Problems transferring to an inheritance ISA - Barclays "breaching HMRC timescales for the transfer"?

itm2

My Mum has been trying to use my late father's ISA allowance for an Additional Permitted Subscription Inheritance ISA with the Nationwide. My father's Barclays ISA was closed last July, when probate was granted, but my mother wants to use the associated ISA allowance to transfer to an Inheritance ISA with Nationwide. She sent the relevant form to Nationwide at the beginning of September, with the account number of my father's Barclays ISA account. After chasing but hearing nothing for more than 2 months, the Nationwide have finally responded with this:
"This was unfortunately rejected as Barclays breached HMRC timescales for the transfer (30 Days)".
I have no idea what the implications of this are. The Nationwide have told my mother that she needs to re-apply, but if Barclays keep failing to respond then it seems a little pointless. Does anyone have any suggestions for how best to resolve this?  

Alexland

If the Barclays ISA was closed (and ISA wrappers end on death anyway) then the money must now be sitting in a non-ISA account so the HMRC targets for ISA transfer (15 working days for a cash ISA and 30 calendar days for a non-cash ISA) are not relevant.

Nationwide's Inheritance ISA should be providing her an Additional Permitted Subscription allowance for at least 3 years following the death and she can make these contributions by cheque, payment from another Nationwide account or asking the old ISA provider to send the money across. It is not a traditional ISA transfer where the gaining provider takes a lead as the money is no longer in an ISA.

https://www.nationwide.co.uk/support/support-articles/manage-your-account/isa-inheritance/isa-inheritance-setting-up#xtab:twistyitem-step3-start-saving

itm2

Alexland said:

If the Barclays ISA was closed (and ISA wrappers end on death anyway) then the money must now be sitting in a non-ISA account so the HMRC targets for ISA transfer (15 working days for a cash ISA and 30 calendar days for a non-cash ISA) are not relevant.

Nationwide's Inheritance ISA should be providing her an Additional Permitted Subscription allowance for at least 3 years following the death and she can make these contributions by cheque, payment from another Nationwide account or asking the old ISA provider to send the money across. It is not a traditional ISA transfer where the gaining provider takes a lead as the money is no longer in an ISA.

https://www.nationwide.co.uk/support/support-articles/manage-your-account/isa-inheritance/isa-inheritance-setting-up#xtab:twistyitem-step3-start-saving

Understood. The cash from Dad's Barclays ISA is sitting in a non-ISA account (in Mum's name) at the Nationwide. The problem seems to be that Barclays did not respond to the Nationwide's request/correspondence within the required time period. So there seems to be some sort of stalemate.
????

Alexland

So is she still at Nationwide's step 2 registering the ISA allowance before Nationwide have confirmed the full contribution allowance on the new account? This seems to be the only point Nationwide would try to contact Barclays. If so then ask Nationwide to try again.

itm2

Alexland said:

So is she still at Nationwide's step 2 registering the ISA allowance before Nationwide have confirmed the full contribution allowance on the new account? This seems to be the only point Nationwide would try to contact Barclays. If so then ask Nationwide to try again.

Yes I guess that's true. I've asked Nationwide to try again but they are telling Mum that she needs to send another application.
????

Alexland

Maybe they closed the new ISA as not funded in time. In which case yes she needs to try again.

itm2

No they have opened the Inheritance ISA, and have transferred in the other ISA which was requested (my late father's Nationwide ISA). So it's live, but they are not able to process the 2nd allowance (from Dad's Barclays ISA). Mum submitted two separate application forms - one for the Nationwide ISA allowance and one for the Barclays ISA allowance.

Alexland

In step 2 they are supposed to "write to you to confirm your total inherited ISA allowance" before any money transfers. If they did this it could be as simple as her just transferring the Barclays money into the account.

itm2

Alexland said:

In step 2 they are supposed to "write to you to confirm your total inherited ISA allowance" before any money transfers. If they did this it could be as simple as her just transferring the Barclays money into the account.

There's no option in the web account for her to transfer funds into the Inheritance ISA (from anywhere). They also didn't send a letter before transferring the funds for Dad's Nationwide ISA allowance (although we needed to chase them for more than 2 months before they did it)

Alexland

So it 's not ideal but sounds like they want her to request the additional allowance from the Barclays account again.

itm2

Alexland said:

So it 's not ideal but sounds like they want her to request the additional allowance from the Barclays account again.

Yes that's exactly what they are asking. But we've made the point that Barclays could simply fail to respond again, in which case how many times does she need to re-apply before Nationwide accept that this isn't the best way to proceed? Up to now they don't seem to be capable of offering any other way forward.
If they still have Mum's original application, why don't they continue to badger Barclays for whatever they require from them? We don't understand what this HMRC 30 day limit is all about.