HMRC ISA guidance could target structured products

  • Print
  • Comments (1)

The latest stocks & shares individual savings account (ISA) guidance from HM Revenue & Customs (HMRC) could affect the holding of structured products in the tax wrappers.

HMRC had earlier warned advisers some funds could be ineligible to be held within stocks & shares ISAs after the retail distribution review (RDR) comes in.

It had warned, “government securities funds or certain corporate bond funds or funds that guarantee a return to investors”  could be ineligible.

Funds for inclusion in the stocks & shares ISAs would have to meet a “5% test”, requiring funds to provide no guarantee or agreement investors will receive 95% or more of their purchase price within five years.

The test also states “the nature of the investments held by the fund must not significantly limit the risk to the investor’s capital to 5% loss or less within 5 years”.

Patrick Connolly, head of communications at AWD Chase de Vere, says: “I can’t think of any mainstream ISA products that would fall into this category.

“If there are, it would be a very, very small number of structured products. I can’t think of any funds it will affect.”

The full guidance can be downloaded here.

  • Print
  • Comments (1)

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

Money Marketing Awards 2015

Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (1)

  • Oh NO. Bancassurance advisers will have to think of something else to peddle to pensioners. I'm sure it won't take their marketing departments long to dream something new up.

    Unsuitable or offensive? Report this comment

Have your say Edit my profile/screen name

You must sign in to make a comment

Fund Data


Will the UK or the US raise interest rates first?