Santander blocked my cash ISA due to period of non subscription

WGGRANDAD

I had transferred £2000 into my cash isa in march 2013. I have received today in the post a letter saying because I have not paid into my cash isa since march 2011 I have got to fill in a new declaration form, they have withdrawn the £2000 and have sent it me as a cheque. They have also deducted £0.36 for the tax man !!

In march 2013 I was blocked from transferring the money from my bank account to the isa, but when I rang Santander they removed the block and I was able to transfer the money.

I have searched the Internet regarding this HMRC rule but have drawn a blank. Thanks.. WG

Macca83_2

Yeah that sounds about right. If you haven't subscribed to your isa for a number of years then the isa goes 'fallow' and you need to re-register. Id imagine it allows hmrc to track your contributions

david78

You have to either pay money into an account each year, or, if you miss a year without paying in, you need to make a fresh application or renewal when you deposit new money. Maybe someone can find the rule and post a link.

This rule has always been there. Its a bit tough you have missed out on using your 2012 allowance though. You will need to make a fresh renewal for 2013 if your adding to your account. Or you can open a new account.

ses6jwg

they cant take the block off on the phone

it requires a form to be signed.

WGGRANDAD

I have found this document on the HMRC web site hmrc.gov.uk/isa/isa-guidance-notes.pdf Chapter 4 is all about making an application. 4.6 gives an example of what happens if a subscription is not made in a tax year.
But interesting to me is an application can be made over the phone ref 4.18
This is what I did back in march 2013 Because I remember the questions asked are the same as the check list ref 4.42 and the guy on the other end of the phone had to read it all back to me. Will have to see what Santander say tomorrow.

fiesta04

Surely the easiest solution is to just open a new ISA for 2013-2014.

F4

RoxRoxBling

david78 wrote: »

You have to either pay money into an account each year, or, if you miss a year without paying in, you need to make a fresh application or renewal when you deposit new money. Maybe someone can find the rule and post a link.

This rule has always been there. Its a bit tough you have missed out on using your 2012 allowance though. You will need to make a fresh renewal for 2013 if your adding to your account. Or you can open a new account.

Don't want to ask a silly question but......
If you've got a 3 year fixed isa, if after maturing you wanted to make a deposit or transfer would the account be blocked? Requiring paperwork to open it?

Reaper

RoxRoxBling wrote: »

Don't want to ask a silly question but......
If you've got a 3 year fixed isa, if after maturing you wanted to make a deposit or transfer would the account be blocked? Requiring paperwork to open it?

They should never expire a fixed term account until well after the completion date. However from memory I believe in the past poor policies at ICICI bank meant it did sometimes happen.

innovate

RoxRoxBling wrote: »

Don't want to ask a silly question but......
If you've got a 3 year fixed isa, if after maturing you wanted to make a deposit or transfer would the account be blocked? Requiring paperwork to open it?

You are quite unlikely to want to do that since the interest rate is more than likely a lot less than you can get elsewhere.

At the end of the fixed term your account will roll over into an ISA Saver Variable without bonus, currently paying 0.50% tax free/AER variable

However, if you wanted to make deposits into that account, you might have to re-activate it.

WGGRANDAD

Rang Santander and they have said they will put the £2000 back in my isa plus interest as they seem to have missed my telephone application in march 2013

funkyhitman

If anyone needs to unblock their account:

Source: Santander.co.uk...

If you haven't paid into your account for a full tax year: you will need to complete a Cash ISA declaration form. Please return the form to us using the address below:

ISA Customer Services,
PO Box 1112,
9 Nelson Street,
Bradford, BD1 9NR