Preparation for Digital ISA reporting

HMRC are undertaking a technical consultation on the draft Statutory Instrument (linked below) which amends the ISA Regulations. HMRC plan to lay the Statutory Instrument this summer for it to be effective from 6 April 2027 and have effect in relation to the tax year 2027-28 and subsequent tax years.

ISA Amendment Regs 2025 draft 250404 (002)

To prepare for digital ISA reporting, the changes will:

• require a National insurance Number (NINO), or confirmation of ineligibility to obtain one, where one is not already held for an investor who is subscribing to an ISA
• require ISA managers to submit reports of any ISA subscriptions or subscription balance changes on a monthly basis
• require ISA managers to take action to correct any oversubscriptions, as directed by HMRC, before the next monthly report
• simplify the rules for ‘flexible ISAs’ to allow savers to replace withdrawn current year ISA subscriptions with any ISA manager.

Additionally, there are draft changes to the ISA Regulations to maintain the good administration of funds to:

• allow all funds within the Temporary Marketing Permissions Regime (TMPR) at the start of the transitional period to remain as ISA qualifying investments until 1 January 2027 (this will also be reflected in the CTF Regulations); and
• specifically include Long Term Asset Funds (LTAFs) within the qualifying investment types for the Innovative Finance ISA

HMRC are seeking feedback on these changes by the 30 April 2025, ABCUL will be responding to HMRC on our members behalf, if you would also like to respond directly to HMRC any feedback can be sent to enquiries.savings@hmrc.gov.uk.