More than 1 ISA

kevin52

I invested £4,000 in an ISA with Birmingham Midshires early in this tax year. Shortly afterwards I got access to the other £1,640 and also invested that with BM. I was speaking to them on the phone about delayed letters, and mentioned in passing that this was my second account and was told firmly that I can't have two accounts as it was against Government rules. I find it hard to believe that the government really cares whether I have 1 account with £5,640 in or if it is split into separate accounts. Can anyone advise? The was emphatic that this was not a BM rule.

innovate

BM are right, they are not making the rules. It's the HMRC that does.

http://www.hmrc.gov.uk/isa/faqs.htm#8

There are only one or two ISA providers who do provide people with the option to put their annual allowance into more than one of their pots, but BM are obviously not one of them.

Presumably there was a reason why you couldn't add the £1,640 to the £4,000?

Mikeyorks

kevin52 wrote: »

The was emphatic that this was not a BM rule.

HMRC also have a requirement that ISA providers should be able to validate that customers don't over subscribe.

Whilst you haven't - it does appear you have contributed to 2 separate ISAs with a provider who doesn't have the capability of holding multiple accounts within an ISA wrapper. So they should have stopped you - knowing you were a current year subscriber - at the point you tried to subscribe the £1640.

However - as you are within the cash limit ....... I would simply leave it alone.

bonzer

I'd phone the HMRC ISA helpline and check what to do about it:

http://www.hmrc.gov.uk/spss/contactsav.htm

Mikeyorks

bonzer wrote: »

I'd phone the HMRC ISA helpline

........ one of the last ports of call, these days. Once upon a time they were knowledgeable and highly regarded. But now appear to have been diluted and swept into the same mediocrity as the rest of the help lines.

bonzer

Maybe, but if you think you've made an ISA rules mistake, you should tell HMRC.