NISA limit - how can it be policed?

I have both cash and S&S ISAs, and have been diligent in not exceeding the yearly limit for either. But from July, when the individual limits are abolished, the task will become more difficult. Then, there will be a combined limit of £15k with no cap on either the cash or shares element. I can foresee my having to use a spreadsheet to keep an eye on it to ensure that the two together do not exceed £15k. But my question really is: how on earth will HMRC manage to do this? There is no linkage between my S&S ISA, held in an online platform, and my cash ISA. Provided I did not exceed the £15k limit in any one year in either S&S or cash, I simply cannot see how HMRC could make the connection.

NB - before I am pelted with moral outrage, please be aware that I am not looking to do this, merely asking the question.

Comments

  • noh
    noh Posts: 5,794
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    edited 17 April 2014 at 9:52AM
    ISA providers make returns to HMRC.
    The link is your National Insurance number.

    You have to tell your ISA provider your NI number on application.
    They report annual subscription amounts to HMRC linked to your NI number.
  • westy22
    westy22 Posts: 1,105
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    There is no linkage

    There certainly is - your NI number. Simple task for HMRC to check how much is contributed in total to a single NI number.
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  • westy22
    westy22 Posts: 1,105
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    noh - SNAP!
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  • amiehall
    amiehall Posts: 1,363 Forumite
    You have to provide your NI number to any ISA provider. This is how HMRC links the accounts to you. It's not really a different situation to the current one, just that the limits are higher. For example, last year you could have put £11k in S&S with £520 in cash if you had wanted to.

    I'm pretty sure they all get checked at the end of the year and HMRC write to you if there's a discrepancy.
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  • jimjames
    jimjames Posts: 17,532
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    It really is no different to the situation now. Only change is that the cash element can now be 100% of the allowance.
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  • p00hsticks
    p00hsticks Posts: 12,668
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    jimjames wrote: »
    It really is no different to the situation now. Only change is that the cash element can now be 100% of the allowance.

    Agreed.

    Already HMRC have to check that people don't open more than one CASH ISA in a year, or that anyone with both a cash and S&S ISA hasn't exceeded the overall contribution limit that year.

    It just requires each ISA provider to tell HMRC at the end of each tax year how much new money (as opposed to transfers) each person (or more accurately, 'NI number') has paid into their ISA that tax year, and HMRC will flag up if the limit for the NI number has been exceeded. The new limits shouldn't require any change to the process.
  • ericonabike
    ericonabike Posts: 334
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    Good point. Had forgotten we had to give NINo when applying...
  • david78
    david78 Posts: 1,654 Forumite
    I think it is likely when the new NISA regime comes in the rule of contributing to one cash ISA only and one S&S in a tax year will be removed.


    This is because one would be able to contribute to 2 cash ISAs simply by opening one cash ISA and one S&S ISA, then transferring the S&S ISA to a new cash ISA later in the year (meaning that you could have current year contributions in 2 cash ISAs with different providers).


    HMRC would have to allow for this possibility in their checks.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    david78 wrote: »
    I think it is likely when the new NISA regime comes in the rule of contributing to one cash ISA only and one S&S in a tax year will be removed.

    it certainly should be removed. i don't know if it will be, though.

    it is very similar to pensions, which you are allowed to contribute to any number of during the same tax year, with (various) limits on total contributions, which are checked by having the providers report back to HMRC.
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