If I open another cash ISA in same year with £3600, who's t know?

Green_Frog

If you've already used your maximum ISA allowance of £3600 at your bank (say, Lloyds), and then go to your other bank (say, NatWest), open another ISA with an additional £3600 there (in the same tax year), what is to stop you opening this second cash ISA account? Surely there must be many investors who will try to beat the taxman by operating more than one cash ISA account (with different banks, of course)?

YorkshireBoy

Green_Frog wrote: »

...what is to stop you opening this second cash ISA account?

Firstly, you sign a declaration stating you haven't already subscribed to a cash ISA this financial year. Secondly, providers send your account details, National Insurance number, etc to HMRC.

Surely there must be many investors who will try to beat the taxman by operating more than one cash ISA account (with different banks, of course)?

Only foolish ones, because tax evasion is a serious matter!

wheredoesallthetimego

You'll probably be ok for a while but eventually they'll (probably) reconcile the info.
If you do it then own up you'll just convert the second to an ordinary account and get taxed on the interest.
If they think you've made an honest mistake it might not be too bad.
If they think you're doing it deliberately then expect hefty fines, criminal record and probably a tax review and to be a marked man/woman forevermore.