Inland Revenue alters ruling on invalid Isas

The Inland Revenue has acted to remove the need to close down all Isa subscriptions mistakenly made ...

The Inland Revenue has acted to remove the need to close down all Isa subscriptions mistakenly made in contravention of Isa regulations. The amended Isa rules come into force on 8 January and allow for the repair of certain invalid Isas taken out after 6 April, 2001. Under the new regulations, investors who have subscribed to an incompatible combination of maxi and mini Isas will now be able to repair and retain the first invalid Isa. The proceeds of the second invalid Isa will be returned to the investor minus the tax breaks. Previously, both Isas would have been declared invalid. The...