TISA - Tax Incentivised Savings Association - Technical Faq

Technical FAQ

Welcome to our Frequently Asked Questions (FAQs) section. Here youll find answers to some of the most popular questions asked about TISA and our services.

If what you are looking for isnt listed here, TISA members can search our technical bulletins or contact us for a full technical response (one of the benefits of membership). If you are interested in membership of TISA please contact us for further information.

Sample of recent technical enquiries:

Q: Do the ISA regulations that came into force in April 2018, permitting ISAs to maintain their tax efficiency after death, apply to all ISAs?
A: Yes, where an ISA client died on or after 6 April 2018, their ISA will automtically continue as a tax efficient continuing account even where there is no surviving spouse or civil partner.

Q: Where funds from a non-Lifetime ISA are transferred into a Lifetime ISA, does the amount transferred count towards the annual ISA limit (20,000 - 2018/19)?
A: Only current year subscriptions made to the ceding ISA will count towards the annual ISA limit but ALL the funds transferred count towards the Lifetime ISA limit (4,000 - 2018/19).

Q: Can ISA managerment fees/charges withdrawn from an ISA be replaced under the flexible ISA rules?
A: Not if the ISA management/fees charges are explicitly removed automatically from the ISA under the ISA's terms & conditions. If the ISA investor however, has the option of paying ISA fees/charges from outside of their ISA and chooses to withdraw ISA funds to pay the charges, such withdrawals can be replaced under the flexible ISA rules.

Q: Are there any industry guidelines for the transfer of Child Trust Funds (CTFs) to Junior ISAs (JISAs)?
A: Yes, industry guidelines have been produced by representatives from the industry. It should be noted that these guidelines are recommended and not prescriptive.

Q: What is the time limit for making APS payments?
A: It is either 3 years from the date of death or 180 days from completion of the administration of the deceased's estate, whichever is the later.

Q: What options are available if an ISA manager doesn't accept Additional Permitted Subscriptions (APSs)?
A: The surviving spouse/civil partner can request that their APS allowance is transferred to a different ISA manager after which they can then make an APS with the new ISA manager. The deceased ISA manager has a regulatory responsibility to provide the new ISA manager with the deceased client's details and the value of the surviving spouse's APS allowance within 30 days.

Q: Are there any industry guidelines for accepting APS payments and transferring the APS allowance?
A: Yes, industry guidelines which include several sample application and transfer forms have been produced by representatives from the industry. It should be noted that these guidelines are recommended and not prescriptive.

Q: Should ISA managers choose to offer flexibility, do they have to offer ths will all their ISA products?
A: No, ISA managers can choose which ISA products they would like to offre flexibility on and only need to amend the ISA terms & conditions of the chosen ISAs.

Q: Where ISA managers offer flexibility within their ISA products, do investors need to make a new/special ISA application?
A: No, there is no application required to replace funds that have been withdrawn.

Q: When ISA managers are notified by an investor that they were not UK resident in a particular tax year, does the manager have to wait to receive a void from HMRC before they can void the relevant ISA subscriptions?
A: No, as long as the ISA investor has made a declaration with regard to their non-residency in a particular tax year, the ISA manager can void any relevant ISA subscriptions immediately without any notification from HMRC.

Q: Where ISA managers offer flexibility within their ISA products, should the client request a transfer having made a withdrawal, what information does the ceding ISA manager pass to the new ISA manager?
A: The ceding ISA manager provides the new ISA manager with the 'net' figure for current year subscriptions. That is the current year subscriptions minus withdrawals. If the figure is a minus figure, the ceding ISA manager should report a 'nil' current year subscription.

Q: Are the ISA limits changing in the 2019/20 tax year?
A: No, the annual ISA limit will remain at 20,000 in total across all ISAs.

Q: Do the amended ISA regulations, from 5th August 2013, that allow shares admitted to trading on a recognised stock exchange in the European Economic Area (EEA) to be ISA qualifying, also apply to qualifying securities?
A: Yes, either the security or the shares in the issuing company will need to be officially listed on a recognised stock exchange or admitted to trading on a recognised stock exchange in the EEA.

Q: Are shares admitted to trading on the London Stock Exchange Specialist Fund Market (SFM) and High Growth Segment (HGS) ISA qualifying?
A: Shares admitted to trading on SFM or HGS will meet the ISA criteria for qualifying shares.

Q: Are there any additional reporting requirments for the 2018/19 ISA returns?
A: Yes, there will be an additional field on the ISA25 Statistical return to record the number of continuing accounts open on 5 April.

Q: Are ISA managers obligated to accept electronic payments as part of an ISA transfer?
A: No, the ISA regulations are not prescriptive regarding payment methods meaning ISA managers can stipulate which payment methods they will and won't accept.

Q: Do VCTs qualify for ISA inclusion?
A: It is possible that they could meet the criteria for qualifying shares although the current tax benefits on them are potentially better than those for ISAs (so there may not be any advantage in holding them within ISAs).

Static FAQs:

Q: Can you provide historical details of subscription limits?
A: Please see here.

Q: Where can I find information about TISAs responses to government and regulatory consultations?
A: Details of all responses are available on our website.

Q: Do TISA issue any public newsletters or publications?
A: We issue public newsletters annually, quarterly and monthly.  Also we regularly post blogs to LinkedIn on topical issues affecting our members and the savings and investment industry as a whole.

Q: Where can I find out about and make a booking for TISA training courses?
A: A list of courses is available on our website. To find out more about a particular course, see available dates or to make a booking simply click on the course that interests you. We also maintain a diary showing the dates of all TISA training.

Q: Where can I find out about and make a booking for TISA events?
A: A list of events is available on our website. To find out more about a particular event, see available dates or to make a booking simply click on the event that interests you. We also maintain a diary showing the dates of all TISA events.

Q: Where can I find information about TISA Exchange (TeX)?
A: We publish all TeX information on the TeX website.

Q: Do you keep a list of qualifying / non-qualifying investments?
A: No but we do maintain a list of responses to technical enquiries we have received in relation to investments eligibility. This information is available to all TISA members and searchable by stock name.

Q: Where can I find a list of recognised stock exchanges and other HMRC information?
A: HMRC maintain a public list of recognised stock exchanges on their website. We also maintain a list of quick links to the most relevant sections of the HMRC website for convenience.