ISA Oversubscribe

SallyG

What happens if I subscribe to two different cash ISAs in the same tax year by mistake?
Who would alert me to my error?
Is there a penalty?

Stompa

http://www.hmrc.gov.uk/isa/faqs.htm#15

ticktack_2

SallyG wrote: »

What happens if I subscribe to two different cash ISAs in the same tax year by mistake?
Who would alert me to my error?
Is there a penalty?

When you apply to open a cash ISA, they take your N.I. number and check you haven't deposited into any cash ISA in the current tax year. So unless you give a false N.I. number, it's not likely you'll subscribe to two cash ISAs in the same year.

MoneySaverLog

It probably wont stop you from subscribing to 2 ISA's but what may happen is HMRC will be informed at the end of the tax year and you will get a warning letter (slapped wrist) from them.

I believe they operate a 2 strikes and your out, so do it again and they come down on you like a tonne of bricks.

The link above is good advice on HMRC site

ben501

MoneySaverLog wrote: »

come down on you like a tonne of bricks.

It's not just me who dislikes it then.

Early day motion 2893

Millie_Millsters

MoneySaverLog wrote: »

It probably wont stop you from subscribing to 2 ISA's but what may happen is HMRC will be informed at the end of the tax year and you will get a warning letter (slapped wrist) from them.

When I accidently did this in 2009, I received a letter from HMRC within a month or so and the bank just voided the 2nd ISA and sent my money back.