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: Are there any industry guidelines for Stocks & Shares to Cash ISA Transfers?
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: 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 - 2017/18)?
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 - 2017/18).

Q: When are the ISA regulations that permit an ISA to maintain it's tax efficiency after death coming into force?
A: The changes will come into force on 6 April 2018 and the regulations and ISA guidance should be available from Autumn 2017.

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: Do ISA managers have to offer and accept Additional Permitted Subscriptions (APSs) from 6 April 2015?
A: No, this is a business decision and is not mandated in the ISA regulations.

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: Do ISA managers have to offer flexibility within their ISA products from 6 April 2016?
A: No, managers have the option of whether to include the new flexibility freedoms, coming into force 6 April 2016, within their ISA terms & conditions.

Q: Where ISA managers offer flexibility within their ISA products from 6 April 2016, 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: Can ISA withdrawals to pay for ISA fees/charges be treated as flexible withdrawals and therefore be eligible for replacement?
A: Yes, as long as the investor had the option to pay the fees from outside of the ISA. Where fees/charges are debited automatically from within an ISA, as stipulated in the ISA T&Cs, such withdrawals don't qualify as flexible withdrawals and can't therefore be replaced without counting towards the annual ISA subscription limit.

Q: Where ISA managers offer flexibility within their ISA products from 6 April 2016, 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: What are the ISA limits for 2017/18 tax year?
A: 20000 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: What are the tax implications of selling and buying back shares held as part of an Enterprise Investment Scheme (EIS) or a Venture Capital Trust (VCT) into an ISA?
A: Please see TISA bulletin 712 for further information (members only).

Q: We have an investor who wants to take up an open offer within their ISA but has insufficient funds therein what can we do in this situation?
A: HMRC Guidance 7.59 addresses this.

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.