptions up to the value at the date of death can be made provided, in aggregate, they do not exceed the additional permitted subscription limit (the value of the deceased s ISA at their date of death).

13 6A.11 Additional permitted subscriptions made in specie with non-cash assets must be within 180 days of beneficial ownership passing to the surviving spouse. Where the estate makes an interim in specie distribution(s) followed by a final distribution, each will have a 180 day window for subscriptions to be made. For distributions prior to 6 April 2015 in respect of deaths between 3 December 2014 and 5 April 15, the 180 days will run from 6 April A.12 Where additional permitted subscriptions are made in specie and the manager is not providing any suitability advice to the surviving spouse, the FCA have confirmed that the manager is not required to check suitability. Managers should, however, ensure the surviving spouse is provided with risk and investment information about the investments and suggest they consider taking investment advice. Additional permitted subscription cash 6A.13 Cash additional permitted subscriptions can be made using sums inherited by the spouse or any other cash they have available. The can be made to any combination of cash and stocks & shares, existing or new ISAs (see paragraph 6A.3). A series of subscriptions up to the value at the date of death can be made provided, in aggregate, they do not exceed the additional permitted subscription limit (the value of the deceased s ISA at their date of death). The time limit for making cash subscriptions ends 3 years after the date of death, or if later, 180 days after the administration of the estate is complete. Where the death of the ISA holder occurs in the period 3 December 2014 to 5 April 2015, the 3 year period starts on 6 April 2015, but the additional permitted subscription limit is still the value of the deceased s ISA at their date of death. Reporting 6A.14 All additional permitted subscriptions are treated as previous year subscriptions so managers do not need to report the amounts received. The Annual Return of Information (see Chapter 14) must include a flag to identify any account that received an additional permitted subscription. No other reporting by managers is required.

14 25A.1 Transfer of a CTF to a JISA Subject to the CTF and JISA terms and conditions, a CTF may be transferred to a JISA in a variety of ways by transferring investments in cash, or in a combination of investments and cash Transfers may be made between CTF providers and JISA managers, or investments in a CTF may be transferred from a CTF to a JISA (cash or stocks and shares) with the same institution. A CTF may be transferred even if at the time that the transfer is made the child would not be eligible for a JISA, for example because they are no longer resident in the UK, or dependant of a crown servant. 25A.1.2 The transfer should be carried out as soon as requested by the CTF registered contact, subject to any reasonable business period required to carry out the transfer (not exceeding 30 days), and expiry of any withdrawal period offered by the - JISA manager (see paragraph 11.33) 25A.1.3 CTFs must be transferred in full and the CTF closed once the investments/cash have been passed to the JISA manager. Part transfers of CTF investments cannot be made. Where the CTF has a nil balance, the transfer process must still be followed in order to allow the CTF provider to formally close their records. 25A.2 Internal transfer 25A.2.1 A CTF registered contact can transfer a CTF by requesting a transfer to a JISA offered by the same manager. 25A.2.2 To carry out an internal transfer the CTF registered contact must give the appropriate transfer instructions required by the provider. There is no requirement under the CTF or JISA rules for the transfer instructions to be in writing this is a matter for the terms and conditions applying to the JISA. 25A.3 External transfer

