original Virgin Money Help to Buy ISA

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wallofbeans
wallofbeans Posts: 1,397 Forumite
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in ISAs & tax-free savings
Hello,

I set up a Virgin Money Help to Buy ISA when they first came out and were at 3%. I have paid a reasonable amount of money into it over time, but have now changed circumstances and don't think I qualify for the bonus anymore.

My partner owns a property but I never have. It has become the smartest move for me to be added to the deeds of that property, which I assume means I no longer qualify for the help to buy ISA as I now partly own a property.

My question is - Is the Virgin Money ISA still at 3% or will it have dropped to the current lower rate? And is it worth me keeping it as a savings account or should I just move the money elsewhere to get the most from it?

Thanks,

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  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    edited 7 March 2018 at 1:57PM
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    Once you're no longer eligible for a HTB ISA (by virtue of having an interest in a property), you should close it, however tempting the interest rate is, as per clause 8.11(B) of the scheme rules:
    Help to Buy: ISA Holders – truthful and accurate information

    Each Help to Buy: ISA Holder shall [...] take steps to correct any statement, form, declaration, confirmation or any information provided by them under or in connection with the Scheme Rules, which is untruthful, incorrect or misleading in any material respect.

    Edit: just to join up the dots, clause 6.3 obliges ISA managers to revalidate eligibility at least annually, although whether this actually happens is another story....
    Each Eligible ISA Manager shall, at least once each year, send a written communication to each Help to Buy: ISA Holder who holds a Help to Buy: ISA that it manages, reminding each such Help to Buy: ISA Holder of the criteria listed in Schedule 1 (Customer information) and that each Help to Buy: ISA Holder must continue to satisfy those criteria in order to participate in the Help to Buy: ISA Scheme and apply for the payment of a Bonus.
  • wallofbeans
    wallofbeans Posts: 1,397 Forumite
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    eskbanker wrote: »
    Once you're no longer eligible for a HTB ISA (by virtue of having an interest in a property), you should close it, however tempting the interest rate is, as per clause 8.11(B) of the scheme rules:

    Oh, that's a shame. I thought it might just mean I couldn't claim the extra, but it could be kept as a savings account.

    EDIT: I've not heard from them once since opening it. So they haven't been doing that at all.
  • wallofbeans
    wallofbeans Posts: 1,397 Forumite
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    I've just seen this thread, which tells someone in a similar situation to me to keep the Help to Buy ISA. Are they wrong?

    http://forums.moneysavingexpert.com/showthread.php?t=5604396
  • Alexland
    Alexland Posts: 9,653 Forumite
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    wallofbeans wrote: »
    I've just seen this thread, which tells someone in a similar situation to me to keep the Help to Buy ISA. Are they wrong?

    http://forums.moneysavingexpert.com/showthread.php?t=5604396

    That's an interesting thread. I am not sure why Ed-1 advised to keep the HTB ISA if the poster may have owned property. It's not clear if the poster actually owned the inherited property or they were receiving a cash distribution from the estate which was disposing of the property. If Ed-1 is reading this maybe he could clarify?

    I am with eskbanker on this one- if you own property you do not qualify to hold the HTB ISA so it should be closed.

    Alex
  • wallofbeans
    wallofbeans Posts: 1,397 Forumite
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    Alexland wrote: »
    That's an interesting thread. I am not sure why Ed-1 advised to keep the HTB ISA if the poster may have owned property. It's not clear if the poster actually owned the inherited property or they were receiving a cash distribution from the estate which was disposing of the property. If Ed-1 is reading this maybe he could clarify?

    I am with eskbanker on this one- if you own property you do not qualify to hold the HTB ISA so it should be closed.

    Alex

    I got the impression from their post that they did now own a property. So Yeah, it would be interesting to find out why that advice was given as my circumstances are similar.

    Thanks for the replies though, really helpful!
  • wallofbeans
    wallofbeans Posts: 1,397 Forumite
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    Can anyone else help clear up any doubts I have about closing this account?
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    What doubts do you have, given that I've pointed you in the direction of the rules on this already, which clearly confirm your original assumption that "I no longer qualify for the help to buy ISA as I now partly own a property"?

    Whether or not those rules are actually enforced by Virgin and/or HMRC is a different matter, so perhaps someone might come along and post that they got away with it if that's what you're waiting to hear....
  • wallofbeans
    wallofbeans Posts: 1,397 Forumite
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    eskbanker wrote: »
    What doubts do you have, given that I've pointed you in the direction of the rules on this already, which clearly confirm your original assumption that "I no longer qualify for the help to buy ISA as I now partly own a property"?

    Whether or not those rules are actually enforced by Virgin and/or HMRC is a different matter, so perhaps someone might come along and post that they got away with it if that's what you're waiting to hear....

    I don't want to get away with it. If it should be closed, I'll close it. But I'm waiting to hear if that depends. Much like the person who was advised to keep it on the other thread, I didn't buy a property. And I certainly didn't have one when I opened the HTB ISA.

    So perhaps there are circumstances when I don't have to close it. What I don't want to happen, is to find out I could have kept it after I've closed it.
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