Latest News

  • Home /
  • Latest News

Prudential - Individual Savings Accounts (ISAs): planning ideas

13 November 2020
Maximising ISA subscriptions
  • How to meet the tax-year-end deadline with last-minute subscriptions.
  • ‘Bed and breakfasting’ anti-avoidance rules don’t apply to ISA wrappers.
Last-minute subscriptions

Investors who leave their annual ISA subscriptions to the end of the tax year need to be mindful that an ISA begins from the later of:

  • the date on which the ISA manager accepts the application form, and
  • the date on which the subscription is made.
ISA subscription dates

  • By cheque – the date on which the cheque is received and accepted by the ISA manager provided it clears in due course.
  • By direct debit – where the ISA manager can subsequently draw on that, the subscription is made on that later date, provided the cash transfer takes place in due course.
  • By debit card, charge card or credit card – subscription is made the date on which authorisation is given by the investor.
  • By standing order – where the instruction pre-dates the date on which the first payment is due, then subscription is made on that later date, provided the cash transfer takes place in due course.
  • By telegraphic transfer – if the investor transfers the funds directly, the date on which the subscribed funds are received by the ISA manager.
An ISA manager may therefore accept an application before a subscription is made, but if he does the ISA does not begin until a subscription is made.

Example

Mr Philips submits a direct debit authorisation to his ISA manager in March 20X9. The ISA manager is authorised to draw £100 on the 10th of each month as a subscription to Mr Philips's ISA, starting on 10th April 20X9. Despite the authorisation being received in the tax year 20X8-20X9, the ISA subscriptions are made in 20X9-20X0. 

'Bed and breakfasting' and ISAs

The term ‘bed and breakfasting’ is used generally to cover arrangements in which a person sells shares or units only to buy back those of the same class a short time later. The purpose is to create a disposal for capital gains tax purposes but to regain ownership. This may be to realise a loss, which can then be set off against other gains or establish a higher base cost for the asset. TCGA 1992 S105(1) however provides that a disposal must be identified with the acquisition of share/units of the same class within 30 days. This has the effect of reducing or eliminating the gain or loss which would have arisen if the disposal had been identified with shares already held. If however the re-acquisition is within an ISA wrapper then this anti-avoidance rule doesn’t operate, since the capacity of the seller and the purchaser is not the same – i.e. individual sells but ISA manager acquires.

For more information on Prudential ISA or to discuss ISA planning or client reviews in more detail please speak to our dedicated Prudential Account Manager.
 

16 December 2021

Invesco - Investment Intelligence Seminars 2021 - On demand


14 December 2021

Invesco - 2022 investment outlooks


10 December 2021

Prudential: Case study 3 - Funding for decumulation


8 December 2021

intelliflo - Uncovering the advice gap; the Advice Map of Britain


29 November 2021

Just WIN, WIN, WIN... Thank you


26 November 2021

Blackfinch Energy acquires largest solar farm to date


26 November 2021

ESG at Invesco


26 November 2021

Prudential - International Portfolio Bond – helping your clients help the planet


16 November 2021

Octopus On Film - Diversity and inclusion


3 November 2021

What investors want: Our research on client perceptions of ESG investing


3 November 2021

Mitigo - Why cyber risk management is not the same as IT support


28 October 2021

intelliflo - Why you shouldn’t discount technology for older clients


28 October 2021

Prudential - The year of 2.5 budgets


25 October 2021

Invesco - Small steps to a better future


15 October 2021

Prudential - ISA Case study 1 – Managing volatility with cash


14 October 2021

Prudential On Film - ESG


12 October 2021

intelliflo - How technology will impact the future of paraplanning and advice


11 October 2021

Just: Winners of Just Group vulnerable customer awards announced


11 October 2021

Prudential: ESG Policy for the Risk Managed Passive and Risk Managed Active fund ranges


7 October 2021

Aegon - Thinking ahead: Social care funding and intergenerational advice


13 September 2021

Invesco - Investment Intelligence Seminars 2021 – register now


8 September 2021

Blackfinch Renewable European Income Trust September 2021


7 September 2021

intelliflo - Five benefits of a client portal


7 September 2021

Prudential - Our 'Future-proofing Fridays' seminars are coming to you virtually


6 September 2021

Prudential - New PruFund Support


26 August 2021

PruFund range of funds - EGR and UPR announcement


26 August 2021

intelliflo - The power of deep integrations


25 August 2021

PruFund Planet - Support for your ESG client conversations


23 August 2021

Prudential - PruFund Planet - How are the funds managed?


20 August 2021

Prudential - Download the app for automatic daily valuations through intelliflo


12 August 2021

Prudential - The Great Reset: Why it's time to invest for a sustainable recovery


11 August 2021

Prudential - Planning for education?


6 August 2021

Invesco - It's more about growth than inflation


6 August 2021

Prudential - Sir Isaac Newton’s first law of motion and ESG


3 August 2021

Prudential - PruFund Planet - The power to create the world your clients want


2 August 2021

Prudential - Our 'PruFund Planet - a world of good' seminar is coming to you virtually


21 July 2021

Just on Film - Vulnerable Clients


19 July 2021

Prudential - Pep up your ISA planning webinar


7 July 2021

intelliflo - Future-proofing your technology


2 July 2021

Prudential - Our 'Onshore... Offshore - you decide' seminar is coming to you virtually


1 July 2021

Prudential - New AKG financial strength report and due diligence support