SS ISA Cooling Off Period

[Deleted User]

Hi
Is there a cooling off period to close a SS ISA in regards HMRC.
If an ISA was opened and funded but the funds not invested, then the funds withdrew and the account closed inside 4 days. Would this be treated as a subscription?
I have read GOV.uk but can't find any reference to it.
Thanks

kuratowski

If you added funds, then it is treated as a subscription.

[Deleted User]

Found this from 2008 on this forum,
"Strictly investors who withdraw their subscriptions from an ISA by exercising their right to cancel have made a subscription to an ISA. But where the subscription is cancelled within the set period, investors will be treated as though they have not subscribed to an ISA."
Seems to be archived on HMRC now.

eskbanker

Deleted_User said:

Found this from 2008 on this forum,
"Strictly investors who withdraw their subscriptions from an ISA by exercising their right to cancel have made a subscription to an ISA. But where the subscription is cancelled within the set period, investors will be treated as though they have not subscribed to an ISA."
Seems to be archived on HMRC now.

That wording is in the current iteration of the published guidance, dated 2018, at https://www.gov.uk/guidance/how-to-open-an-isa-as-an-isa-manager#cancellation

However, it's in the context of the provider having cancellation Ts & Cs, did yours?

[Deleted User]

Sorry can't quote because of account limitations, but it seems so,

1.6.2 ISA and General Account

You may change your mind and cancel your ISA or General Account by informing us (by secure message

from your Account) within 14 calendar days from the date of your first investment. On cancellation,

any investments can either be sold or transferred into your name or the name of another nominee on

your behalf. If investments are sold, you may get back less than you invested because of market

value loss. Any applicable charges will apply until your Account is closed, and will not be refunded.

masonic

You would need to confirm with your ISA provider that they closed your account under the cooling off period, if that is in any way unclear, before subscribing to another S&S ISA this tax year (or subscribing to any type of ISA above your £20k allowance including what you've already paid in to your closes S&S ISA if it isn't flexible).

[Deleted User]

Have sent a message with following as stated on HMRC,

Where a subscription is cancelled within the set period, ISA managers should both: notify investors that the cancelled subscription does not count as a subscription to an ISA exclude the cancelled subscription from their annual return of information' 

[Deleted User]

For clarity, I meant sent the provider a message asking for confirmation.

dunstonh

Cancellation rights void the ISA subscription.  So, you are free to use it elsewhere.  It is important that the cancellation rights are exercised and not a sale and withdrawal that you would key in.

[Deleted User]

They should reply Monday with confirmation either way.
It's still within their 14 days, so I'll be pushing for my cancellation rights if that is not what it was.

masonic

Deleted_User said:

They should reply Monday with confirmation either way.
It's still within their 14 days, so I'll be pushing for my cancellation rights if that is not what it was.

In the mean time you can set up your new S&S ISA ready to receive money once you've confirmed your existing provider is playing ball.