ISA Bulletin Number 9 

Savings Schemes 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 IceSave - re-investment into an ISA.

Extension to the date when funds may be reinvested.

Enquiries on this bulletin should be addressed to:

David Taylor
HM Revenue & Customs (SSO Liverpool)
Room 320
Tel: 0151 472 6156
Email: David Taylor

IceSave - re-investment into an ISA

In October 2008 the government announced that individuals who had IceSave ISAs would be allowed to re-invest the compensation received from the Financial Services Compensation Scheme (FSCS) in an ISA with another provider no later than 5 April 2009. We published details of the arrangements in ISA Bulletin 6 dated 6 November 2008.

We have become aware that a small minority of ISA investors have not received their compensation and/or their ISA certificates. This means that these investors will be unable to re-invest their compensation payments by 5 April 2009 and would therefore lose their ISA tax advantages.

In order to ensure that investors are not disadvantaged compared to those who have received a certificate and/or compensation the time limit for re-investment will be extended from 5 April 2009 to 5 October 2009, with immediate effect.

The FSCS certificates will all show the original reinvestment date of 5 April 2009 but ISA providers who chose to accept these transfers from customers of Icesave under these arrangements, should note the new extended date for reinvestment.

Certificates accepted after 5 April 2009 may show subscriptions made by the investor to Icesave in 2008-09. If managers are able to include these 2008-09 subscription details on their 2008-09 return they should do so but if the return has been made the 2008-09 Icesave subscription details should not be reported as 2009-10 subscriptions. Instead, they will fall out of reporting.