Yesterday on its website, PwC said income for these products, of which over £350m is invested, will be paid gross and clients will need to include all income paid by the administrators on their personal income tax return.
The administrators will then be obliged to notify HM Revenue & Customs of such payments. As before, no early redemptions are possible on these products.
PwC says: “We understand this will be bad news for those individuals who thought they had invested in Isa compliant products.”
PwC says there is no issue with cash Isa products where KIS undertakes administrative processing services for third party clients and payments are being made in the normal course.
PwC says: “Income will be paid on other products as and when the tax position is clarified. This includes redemptions and maturity payments.”
Delays to income on Keydata products continue as PwC said discussions with HMRC have proved “very complex” and remain unresolved.
It hopes to be in a position to provide a full update on this issue by July 27.