Guidance

ISA manager bulletin 80

Published 25 March 2020

ISA & Junior ISA subscription limits

The Junior ISA (JISA) subscription limit for the tax year 2020 to 2021 will increase to £9,000 from 6 April 2020.

The £20,000 ISA subscription limit, that includes the £4,000 Lifetime ISA payment limit remain unchanged for the tax year 2020 to 2021.

Changes to ISA statistical & annual claim forms

HMRC has published a revised ISA Statistical Return (ISA14a) and an amended ISA Annual Claim form (ISA14) on GOV.uk, to be used for 2019 to 2020 and subsequent years.

The ISA14 stats return for reporting ISA Market Values and the ISA25 stats return for reporting ISA Subscriptions have both been withdrawn.

The ISA14a Statistical Return is now the only form that ISA managers must complete to provide their annual ISA statistical information to HMRC within 60 days of the 5 April each year or the date of ceasing to act as an ISA manager

The ISA14a return can be used by managers of Cash, Stocks & Shares & Innovative Finance ISAs.

The form now includes:

The Statement of Income information for Stocks & Shares, Cash & innovative Finance ISAs which were previously on the ISA14 annual claim form.

The following Additional Permitted Subscriptions (APS) information have been added to the form:

• the number of customers who made an APS, and

• the total value of the Additional Permitted Subscriptions received in the tax year.

New guidance for ISA managers to help with completing the ISA Stats form (ISA14a) has been published on GOV.uk.

The previous guidance for completing both the ISA14(stats) and the ISA25(Stats) have been withdrawn.

The ISA14 annual claim form has been amended and published on GOV.uk. This form only needs to be completed and submitted to HMRC when:

• UK Income tax has been deducted from income earned by investments held in an ISA and no interim claims have been made.

• Interim claims have been to HMRC during the period ending 5 April and the ISA 14 consolidates the amounts claimed on those interim claims.

No changes have been made to the ISA interim claim form (ISA10).

The guidance for ISA managers on annual returns and tax claims has been updated to reflect the changes to the form

Junior ISA statistical forms

ISA managers who offer Junior ISAs should include their statements of income for both Stocks & Shares & Cash JISAs that was previously reported on the ISA14 annual claim form, on the revised ISA14a Statistical Return.

There is currently no requirement for ISA managers to separately report statements of income for their ISAs from their Junior ISAs.

No changes have been made to the following JISA statistical returns for 2019 to 2020:

• JISA14a Stats – JISA annual statistical return

• JISA14 Stats - JISA annual statistical return (Market value only)

• JISA25 Stats - JISA annual statistical return (Subscriptions only)

HMRC may decide to withdraw both the JISA14 & JISA25 statistical returns before the statistical returns for 2020 to 2021 are due to be made.

Continuing accounts of deceased ISA investors

Since 6 April 2018, when an ISA investor dies the savings of a deceased investor can continue to benefit from the tax advantages of an ISA during the administration period of the investor’s estate. Any interest, dividends or investment gains held in a continuing account of a deceased ISA investor that are paid after the date of the death and up to the closure of the ISA are exempt from tax.

Since the period ending 5 April 2019, ISA managers must include details of continuing accounts of deceased investors still open on 5 April each year on both their annual returns of account information and their returns of statistical information to HMRC.

Please refer to our guidance on the death of an investor for further information.

Lifetime ISA guidance

Following a review to improve HMRC’s detailed guidance for ISA managers on Lifetime ISAs, the structure of the guidance was changed on 12 March 2020. The changes have removed duplications in the Lifetime ISA guidance and should make it easier for ISA managers to search GOV.uk and find guidance on a specific aspect of the Lifetime ISA.

The Lifetime ISAs for ISA managers page sets out a summary of the Lifetime ISA and how to apply to be a Lifetime ISA manager.

Under the new heading, ‘Once you are a Lifetime ISA manager’ there are links to guidance on:

• Managing Lifetime ISA applications and accounts

• Transferring Lifetime ISAs

• Withdrawal charges

• Withdrawals for a first-time residential purchase

• How to close or cancel a Lifetime ISA