15 25A.3.1 JISA managers are not required to accept the transfer in of CTFs. A child cannot have a CTF and a JISA so if a CTF is transferred the whole account must be transferred and the CTF provider must close the account. The CTF can be transferred to either a cash JISA or a stocks and shares JISA. 25A.3.2 To effect a transfer the CTF registered contact must complete a transfer application with the JISA manager. The transfer application form is slightly different from that used to open the JISA. An example written external transfer application is at paragraph 25A.10, and a telephone external transfer application at paragraph 25A.11. It is recommend that managers include a line in the application form to advise that, if for any reason the transfer from the CTF is not successful, any JISA that has been opened on a provisional basis to accept the transfer will be invalid, and any subscriptions to the provisional JISA will be returned. The CTF will remain intact. See sample form at paragraph 25A.10. It is recommended that managers also include the following statement in the JISA application: If the child holds a CTF, it must be transferred as part of this application. See paragraph A.3.3 After completion of the form, and after expiry of any withdrawal period (see paragraph 11.33), the JISA manager must contact the CTF provider and request the transfer of the CTF. The JISA manager must not request the transfer until after expiration of any withdrawal period applying to the application for transfer. The JISA manager must give the name of the person who requested the transfer, as well as details of the account, to the CTF provider. The CTF provider must check the person requesting the transfer is the registered contact for the CTF. If not, the transfer cannot continue. The CTF provider should tell the JISA manager the applicant is not the CTF registered contact, but should not disclose their details. If the registered contact for the CTF, or the JISA applicant, changes, the transfer form can be re-sent to the CTF provider. Where there is no registered contact for the CTF, the person requesting the transfer must take up the role with the CTF provider before the transfer can go ahead. If the JISA provider has opened an account on a provisional basis pending the CTF transfer, they can allow a period of 60 days from provisional account opening for the registered contact to be changed and the transfer to go ahead, otherwise the provisional JISA must be closed. If the transfer request is made by telephone a signature is not needed unless the CTF provider s terms and conditions state they will not transfer the CTF unless they have received a written request with a signature. 25A.3.4 Subject to the terms and conditions of the two accounts, the transfer may be made in a variety of ways

16 investments may be re-registered in the JISA manager s, or his nominee s name in cash, or in a combination of investments and cash 25A.3.5 The CTF provider must transfer investments and/or cash direct to the JISA manager, and must keep a record of the transfer notice for three years after the date of transfer. Any original CTF application form should not be sent to the new provider, but must be retained by the CTF provider. There are no circumstances in which an original CTF application form should be transferred to the new JISA manager. 25A.3.6 The transfer should be carried out by the CTF provider as soon as requested by the JISA manager, subject to any reasonable business period required to carry out the transfer (not exceeding 30 calendar days). The transfer should not be delayed awaiting re-registration of investments, or receipt of dividends or other income from investments. Any sums received after transfer should be forwarded to the JISA manager together with details of the CTF in respect of which the sums have been received. 25A.4 External transfer history forms 25A.4.1 CTF providers should produce their own external transfer history forms. The form should be sent to the JISA manager within 30 days of the date of the transfer. A model for an external transfer form is at section All external transfer forms must contain the same details as the model. The form should be completed by the CTF provider as follows: 25A.4.2 Full name of child Providers should enter the child s full name (see paragraph ), as held on their records. 25A.4.3 Date of birth This should be reported in the format DDMMCCYY. For example: The date of birth of a child born on 3 June 2008 should be reported as A.4.4 Unique Reference Number (URN) of the child. 25A.4.5 Date of transfer This should normally be the date of which the JISA manager agrees to accept the transfer (see Appendix B). It should be reported in the format DDMMCCYY.

17 25A.4.6 Follow on dividends Enter details of the amount (if known) of any dividends which are payable on account investments but which have not been received by the date of transfer which will be forwarded to the JISA manager. The JISA manager should accept all payments forwarded to them. 25A.4.7 The JISA manager may accept any information or declaration offered in a transfer application at face value, but should not open an account if they believe that any of the information given by the applicant is untrue. 25A.5 Cancellation of a transfer 25A.5.1 Internal and external transfers cannot be carried out until after the expiry of any withdrawal period offered by the JISA manager (see paragraph 11.33), so where a registered contact exercises the right to withdraw the transfer request within such a period the CTF remains as it was before the transfer request. 25A.5.2 Seeking to exercise withdrawal rights after the expiry of any withdrawal period has no effect, and cannot prevent the transfer of the CTF that is underway. 25A.6 Refusal to accept an external transfer 25A.6.1 JISA managers are not required to accept any application for the transfer of a CTF. In addition, credit unions cannot accept a transfer to them of a CTF where the child does not fulfil the membership requirement. 25A.7 Subscriptions following a CTF to JISA transfer 25A.7.1 The annual subscription limits for a CTF are based on the child s birth year while JISA subscriptions are based on tax years. Where a CTF is transferred to a JISA, the CTF provider does not need to pass any subscription details to the JISA manager. Once the transfer has been made, the child can access the full JISA subscription limit for the tax year of transfer regardless of any subscriptions made to the CTF. For example, the child s birthday is 1 October so his CTF subscription year runs from 1 October to the following 30 September. The subscription limits for both a CTF and a JISA are 4080 and the CTF is transferred to a JISA on 1 December Subscriptions of up to 4080 could be made to the CTF between 1 October 2015 and 30 November Once the account has been transferred to a JISA, subscriptions of up to 4080 can be made between 1 December 2015 and 5 April The JISA manager only has to report subscriptions he has received (after 1 December 2015). 25A.8 Reporting following a CTF to JISA transfer 25A.8.1 JISAs opened following a JISA transfer should be reported in the normal way see Chapter 28. The child s CTF Unique Reference Number should be reported in the NINO field (see paragraph )

