keep The Individual Savings Account (Amendment) Regulations 2025
Amends the Individual Savings Account Regulations 1998 to: add a definition of 'long-term asset fund'; require account managers to verify national insurance information before accepting subscriptions; clarify replacement subscription rules for flexible accounts; add a rule preventing withdrawals reducing current year subscriptions below nil; provide transitional treatment for certain UCITS investments until 31 December 2026; and add long-term asset funds as qualifying investments for the innovative finance component.
While these amendments add a national insurance verification requirement (a minor administrative burden), deletion would: prevent long-term asset funds from being eligible ISA investments, restricting investor choice; create disruption for UCITS investments held in ISAs through the transitional provision; and remove clarifications to flexible account replacement rules that benefit savers. The verification requirement, while burdensome, helps maintain ISA eligibility rules and prevents fraud that could undermine the tax-advantaged status upon which millions of savers depend. The expanded investment options for innovative finance ISAs represent a net benefit for Britons seeking diversified savings vehicles.