Citation and commencement

1. These Regulations may be cited as the Individual Savings Account (Amendment) Regulations 2006 and shall come into force on 1st January 2007.

Amendment of the Individual Savings Account Regulations 1998

2.The Individual Savings Account Regulations 1998( 3 ) are amended as follows.

3. In regulation 2(1)(a) (interpretation) insert at the appropriate place—

“ “building society bonus”, except in regulation 22(1)(a)(i), excludes any bonus, distribution of funds or the conferring of rights in relation to shares—

and “payment under a building society bonus scheme” shall be construed accordingly;. ” .

4. In regulation 22(1)(a) (exemption from tax)—

(a) in paragraph (i) at the end add “(excluding any building society bonus)”;

(b) after paragraph (ia)( 5 ) insert—

“ or

(ib) in respect of a payment under a building society bonus scheme, so far as the payment is calculated by reference to account investments (and if paid directly by the society into the account, the payment shall not count towards the subscription limits in regulation 4(2) to (3)); or”. ”

5. After regulation 22(1)(b) insert—

“ (ba) any gain or loss accruing on and attributable to a payment within paragraph (ib) of sub-paragraph (a) shall not be a chargeable gain or allowable loss for capital gains tax purposes; ” .