This is a small sample of the queries received into the TISA office recently. Raising issues for response is one of the benefits of membership - for more details please contact us.
Q: Do China Goldmines shares qualify for ISA inclusion?
A: No, they are not listed on a recognised stock exchange – they are only on AIM. 10/5/10
Q: Do HMRC update the magnetic media specification every year?
A: Not as far as we are aware, only when there have been significant changes to the ISA scheme. 10/5/10
Q: Can we rectify an accidental overclaim on an ISA 10?
A: Yes, this would be fine or you could alternatively make the payment via the ISA 14. 10/5/10
Q: We are going to start offering our clients the facility to apply and subscribe to an ISA via phone – could you examine our application form for us?
A: Please send it through and we would be happy to take a look for you. 21/5/10
Q: Can shares which come early out of a SIPP be transferred into an ISA?
A: There should be no problems with this. 21/5/10
Q: Can you give some guidance with regards to the date of subscription for a Bed and ISA in relation to whether the sale date or settlement date is the key date.
A: See HMRC Bulletin 15 for further detail on this as the previous stance has been amended. 21/5/10
Q: Do subscription shares qualify for ISA inclusion?
A: HMRC regard them as qualifying shares and if they meet the relevant criteria at 7.4 HMRC Guidance then they are eligible to be held within ISAs. 2/6/10
Q: Do you have any further information relating to the changes to Child Trust Funds?
A: See TISA Bulletin 616 for details. 2/6/10
Q: We have an ISA which was subscribed to in the last tax year but the investor died shortly thereafter. Do we still need to report this on the ISACOM100?
A: Yes, managers must report details of all ISAs managed during the return period, including ISAs transferred in and ISAs that have been closed. 2/6/10
Q: Are you aware of HMRC issuing void notices in bulk again?
A: Yes, this has been brought to our attention – we have raised it with HMRC and are assured that all post is sent out every day. Please bring to our attention anything untoward. 15/6/10
Q: We have received a client’s signed letter in from an ISA manager who wishes to transfer their ISA away from ourselves to this other manager – are we ok to act on this?
A: See HMRC Guidance 11.1a for details, this should be fine. 15/6/10
Q: Is the Indian Stock Exchange classed as a recognised stock exchange for ISA purposes?
A: No – recognised stock exchange information can be found here. 15/6/10
Q: Could you provide a detailed synopsis of the main and relevant points in the Emergency Budget with regards ISAs and pensions?
A: See TISA bulletins 617 and 618 for details. 28/6/10
Q: If we sell a holding in the client’s taxable account but buy back different shares with the money is this ok?
A: This would be fine – investments held outside an ISA can be sold and the proceeds subscribed to an ISA. The subscription can be used to buy back the same investments but doesn’t have to, so the situation you mention would be fine. 28/6/10
Q: Does Gold Bullion Securities qualify for ISA inclusion?
A: No, they are redeemable at the option of the holder. See TISA bulletin 431 for reference. 28/6/10
Q: Can money market funds be held in stocks and shares ISAs?
A: The general rule is that Money Market Funds will fail the ISA 5% test and will therefore not qualify for stocks and shares ISA inclusion. Due to the nature of the ISA 5% test (ISA Guidance 7.39) though it may be possible in theory for a fund which markets itself as a money market fund to pass the 5% test and be stocks and shares qualifying, if for example only a minority of the fund were made up of money market instruments. 8/7/10
Q: Can you point me to the new guidelines issued for cash ISA transfers following the OFT response to the super complaint?
A: Please see TISA bulletin 619 for details. 8/7/10
Q: Do London Mining shares qualify for inclusion in ISAs?
A: Yes, they are listed on Oslo Axess which is a recognised stock exchange. 8/7/10
Q: Can you provide a rough summary of the CTF changes and some idea of the timescales involved?
A: See TISA bulletin 620 and 623 for details. 20/7/10
Q: Are GDRs eligible to be held within the ISA wrapper?
A: Provided that the underlying shares they represent are listed on a recognised stock exchange – see HMRC Guidance 7.44 for further detail on this. 20/7/10
Q: Do Gagfah shares qualify for ISA inclusion?
A: These shares appear to have a listing on the regulated market of the Frankfurt Stock Exchange therefore should be eligible for ISAs subject to the 5% test (HMRC Guidance 7.39). 20/7/10
