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ISA Transfer Delays -- Closed It & DIY ?
alared
Posts: 4,029 Forumite
http://www.dailymail.co.uk/money/article-1215395/Savers-Isa-transfer-loophole.html
Savers find Isa transfer loophole
But the rules it gives to the banks and building societies also say that savers can still retain the tax-free status on their money by pulling it out of a cash Isa, closing it and transferring it to another provider's Isa as long as they do it only once in a tax year. Do it twice, and your interest will be taxed because your Isa will be declared invalid.
HMRC has told banks and building societies it will not come down on savers who open two cash Isas in a year, as long they stay within the annual subscription limits.
Savers find Isa transfer loophole
But the rules it gives to the banks and building societies also say that savers can still retain the tax-free status on their money by pulling it out of a cash Isa, closing it and transferring it to another provider's Isa as long as they do it only once in a tax year. Do it twice, and your interest will be taxed because your Isa will be declared invalid.
HMRC has told banks and building societies it will not come down on savers who open two cash Isas in a year, as long they stay within the annual subscription limits.
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Comments
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OK, you try it first ... I trust you more than the Daily Mail!
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Err, really? So A.N.Other ISA provider is going to let you open an ISA with £40K that you claim you pulled out of an account elsewhere. I'm not sure that's going to wash.
(Is this something to do with Icesave ISAs, where it is necessary to pull out the money to a non-ISA account before paying it back in?)0 -
Nothing to do with Icesave ISAs. It's called ISA self-repair. Read the guidelines if you're curious.0
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