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: When an ISA client dies, we complete R189K for all dividends received from the date of death and keep them on file – is this necessary?
A: You are quite right to do this – in line with HMRC Guidance notes 12.15. 30/5/08
Q: There is a GDR (Global Depositary Receipt) listed on the London Stock Exchange – will it be eligible for ISA inclusion?
A: The underlying shares that the GDR represents must be listed on a recognised stock exchange for the GDR itself to qualify to be held with an ISA. See HMRC Guidance 7.42 – 44 for more details. 30/5/08
Q: We have a potential investor who now lives in the US but wants to transfer his various ISAs in to us – would this be ok and can he still deal on it?
A: Yes, the residency criteria must only be fulfilled when the subscriptions were made and deals may be carried out without restriction. 30/5/08
Q: Does Investors Capital Trust qualify for ISAs?
A: This is an investment trust authorised in the UK under section 842 of the Income & Corporation Taxes Act 1988. To qualify for ISA inclusion investment trusts must pass the 50% test outlined in HMRC Guidance 7.36; this trust must therefore fulfill the relevant criteria to be ISA eligible as it is recorded in the AIC publication as having an ISA scheme available to investors. 11/6/08
Q: Can you provide some guidance in relation to what CTF claims we should be making and when?
A: A summary of the claims is as follows:
Annual tax claim – due by 5 October (CTF Guidance 12.7.1)
Return of Information – due by 4 June (CTF Guidance 13.1.1)
Fortnightly return – covered in CTF Guidance Chapter 14. 11/6/08
Q: Is there a list of regulated markets in relation to ISA eligible stocks/securities?
A: We use the HMRC list of recognised stock exchanges in relation to ascertaining ISA qualification: http://www.hmrc.gov.uk/fid/rse.htm 11/6/08
Q: What is the situation regarding United Utilities in relation to the B shares and the new ordinary shares for ISA investors?
A: The B shares will not be listed on a recognised stock exchange so will not qualify for ISA inclusion. The only option therefore to ISA holders will be to elect for the initial B share redemption whereby the redemption proceeds will be received by 19 August and may be used to purchase other qualifying investments. The other two options are not available to ISA holders due to both the deferred and the B shares having no listing on any recognised stock exchange. 23/6/08
Q: Do Capita Blue Oar UK Mid Cap B shares qualify to be held in ISAs?
A: This fund is authorised by the FSA in the collective investment scheme sourcebook (COLL) as a UCITS scheme and will therefore qualify to be held in ISAs by virtue of being an ‘authorised fund’ (see HMRC Guidance notes 7.19+) subject to the additional 5% test (Guidance 7.39). 23/6/08
Q: Can an individual resident but not domiciled in the UK subscribe to an ISA?
A: Investors must fulfil the residency criteria in line with HMRC Guidance 3.6 – 3.13 inclusive in order to subscribe to an ISA. If an ISA investor has become non resident after subscriptions have been made, the ISA may continue and investments may be bought/sold without restriction, but no further monies can be subscribed. If there is any doubt regarding an investor’s residency status then they can obtain clarification from their personal tax office. 23/6/08
Q: Is it possible to take up an open offer within an ISA?
A: Yes, this is fine – please see HMRC Guidance 7.68 for further detail on this. 4/7/08
Q: Does the ETF Commodity Securities Short Crude Oil qualify for ISA inclusion?
A: This particular ETF is eligible for ISAs by virtue of it being a ‘Relevant UCITS’ scheme ie an EU based UCITS scheme recognised by the FSA. For the factsheet please see here. 4/7/08
Q: Are stocks listed on the AMEX exchange eligible for inclusion in ISAs?
A: We can confirm that stocks listed on this exchange are qualifying for ISAs. 4/7/08
