HC Deb 26 November 1991 vol 199 cc445-6W
Mr. French

To ask the Chancellor of the Exchequer if he will take steps to remind banks and building societies of the specification of section 4 of S.I. 2361/1990 that tax-exempt special savings accounts must be transferable from one society or institution to another society or institution.

Mr. Maude

There is no need, since there is no evidence to suggest that institutions are not allowing savers to transfer their TESSAs elsewhere.

Mr. French

To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Gloucester, 13 November,Official Report, column 526, if he will review the extent to which TESSA issuers are departing from the aims of TESSAs, as stated in the 1990 Budget, by levying penalties for withdrawing interest.

Mr. Maude

The TESSA rules specify the maximum amount of interest which may be withdrawn without loss of tax exemption. Within those limits, the terms under which withdrawals may be made are a matter for agreement between investors and operators.