The UK's economic secretary, Kitty Ussher, has announced that the government would allow people who during the recent financial market disruption withdrew cash from individual savings accounts held at Northern Rock and in the process lost their tax advantages - to re-deposit that money into a cash ISA with Northern Rock or any other provider, restoring their tax advantages.
Savers wishing to restore their lost cash ISA tax advantage must by April 5, 2008 either return their funds to a Northern Rock individual savings accounts (ISA), or obtain from Northern Rock a certificate for the amount of cash ISA savings withdrawn between and September 13 and September 19, 2007, and present this to a new cash ISA provider when depositing the money.
This announcement applies to funds withdrawn from Northern Rock ISAs between September 13 and September 19, 2007 inclusive.
Mr Ussher said: To ensure that Northern Rock ISA savers are not penalized by the financial instability in the market. I can announce today that in these exceptional circumstances, the government will allow the people affected to re-invest their money into any cash ISA, including Northern Rock’s, and thereby restore their tax advantages.