HMRC tells Isa managers take no further action on kick-outs
Share
HM Revenue & Customs has told Isa managers to take “no further action” to identify any holdings of kick-out plans until it has concluded its review.
HMRC’s Isa bulletin 19 published in March warned that certain plans with a kick-out feature within an Isa that could allow the plan to mature early and within the five-year term may not qualify for Isa status.
It asked managers offering stocks and shares Isas to check whether they were holding kick-out plans within the Isa wrapper, and if so, to contact them.
But in an update yesterday HMRC told Isa managers to take no further action.
It said: “We have received a number of representations about our interpretation of the rule that qualifying securities must not be issued on terms that require the loan to be repaid or the security to be re-purchased or redeemed within the period of five years from the date of purchase.
“While we are considering these representations Isa managers need take no further action to identify any holdings of ‘kick-out’ plans. We will provide an update when we have concluded our review.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
