Acquisition of qualifying assets

Summary

This section sets out the conditions under which assets can be acquired for an individual’s SSIA. It ensures that acquisitions adhere to the arms length principle and provides that, in certain circumstances, qualifying assets may include shares in a company which is about to be floated on the stock market.

Details

Qualifying assets: conditions

(1) The savings manager can only acquire assets to be held in an individual’s SSIA using the funds (subscriptions and tax credits) in the SSIA and such acquisitions must be at arm’s length and not from the individual or any person connected with the individual.

(2) Furthermore the assets acquired must be acquired on “stand alone” terms and not on terms which are influenced by the terms of any other asset or liability of the individual. Likewise, the terms of any other asset or liability acquired and held by the individual cannot be influenced by the commencing of an SSIA.

Whereas quoted shares can be qualifying assets, a savings manager is also permitted to apply for an allotment of shares in a company which, in pursuance of a public offer, is to be listed.

Relevant Date: Finance Act 2021