What happens when a Help-to-Save account balance is transferred to a different authorised provider under Schedule 2 paragraph 13?

Under Treasury regulations, the receiving provider's account is automatically treated as a Help-to-Save account, and both the old and new accounts are regarded as one continuous account. This ensures the account holder's bonus entitlement and saving history carry forward seamlessly without resetting any relevant time periods or disrupting government bonus calculations.

What special rules apply when the Director of Savings provides Help-to-Save accounts?

Three special rules apply: operational matters can be handled through direct arrangements between the Treasury or HMRC and the Director rather than formal regulations; money deposited into those accounts is ring-fenced from the Consolidated Fund; and amounts paid out of those accounts are not classified as the Director's own expenditure, ensuring separate accounting treatment.

Can HMRC make payments to authorised providers for administering Help-to-Save accounts?

Yes, HMRC may enter into commercial arrangements with authorised account providers, including National Savings and Investments or other bodies designated under the legislation. Under these arrangements, HMRC makes payments to compensate providers for the costs of offering and administering Help-to-Save accounts on behalf of the government.

How does paragraph 13 protect Help-to-Save account holders during a provider transfer?

The continuity principle ensures that when balances transfer between providers, the account holder's saving history and bonus entitlement carry forward. The two-year bonus calculation is based on the combined period across both providers. The transfer does not restart any time periods, so the account holder suffers no financial disadvantage from changing providers.

Savings (Government Contributions) Act 2017 section Sch 2 para 13

Transfers, Director of Savings, and provider arrangements

Section Sch 2 para 13 deals with the rules for transferring Help-to-Save account balances between authorised providers, the special position of the Director of Savings, and payments HMRC can make to account providers.

Treasury regulations can ensure that when a Help-to-Save account balance is transferred to a different authorised provider, the receiving account is treated as a Help-to-Save account and both accounts are treated as one continuous account.
If the Director of Savings provides Help-to-Save accounts, matters that could be dealt with by regulations can instead be handled through arrangements agreed between the Treasury or HMRC and the Director.
Money paid into Help-to-Save accounts provided by the Director of Savings is kept separate from the Consolidated Fund, and withdrawals from those accounts are not treated as the Director's expenditure.
HMRC may agree to make payments to authorised account providers (including National Savings and Investments or other designated bodies) in return for providing Help-to-Save accounts.

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