Help - Will I go to prison?
Rusty190
Forumite 83 Posts
In an effort not to get into a pickle with HMRC, I think I may well have waded into a quagmire.
Help me sort this out kind people.
In my defence, m'luds, my husband died in March and he was the money brains of the household.
I opened an ISA with Bank A in June, using this years full allowance.
In July, another ISA, with Bank B, came to maturity.
I split that ISA and topped up the new Bank A one and reinvested the balance with another Bank B ISA.
So far, so good?
On receipt of necessary bereavement documents etc, in August I opened an APS ISA with NS and I and have put monies which were in my late husband's ISA, into that.
On reading something today, I think I've broken the rules and opened 2 ISA's in 1 tax year.
Have I?
In my head, because the money for NS and I was money from an ISA, it was "old" money so I viewed it as a transfer.
If I have broken the rules, what do I do about it now?
In the meantime, I'll do nothing.
All help, gratefully received.
Help me sort this out kind people.
In my defence, m'luds, my husband died in March and he was the money brains of the household.
I opened an ISA with Bank A in June, using this years full allowance.
In July, another ISA, with Bank B, came to maturity.
I split that ISA and topped up the new Bank A one and reinvested the balance with another Bank B ISA.
So far, so good?
On receipt of necessary bereavement documents etc, in August I opened an APS ISA with NS and I and have put monies which were in my late husband's ISA, into that.
On reading something today, I think I've broken the rules and opened 2 ISA's in 1 tax year.
Have I?
In my head, because the money for NS and I was money from an ISA, it was "old" money so I viewed it as a transfer.
If I have broken the rules, what do I do about it now?
In the meantime, I'll do nothing.
All help, gratefully received.
0
Latest MSE News and Guides
Replies
But I can confirm with 100% certainty that you won’t be doing porridge anytime soon
my condolences for your loss
Rusty190 - did you fund the APS ISA via an ISA transfer process or was it a cash deposit ? In order for it not to contravene the £20k limit, it would presumably have needed to be an ISA transfer. Edit - from the answers below, it looks like my presumption was wrong !
Provided you've provided all the correct documentation in opening the APS ISA, which I assume you have otherwise it wouldn't have been opened and the allowance transferred, then I don't see you have broken any rules.
In any event, if the deposits are invalid, the worse that will happen is the interest from those deposits will be treated as if they weren't in an ISA.
Hence, the ISA was closed, monies transferred to my current account, APS ISA opened, then money transferred to there.
@isasmurf: When is that likely to become apparent and who is likely to tell me?
You are not allowed to put new money into more than one ISA of the same type in the same tax year.
I can't see any ISA rule the OP has breached.
I stand corrected about the fact that an APS ISA can be funded with cash rather than a transfer though, as I don't have experience of that particular type of ISA and had presumed that the rules would be the same as a normal Cash ISA (ie. that withdrawing money from a previous ISA and paying it into a new one would count towards the current tax year's allowance, which doesn't appear to be the case when paying into an APS ISA).
I've reported this thread as a vulnerable user so you don't get misled.
I have had some very sound advice from knowledgeable people on this forum in the past and sometimes it just helps to get the opinions of others.
I'm intrigued to know what being reported as "a vulnerable user" means.