Dilemma after transfer

temp1234

Hi all

After a recent set of fund transfers triggered by the RDR change, I've found myself with around £40,000 worth of a single fund incorrectly put into a S&S ISA in the receiving platform instead of the unwrapped account where it should have ended up... there were various bits going all over the place and given their general incompetence I'm not surprised they got something wrong.

So this is a tempting situation obviously... how likely is it that this would ever be picked up? I doubt that the platform would now have any way of knowing, but HMRC?

Temp account created for asking morally repugnant question

xylophone

Honesty is the best policy - but you know that, don't you?:)

temp1234

Obviously, but we all have our price :P

Reaper

I imagine it is pretty easy for HMRC to detect it as you provide your National Insurance number for every ISA so adding up your contributions even over multiple providers is simple.

I suggest you own up then at least being the bank's mistake means it gets sorted out for free with no penalty. If they feel you are complicit in your silence that may not always be the case.

temp1234

It's not a contribution though! I agree that would be a red flag but it's simply a transfer.

Vortigern

http://www.hmrc.gov.uk/isa/faqs.htm#16

Q. What if I pay too much money into my ISAs?
A. If, by mistake, you put too much money into your ISAs the excess payments are invalid, and you are not entitled to any tax relief on income from investments purchased with the excess payments.

You should not try to correct this mistake yourself. Where appropriate, HMRC will contact you after the end of the year and tell you what action is necessary.

It doesn't exactly match your scenario, but the recommended (in)action seems appropriate.

Nixter

temp1234 wrote: »

Hi all
... there were various bits going all over the place and given their general incompetence I'm not surprised they got something wrong.

Is this incompetent platform Interactive Investor by any chance...?:p

le_loup

Nixter wrote: »

Is this incompetent platform Interactive Investor by any chance...?:p

No, surely not?

temp1234

Sorry to bump, but wondered if anybody else had any views on the likelihood of this being picked up!

Archi_Bald

You probably won't get more useful comments than post #6 but I see you haven't thanked the poster.

If you want to be certain what the HMRC will do, you could contact them and ask?

Contrary_clive

Most providers probably have exception reports to pick up this kind of thing. Should you not hear anything within the next few weeks I imagine you're likely to get away with it.