Citation and commencement

1. These Regulations may be cited as the Individual Savings Account (Amendment) Regulations 2026 and come into force on 6th April 2026.

Amendment of the Individual Savings Account Regulations 1998

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

(2) In regulation 2 (interpretation), in paragraph (1), in sub-paragraph (b), after the definition of “recognised UCITS” insert—

““UK cryptoasset exchange traded note” means a debt security—

In this definition, the expressions “debt security”(4), “trading venue”(5), “recognised investment exchange”(6) and “unregulated transferable cryptoasset”(7) have the meanings given in the Glossary of the Financial Conduct Authority Handbook as in effect on 8th October 2025(8);”.

(3) In regulation 4 (general conditions for accounts and subscriptions to accounts)(9)—

(a)in paragraph (6), in sub-paragraph (b), in the words before paragraph (i), after “regulation 8A(2)(cb)” insert “or (cd)”;

(b)in paragraph (7), in the words before sub-paragraph (a), after “regulation 8A(2)(cb)” insert “or for a stocks and shares component within regulation 7(2)(s)”.

(4) In regulation 5DDA (additional permitted subscription to an account other than a junior ISA account)(10)—

(a)in paragraph (2), in sub-paragraph (e), in paragraph (v), after “regulation 8A(2)(cb)” insert “and (cd)”;

(b)in paragraph (3A), after “regulation 8A(2)(cb)” insert “, (cd)”;

(c)in paragraph (11), in sub-paragraph (b), in paragraph (iv), for “or (cb)” substitute “(cb), or (cd)”.

(5) In regulation 7 (qualifying investments for a stocks and shares component)(11)—

(a)in paragraph (2)—

(i)at the beginning of sub-paragraph (b) insert “subject to paragraphs (2G) and (2H),”;

(ii)after sub-paragraph (r) insert—

“(s)investments in a long-term asset fund(12).”;

(b)after paragraph (2E) insert—

“(2F) Investments which immediately before 6th April 2026—

(a)were held under an innovative finance account(13), and

(b)were qualifying investments for an innovative finance component(14) falling under regulation 8A(2)(cc) as in force at that time,

are to be treated, for as long as they are so held, as qualifying investments for a stocks and shares component(15) falling under paragraph (2)(s) and held under a stocks and shares account(16).

(2G) A UK cryptoasset exchange traded note is not a qualifying security for the purposes of paragraph (2)(b).

(2H) Notwithstanding paragraph (2G), investments which—

(a)immediately before 6th April 2026—

(i)were held under a stocks and shares account, and

(ii)were qualifying investments for a stocks and shares component by virtue of being UK cryptoasset exchange traded notes falling under the definition of qualifying securities in paragraph (2)(b), and

(b)ceased to be qualifying securities for the purposes of paragraph (2)(b) on the coming into force of paragraph (2G),

are to be treated, for as long as they are so held, as qualifying investments for a stocks and shares component.”.

(6) In regulation 8A (qualifying investments for an innovative finance component), in paragraph (2)(17)—

(a)omit sub-paragraph (cc);

(b)before sub-paragraph (d) insert—

“(cd)investments in a UK cryptoasset exchange traded note;”.

(7) In regulation 31 (returns of information by account manager)(18)—

(a)in paragraph (3), in sub-paragraph (d)—

(i)in the words before paragraph (i), for “(ca) or (cb)” substitute “(ca), (cb) or (cd)”;

(ii)in paragraph (ia), after “regulation 8A(2)(cb)” insert “or (cd)”;

(b)in paragraph (4)—

(i)in sub-paragraph (a), after paragraph (vii) insert—

“(viii)investments in a long-term asset fund,”;

(ii)in sub-paragraph (d), in paragraph (iv), after “regulation 8A(2)(cb)” insert “or (cd)”.