Keydata Isa investors unlikely to face tax liabilities

  • Story by: Sharon Flaherty
  • Magazine: FTAdviser
  • Published Monday , June 15, 2009

Isa investors caught up in the Keydata Investment Services administration are unlikely to be liable for any additional tax, despite the firm being declared insolvent due to tax liabilities.

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Last week, Keydata went into administration after it found a number of its products did not comply with Isa regulations. (See article.)

The products that fall into this category are Secure Income bonds (SIB) issues 1 to 3, Secure Income Plan (SIP) issues 1 to 14, but excluding 13 and Defined Income Plans (DIP) issues 1 to 8.

Speaking to FTAdviser.com, a HMRC spokesman said: "It is normal practice to seek to recover tax arising from the breach of Isa rules from the provider themselves.

"HMRC will work with the joint administrators with a view to protecting the tax position of Isa investors as far as possible. We will look to ensure that Isa investors are able to keep their Isa wrapper."

On Friday, Dan Schwarzmann, joint administrator and partner of PricewaterhouseCoopers, confirmed the firm is working with HMRC to resolve the matter and recover the tax liability from the Isa manager. (See article.)

PwC understands that the value of these investments is £250m, with around 30,000 investors impacted.



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