18 25A.9 25A.9.1. Subsequent JISA transfers In any subsequent transfers from the JISA, the child s URN must be passed to the new JISA manager. Once the former CTF is transferred to a JISA, the JISA can then be transferred to another JISA in the normal way. Transfers may be made between account providers, or investments in a JISA may be transferred (in whole or in part) from one type of JISA (cash or stocks and shares) to another.

19 25A.10 Example of written transfer application This transfer application must be completed by the registered contact for the CTF account The following stakeholder CTF features may not be included in a Junior ISA Lifestyling from age 15 Minimum subscriptions of 10 allowed Annual charge cap of 1.5% If you are applying to transfer a stakeholder CTF, tick this box to confirm that you understand this and wish to proceed. If the transfer from the CTF is not successful, any JISA that has been opened on a provisional basis to accept the transfer will be invalid, and any subscriptions to the provisional JISA will be returned. The CTF will remain intact. Applicant s title (if any) Full name Applicant s address Post Code.. I apply to transfer a CTF for Child s title (if any) Full name Child s address.... Post Code Child s date of birth Child s Unique CTF Reference Number.. (format AB123456C) CTF provider I declare that I am the registered contact for the CTF I authorise [Junior ISA manager s name] to hold the child s subscriptions, investments, interest, dividends and any other rights or proceeds in respect of those investments and cash, and to make on behalf of the child any claims to relief from tax in respect of JISA investments. Signed... Date...

20 25A.11 Transfer telephone applications The following stakeholder CTF features may not be included in a Junior ISA Lifestyling from age 15 Minimum subscriptions of 10 allowed Annual charge cap of 1.5% If you are applying to transfer a stakeholder CTF do you wish to proceed? If the transfer from the CTF is not successful, any JISA that has been opened on a provisional basis to accept the transfer will be invalid, and any subscriptions to the provisional JISA will be returned. The CTF will remain intact. What is your name? (Forename, middle initials, and surname) What is your address? (including postcode) What is the child s name? (Forename, middle initials, and surname) What is the child s address? (including postcode) What is the child s date of birth? (Day/Month/Year) What is the child s Unique CTF Reference Number (format AB123456C)? Details of your CTF provider? Do you declare that You are aged 16 years or older? You have parental responsibility for the child/are the child? You are the registered contact for the CTF? By applying to open a JISA you authorise us to carry out certain functions on your and the child s behalf, and to make a written copy of your application. Details of this will be sent to you, with the terms and conditions of this JISA. I will now read back the application and declaration to you if you agree that they are correct I can transfer the CTF from your current provider (after any withdrawal period).

21 25A.12 CTF Transfer History form Name of new JISA manager... Personal details of the child Child s title (if any), and full name. Date of birth:. Unique CTF Reference Number (format AB123456C):. Date of transfer:. Details of any investment income to follow Details of investments transferred

22 25A.13 Bulk Transfers 25A Every transfer from CTF to JISA must be made following an application by the registered contact for the CTF therefore there cannot be a bulk transfer of CTFs to JISAs.