A new bulletin aimed at ISA managers and other interested parties has been published. The bulletin includes information on the new ISA subscription limits. These are being increased to £10,200 on 6 October 2009, of which up to £5,100 can be saved in cash, for people aged 50 years or over (including those who will not be 50 until later in the tax year).
The draft regulations are to be amended so that people aged 50 or over on 5 April 2010 will be able to subscribe from 6 October 2009. ISA managers need not obtain fresh application forms from the over 50’s to use the higher limits.
There are also some changes that should be made to the ISA declarations on the application forms in respect of the changes to the ISA subscription limits and some new guidance in respect of ISA transfers.
Finally, HMRC have confirmed that agency cross trades comply with the requirement of the ISA Regulations that all purchases and sales must be made at an open market price. However, where ISA managers offer a share exchange service the use of agency cross trades is specifically prohibited.