Isa limit

£££££££

Hi what happens if I accidentally pay more than my allowance into a cash isa?

Archi_Bald

Depending on your provider, you won't be allowed to deposit more than the annual allowance. If you are, the HMRC will catch up with you after the end of the tax year. How painful or otherwise that catch up will be would depend on the size of your overpayment.

thenudeone

If it's all in 1 bank/BS, they will simply refund the difference straight away.

If you have opened and funded (and kept open) 2 cash ISAs in 1 year, it will get discovered because HMRC matches up NI numbers for all ISAs, so you will get a nice "don't do it again" letter (1st time) or not so nice one (2nd time). The tax-free status of the second ISA would probably be removed, dating back to account opening.

£££££££

Thanks. I've made a transfer tonight and then just realised there is a limit to the isa. Should I try to cancel the transfer? Or will it just bounce back?

eskbanker

£££££££ wrote: »

Thanks. I've made a transfer tonight and then just realised there is a limit to the isa. Should I try to cancel the transfer? Or will it just bounce back?

Are you talking about 'transfer' in the sense of moving funds from one cash ISA to another or from a non-ISA account? If the former, you may be OK if it's funds from previous years, the allowance only relates to subscriptions within one year, so you can have much more than that in total....