Removal of Mini/Maxi ISA distinction

savingforoz

Am I right in thinking that if & when this comes in, my Mini and Maxi S & Shares ISAs held via Hargreaves Lansdown will become one stocks and shares pot and I can then change my standing order (which now funds the Maxi only) to fund those funds in the old style Mini pot as well?

Do we know when it comes in - is it from 6/4/07 or has no firm date been set yet?

As ever, help gratefully appreciated!

dunstonh

Am I right in thinking that if & when this comes in, my Mini and Maxi S & Shares ISAs held via Hargreaves Lansdown will become one stocks and shares pot and I can then change my standing order (which now funds the Maxi only) to fund those funds in the old style Mini pot as well?

I dont know what HL do but once a tax year passes the distinction between MINI and MAXI goes. It is no longer of any importance or consequence. What is of consequence and will remain so is the tax year of contribution.

I know Fidelity FNW show their ISAs on a tax year basis and its possible that is how HL do it (hopefully someone who uses them can confirm). Others though show them as one bulk i.e. Cofunds and Selestia.

Do we know when it comes in - is it from 6/4/07 or has no firm date been set yet?

Announcement due in February. It may come too late for 07/08 but you never know. The Govt have a history of changing things at late notice on ISAs.

savingforoz

Thanks dunstonh

cheerfulcat

savingforoz, HL are the only providers I know of who keep the mini and maxi S&S ISA separate - it is very irritating. The only solution I know of is to move to a broker who doesn't do that ( Selftrade is one but AFAIK they don't offer the option of a regular contribution ).

savingforoz

Thanks cheerfulcat, that is a real pain as otherwise HL are excellent. I've emailed them for clarification, but surely if & when the mini/maxi distinctions are lifted the problem will go away anyway?

cheerfulcat

surely if & when the mini/maxi distinctions are lifted the problem will go away anyway?

Not necessarily. As dh says, the distinction by law between minis and maxis is gone after the year of subscription anyway; it is HL's policy to maintain it ( one of the reasons I moved away from HL ). You could get round this by moving the ISAs away to Selftrade for amalgamation and then back to HL as one ISA. HL will charge for the transfer but ST should cover the fees ( they used to but best to check before doing the switch ).

Alternatively you could phone HL and ask them why they don't combine the two like everyone else does...and ask them what their plans are.

savingforoz

Thanks cheerfulcat, I got a standard reply from HL saying "you can't fund a mini and maxi in the same tax year", so I have queried this and asked what will happen if/when the mini/maxi disctonction is removed.

Much as I like HL, this is making me think again about them. I do want to fund all my funds, whichever ISA they're in, if possible.

Will report back when i get a reply!

savingforoz

"Once the proposed changes have been implemented, the MAXI /MINI ISA distinction will be abolished. Until then, Hargreaves Lansdown will keep the MAXI/MINI distinction. However, if you would like to consolidate ISAs from previous years, either into a MAXI or MINI, then this can be done by sending us a written instruction. That way you will be able to continue to invest in all previous funds, whilst still only investing in a MAXI OR a MINI."

This is the reply that I had from Hargreaves Lansdown - so it looks like I can merge my 2005/06 mini ISA with the maxi 2006/07 one - will write in as they say and request this. Result! - I really didn't want to move from HL as I do find them very good.

cheerfulcat

Good result, savingforoz! They must have changed their systems because when I wanted to amalgamate a maxi and a mini they wouldn't allow it ( goodness knows why not ).

savingforoz

Grr!!!:mad: Wrote to HL along the lines indicated above, requesting consolidation of my funds, only to get a letter today saying that I can't do it, and to write in again shortly before the start of the new tax year. So one person at HL is saying one thing, and somebody else something completely different.

Will call them on Monday and talk it through with them....

mroller

Any news from HL?

I asked them some time ago to lump my Mini and Maxi Shares Isa and they told me that they can't.

The treasury announced today that the new rules will take effect in April 2008, I dont want to wait for another year to merge my Isa :-(