Can't claim ISA bonus!

I don't know if anyone can help me that may have been in this position before? 

I'm in the process of buying an house with my partner and we both have HTB ISA's. But when it came to the point of using the ISA money our solicitor never asked us to close the accounts. All she said was "are you okay to sort transferring funds ready for exchange" therefore we literally transferred her the money from the accounts. 4 days later she rang to ask about our closing statement letters to which I was confused what she was on about as she never mentioned anything like this to us previously. So then we closed the accounts and got a statement. The solicitors now saying we can't claim the bonus because of accounts being closed incorrectly and that we will have to pay the cost to cover this as we are using it to pay some of the purchases price off. I have today sent over full statements from when the accounts were opened to when they were shut. On the statement it shows the only one outgoing is to the solicitors. Surely there is a way to claim the bonus?

Replies

  • eskbankereskbanker Forumite
    25.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Unfortunately, regardless of showing that the money was there, withdrawing the funds as a separate transaction prior to closure does lose the bonus rights, as explained in the scheme rules:
    6.9 Effect of withdrawing funds from a Help to Buy: ISA

    (A) If a Help to Buy: ISA Holder withdraws all of the funds in their Help to Buy: ISA otherwise than in a manner as described in clause 6.7 (Closing a Help to Buy: ISA – Closing Documents), from that time onwards, the Help to Buy: ISA Holder shall not be entitled to claim a Bonus in respect of such funds.

    (B) Each Eligible ISA Manager shall take reasonable steps to warn a Help to Buy: ISA Holder of the consequences of a withdrawal of the kind described in paragraph (A) above, in accordance with the requirements set out in the Help to Buy: ISA Manager Guidelines. 
    Although you've missed out on the bonus, you could try to argue that your ISA provider didn't adequately warn you of the implications of withdrawing, as required by 6.9(B) above, or make a case that your solicitor should have provided better guidance through the process, given that she should be familiar with having to deal with first time buyers, and see if you can squeeze some compensation out of one or both to make up some or all of the shortfall....
Sign In or Register to comment.
Latest MSE News and Guides

British Gas prepay meter users...

...to pay less for gas from 1 April

MSE News

The 'odd Easter flavours' thread 2023

What bizarre food stuffs have you spied?

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools