ISA Bulletin Number 17 - 6 January 2010

Savings Scheme Office

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.

What this Bulletin contains

This Bulletin contains an article on:

Reinvestment of misappropriated keydata ISA investments

Enquiries on this bulletin should be addressed to:

David Taylor
HM Revenue & Customs (SSO Liverpool)
Room 320

Tel: 0151 472 6156

Email: Savings Audit

Reinvestment of misappropriated keydata ISA investments

In ISA Bulletin 16 we informed you that keydata investors whose capital had been misappropriated would be issued with a certificate to allow them to reinvest in a new stocks and shares ISA. The certificates have now been issued to the investors and the maximum amount that can be reinvested is shown on the certificate.

The certificate enables these investors to reinvest some or all of their keydata ISA investment with another stocks and shares ISA provider by 5 April 2011. It shows:

  • full name
  • permanent address
  • information about the ISA being reinstated, including the maximum amount that can be reinvested in another ISA

Keydata investors who receive certificates will be told that they should give the certificate to their new ISA provider by 5 April 2011, together with a deposit up to the maximum shown on the certificate, if they wish to reinstate their ISA investment.

ISA providers wishing to receive sums from these keydata investors will need to:

  • Obtain the original certificate from the investor, and retain it (or an imaged copy).
  • Ask the investor to complete an ISA transfer form.
  • Accept a single deposit up to the maximum shown on the certificate to and including 5 April 2011.
  • Treat the amount deposited as a transfer of previous year subscriptions. This will mean that the work should be dealt with by the section that receives transfers rather than by counter staff.

Please note:

It is up to ISA managers whether or not they will accept transfers from keydata investors under these arrangements.

All keydata ISAs were stocks and shares ISAs, so the funds must be reinvested into a stocks and shares ISA: they cannot be reinvested into a cash ISA.

Keydata investors will be able to subscribe additional funds to the reinvested ISA, subject to the usual subscription limits.

ISA managers who have questions about the keydata certificate or the reinstatement procedure should email Savings Audit. We will issue further guidance in due course depending on the number and nature of questions received.

Future articles

Part of the purpose of the ISA Bulletins is to clarify areas of the Guidance Notes for ISA Managers. If you feel that any aspect of the guidance is unclear you should contact David Taylor on Tel 0151 472 6156.