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ISA subscription limit and interest?
Lemoncurd
Posts: 965 Forumite
At the end of March I transferred the limit of £5640 into an existing Cash Isa. I had not paid into any other Cash ISA during 2012/2013 but a few days later did open a new Cash ISA (but did not fund it) ready to transfer my old ones.
On the 5th of April I had a call from the (old) ISA provider asking me to verbally confirm that that I had not subscribed to any other cash ISA's and had not and would not contribute more than £5640 during that tax year. They told me that I had subscribed £5640.49, I questioned this and asked whether the 49p was interest, they confirmed it was. My understanding was that the interest on the ISA didn't count towards the subscription?
They have now sent a cheque for 49p stating that i had subscribed over the limit so they were returning it to me. I have checked my bank account and definitely only transferred £5640.
Can anyone explain what is happening here?
Thanks
On the 5th of April I had a call from the (old) ISA provider asking me to verbally confirm that that I had not subscribed to any other cash ISA's and had not and would not contribute more than £5640 during that tax year. They told me that I had subscribed £5640.49, I questioned this and asked whether the 49p was interest, they confirmed it was. My understanding was that the interest on the ISA didn't count towards the subscription?
They have now sent a cheque for 49p stating that i had subscribed over the limit so they were returning it to me. I have checked my bank account and definitely only transferred £5640.
Can anyone explain what is happening here?
Thanks
0
Comments
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Who is the ISA provider?
Interest does not count towards your annual allowance.
Neither do ISA transfers - - can you clarify, did you transfer (in ISA parlance), or deposit new money?0 -
Seem to remember another poster recently experiencing the same thing. That one was Halifax I believe. Is yours with Halifax? If it is there's a major problem there!0
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Interest doesn't count towards your allowance, and neither do "adjustments" made by banks when they mess things up.0
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Who is the ISA provider?
Interest does not count towards your annual allowance.
Neither do ISA transfers - - can you clarify, did you transfer (in ISA parlance), or deposit new money?
Barclays, sorry I meant that I deposited the annual allowance into this ISA, this was the only deposit I made into a cash ISA during the tax tear.0 -
Sounds like a case for a formal complaint. The least they should do is identify the person who decided that interest was an overpayment on your ISA allowance, and educate them accordingly.
They should of course also apologise, and compensate you for wasting your time with wrong information and actions.0
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