UK plan managers in uproar as kick-out products barred from ISAs

Ian Lowes, Lowes Financial Management

HM Revenue & Customs (HMRC), the UK tax regulator, released a bulletin on March 25 reclassifying kick-out products as short-term investments, thereby rendering them ineligible for use in Independent Savings Accounts (ISAs).

“If you have a plan with a definite life span of less than five years then it cannot qualify as a stocks and shares ISA and that has always been the case,” says Ian Lowes, managing director of Lowes Financial Management.

But kick-out products have been submitted on tax returns