Accidentally paying into 2 ISAs in April

Mikeyorks

Tom_Biggs wrote: »

So just to confirm – Even though I have already paid £200 into my existing Barclays ISA, if I transfer the lot over to the new Santander ISA I will still be able to pay in up to £5440 to the new ISA and will not be breaking any rules by paying into 2 ISAs in one tax year?

Exactly right. Tens of thousands of people contribute part of their allowance to an ISA - transfer it - and then continue to pay the current year subscription into the ISA at the new provider.

In essence it's the same ISA ..... you've just moved it between providers. Perfectly valid.

ylesia

I did exactly this a few years ago (well hubby did). He had the first direct regular ISA, the 12 months were up in the July. I am fairly sure I posted here at the time as I was concerned that the money was stuck at the rubbish reduced rate. After being reassured here and then also phoning the HMRC to double check (I am a worry wart!) - he transferred all the ISA, including current year subscriptions to Halifax.

On the form you just have to fill out how much is from current year subscriptions and they just adjust your remaining allowance accordingly. Transfer went smoothly and further contributions made with no problems at all

Mikeyorks

Sylvia1982 wrote: »

Hello Tom Biggs,
Sorry to say this, but you can only put all monies into the Barclays ISA that you subscribe to prior to transferring it to your new Santander ISA. If you do not do this, you will not be able to use your full cash allowance for this current tax year.

In which case the requirement on the transfer form to specifically indicate - from the old to the new provider - if current year subscriptions (and their value) were included ..... would be pointless?

It's there in order the new provider has an element of control over how much more can be contributed following the transfer.

The HMRC guidance reads :

If the investor intends to subscribe to the ISA after the transfer the new ISA manager must obtain an ISA application form unless he already holds a valid application form (see paragraph 11.15a).

In that case the application form would be valid for

1. subscriptions made in the year of transfer, and
2. subscriptions made in each successive year following the year of transfer, in which the applicant subscribes to the ISA

Tom_Biggs

Thank you all so much for your replies. As a newbie to this forum I am overwhelmed by the response. I am now feeling very much assured! Tom

evenasus

There are always people on here to help.