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Taxman ignores multiple ISA loophole!
Heinz
Posts: 11,191
Forumite
For once, HMRC appear to be doing the sensible thing - see thisismoney.co.uk
A consequence of the little-known loophole is that thousands of people aged 50 or over will be able to increase their Isa allowance from £3,600 to £5,100, when new limits are introduced in October, even if they are trapped in a fixed-rate Isa and their provider is unable to offer the new top-ups. All they have to do is open a new cash Isa with another provider and place the extra money in there.
They will be allowed to keep both Isas open at the same time as long as they stay within their overall cash Isa limit of £5,100, according to the HMRC guide for Isa managers, which conflicts with official advice offered to savers
Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.
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Comments
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See this is pathetic. If they turn a blind eye to this, what next, paying over the subscription amount!?0
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Another reaction might be, "Don't look a gift-horse ....."See this is pathetic. If they turn a blind eye to this, what next, paying over the subscription amount!?Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.0 -
Has anyone been pulled up for more than 1 ISA in a tax year with different providers? They may have turned a blind eye for years.I beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
Yes, but not by HMRC, by Lloyds TSB's ISA compliance department (erroneously - Icesave had put a tick in the wrong box when transferring an ISA to LTSB) - it took nearly a year and a lot of hassle to sort out, a large amount of loss of interest (which couldn't be reclaimed as Icesave had gone ***s up in the intervening period) and endless calls & letters to LTSB, FOS, etc.Has anyone been pulled up for more than 1 ISA in a tax year with different providers? They may have turned a blind eye for years.
As I have replied elsewhere - if anyone wishes to be the first to test out the Daily Mail's take on this, please let us all know how it goes.0 -
They have always done this. There's nothing new in the This is money article.
I remember a man from HMRC (it may have been the inland revenue back then) on the telly saying they would be lenient if people paid in too much or opened more than one "mini cash ISA" (as they were called then), as long as the mistake was genuine and it did not happen in two consecutive years.
I've never made a mistake like this, but its useful to know. I wonder how many people make this mistake every other year!0 -
I heard this point mentioned on Moneybox today
[listen again at 13 minutes 55 seconds] and I missed it because I thought 2 ISAs was never allowed. But having re-listened they actually do say that no action would be taken provided the overall annual limit is not breached.......under construction.... COVID is a [discontinued] scam0 -
The wording used on Moneybox doesn't clearly explain what "repairable" means - indeed it says "the Revenue won't penalise you".
My reading of the ISA Guidance is that in fact repairable means that they will allow the second ISA to stand, but that interest paid prior to the date of repair becomes taxable.
I think that the Mail is stirring up an unnecessary can of worms by encouraging people to think that it is OK to have two ISA in the same year when it is at best a technical breach of the rules.0 -
Has anyone known the Mail to be trustworthy on anything it prints?
What is disappointing is that Money Box did not do a bit more research ... quoting an agency release is not exactly helpful.0 -
Surely from what the article says its only for this tax year - and will allow over 50's to up their ISAs for the year even if they have a fixed rate that won't allow additions0
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