Britannia Building Society ISA

scoobes19

Hello All,

I hope someone can advise me.

I have been with the Britannia for several years now, but my ISA has been inactive, basically, I have always shopped around for the best rate and Britannia wasn't! Anyway, Britannia award points for loyalty, and I have been receiving a cheque each year, usually 20 quid or something, not megabucks, however, this year, they have paid the money direct into my ISA. As I have been paying into another ISA this year, I don't know if this is something I should be worried about.

Has anyone else come across this? Should I be worried?

Many thanks

Scoobes

Baldur

Have you contacted them about it?

scoobes19

I haven't actually. I will try and pop into the branch tomorrow and make some enquiries.

RayWolfe

Not a problem. It is like interest. In fact it IS interest, delayed until March each year.

Baldur

RayWolfe wrote: »

Not a problem. It is like interest. In fact it IS interest, delayed until March each year.

If that's the case, the OP appears to have missed out on previous years' tax-free interest if, as suggested, it has always been paid by cheque rather than being added to the ISA balance.

RayWolfe

I don't disagree and when I had ISAs with Brit. I got cheques.
However the point that the OP was enquiring about, - does this mean a 2008/9 ISA has been created by paying this into an ISA - is not correct because the payment IS deferred interest.

Baldur

RayWolfe wrote: »

I don't disagree and when I had ISAs with Brit. I got cheques.
However the point that the OP was enquiring about, - does this mean a 2008/9 ISA has been created by paying this into an ISA - is not correct because the payment IS deferred interest.

I wasn't querying your post, Ray - merely musing on the Britannia's practise and the fact that their Cash ISA savers would obviously be losing out on at least a small amount of ongoing tax-free interest through the cheque payment(s).

martinman3

scoobes19 wrote: »

Hello All,

I hope someone can advise me.

I have been with the Britannia for several years now, but my ISA has been inactive, basically, I have always shopped around for the best rate and Britannia wasn't! Anyway, Britannia award points for loyalty, and I have been receiving a cheque each year, usually 20 quid or something, not megabucks, however, this year, they have paid the money direct into my ISA. As I have been paying into another ISA this year, I don't know if this is something I should be worried about.

Has anyone else come across this? Should I be worried?

Many thanks

Scoobes

Following the ruling in 2007 by HMRC they treat the Member Reward like tax-free interest.
http://www.financemarkets.co.uk/2007/09/07/britannia-challenges-hm-revenue-customs-over-tax-exemption-status/

scoobes19

Thank you to everyone that's replied. You've all been really helpful