Icesave – TISA steps in to assist HM Treasury ensure that ISA investors retain their tax free status
All UK investors caught up in the demise of Icesave have reason to be cheerful now that the Financial Services Compensation Scheme has announced its arrangements for compensation payments – none more so than Icesave Cash ISA investors.
Technically, UK savers with Icesave Cash ISAs had found their compensation falling outside the ISA environment. This was unintended, but meant that existing ISA requirements needed revision – and quickly. TISA became actively involved with HM Treasury in refining the procedures.
TISA is very pleased to note that special arrangements announced today by HM Revenue & Customs will now permit these savings to be reinvested with another ISA manager before the end of this tax year. Details are published as HMRC ISA Bulletin No.6 and will be available at www.hmrc.gov.uk/isa/bullmenu.htm.
Peter Shipp, Technical Director at TISA commented:
“This is an excellent outcome and demonstrates just how effectively Government officials and TISA can work together to secure fair treatment for the industry’s customers.”
Ends
For further information, please contact:
Anne McMeehan, Cauldron Consulting – Tel: 020 3178 7237, Mobile: 07764 184384 Email: anne.mcmeehan@cauldron-consulting.com
Peter Shipp, Technical Director (Savings Schemes), TISA – Tel: 01642 666987, Mobile: 07977 013335Email: peter.shipp@tisa.uk.com
Carol Knight, Head of Member Services, TISA – Tel: 01642 666989, Mobile: 07967 317003Email: carol.knight@tisa.uk.com
Notes to editors:
1. The Tax Incentivised Savings Association (TISA)
HM Government uses TISA’s market knowledge and ability to represent the views of both the savings and investments industry and consumers to help it to deliver its policy in this area. Recent TISA successes include improvements to the ISA, the regime in which ISAs operate and simplification of the CTF.
TISA is the premier trade association in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst at the same time encouraging more people to save for their long term financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership which comprises over 120 member firms involved in the supply or distribution of products to the sector and its consumer interest. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles including:
• Individual Savings Accounts (ISAs)
• Child Trust Funds (CTFs)
• Saving Gateway
• Personal Pensions and Personal Accounts
• Investment Bonds
• Employer based pension schemes
• Wraps and platforms
• Other consumer-centric savings schemes and initiatives.
TISA’s website: www.tisa.uk.com
2. The Financial Services Compensation Scheme (FSCS)
The FSCS has announced arrangements for compensation payments to UK customers. Details of the procedure, which for most savers will result in compensation being paid directly into their bank accounts, are set out in detail on the FSCS website at www.fscs.org.uk/consumer/