ISAs

Question 1

ISA Transfers

Answer 1

• ISA managers must allow transfers
• No corresponding requirement for managers to accept transfers.
• Must transfer all of current year’s subscription
• Partial transfers of previous year’s subscriptions allowed

Question 2

Termination

Answer 2

• On death, ISA becomes a continuing ISA
• No further funds can be added
• Income and gains are tax free until earlier of estate being administered, the ISA being closed or 3
years from the date of death

Question 3

Child Trust Funds

Answer 3

• To provide long-term saving & investment for children born from 01/09/2002
• Basic government voucher at time (stopped now)
• Three types of account: savings, share account, stakeholder account
• Maximum contribution in line with Junior ISA - £4,368
• Exempt from income tax and CGT
• Can be transferred to a Junior ISA
• Belongs to child at age 18
• No new CTFs can be opened