Exceeded ISA Limit by £1?

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joe2cool
joe2cool Posts: 4,121 Forumite
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in ISAs & tax-free savings
Hi it looks like I've exceeded the ISA Cash limit by £1,what will happen?

Thx
joe2cool
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  • Saints2011
    Saints2011 Posts: 933 Forumite
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    "If, by mistake, you put money into more than one ISA of the same type in the same tax year the payment into the second ISA is invalid, and you are not entitled to any tax relief on investments held in the second ISA."

    From HMRC
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  • joe2cool
    joe2cool Posts: 4,121 Forumite
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    I've gone over the £5340 limit for one ISA

    Thx
    joe2cool
  • Derivative
    Derivative Posts: 1,698 Forumite
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    Saints2011 wrote: »
    "If, by mistake, you put money into more than one ISA of the same type in the same tax year the payment into the second ISA is invalid, and you are not entitled to any tax relief on investments held in the second ISA."

    From HMRC

    I'm not sure how this applies to the OP's question?

    For £1, I wouldn't worry about it. If you must - perhaps ring HMRC and ask them, but I doubt that it'd be worth them chasing up (what's the tax on the interest on £1 compounded over fifty years? not much)
    Said Aristippus, “If you would learn to be subservient to the king you would not have to live on lentils.”
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  • joe2cool
    joe2cool Posts: 4,121 Forumite
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    edited 31 March 2012 at 9:44PM
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    OK I just thought the bank might inform you & take out the excess perhaps.
    I'll leave it then for the time being. It must happen a lot because not all banks show you how much you've got left to invest.

    Thx appreciated
    joe2cool
  • brightonman123
    brightonman123 Posts: 8,532 Forumite
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    might need to amend application, or do a new one.. but hurry!
    Long time away from MSE, been dealing real life stuff..
    Sometimes seen lurking on the compers forum :-)
  • joe2cool
    joe2cool Posts: 4,121 Forumite
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    No its not a new application
    joe2cool
  • dunstonh
    dunstonh Posts: 116,383 Forumite
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    You will use up your get out of jail free card and HMRC will tell you not to do it again.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
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    dunstonh wrote: »
    You will use up your get out of jail free card and HMRC will tell you not to do it again.

    Can you pay in £5340 twice and get to keep the whole amount ISA'd if you only do the 'mistake' once?
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
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    taking a guess at joe2cool's original post he has topped upan existing isa and accidentally gone over the allowanece by one pound -he's not opened a second cash isa like on poster seemed to hev surmised.

    in this instance i would imagine the £1 will debited from the account and returned to the depositor.

    or maybe the HMRC will get on to joe2cool and slap a huge fine and jail sentence on him - only kidding :-)
  • MoneySavingUser
    MoneySavingUser Posts: 1,667 Forumite
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    ffacoffipawb wrote: »
    Can you pay in £5340 twice and get to keep the whole amount ISA'd if you only do the 'mistake' once?
    no .
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