isa

postingalwaysposting

Hi I set up an isa just under a year ago and transfered mony usuing my online banking into it. Then i purchased a high value item in august and the account has been stood empty since then. I today tried to deposit a high value lump sum into the account and it says i will be over my yearly limit.

When set up i was told it works as a tax yer and each year i can deposit under £3000 but once i hit that amount even if i take out and put back in i cant add anymore. This limit will then start back up in the new tax year whatever the balance is.

So why is this message now poping up? in this tax year i havent even put in half that amount :rolleyes:. Can one of you help or will i have to phone the dreaded bank :mad:

grumbler

If you are sure that you transferred money into ISA before April 2005, I think nobody can help you here . Phone the bank ...

P.S. Just re-read your post:

postingalwaysposting wrote:

... I today tried to deposit a high value lump sum into the account and it says i will be over my yearly limit...in this tax year i havent even put in half that amount

Could you be more specific about 'high value lump sum' and the previous deposit this tax year?

dunstonh

My guess is that you transferred the funds rather than transfer the ISA. The former would use your ISA allowance, the latter wouldnt. Only guessing though because there isnt enough info.

postingalwaysposting

hi dunstonh it was £1000+ but i tried just tranfering £1 and it wouldnt let me do that. Just phoned the bank and they have froze the account So apparantly i have to go to a bank and sign a form to open it again. Another security measure. So all ok now and i am going monday to open it again :j thanks again grumbler and dunstonh

dunstonh

Be careful about opening it "again". If again relates to this tax year, then the second one will be voided in about 12-18 months time and you will be charged backdated taxed on the savings.

What you really need to do is get some clarification as to what happened and why a £1000 contribution is showing as using up your £3000 personal allowance.

postingalwaysposting

This infomation I got over the phone through an account manager, all that happend was the bank put a frezze on the account due to it standing there unused and empty. She explained that if i go and sign a re-opening form, i then reopen the account. They will then send me a statement as to what i can put it before april (with regards to how much i can put in the account out of the £3000 in a tax year). Then as from april the 6th 06 - april 07 i can then put a futher £3000 in that will be untaxed.

Now why it was showing as using up the allowance they said was because they froze the account so no matter how much i put in if would have showed over the limit. I am going to go up to my branch on monday and sort it all out but it should be fine .