ISA Missed Subscription form to be submitted - why?

Mabel2012

Because I have not saved new funds in an old Cash ISA for a year, I have been told to complete and return an ISA Missed Subscription form before I can save new funds in the new financial year. My provider tells me it is an HMRC regulation, but they can't tell me the rationale behind this. Why should HMRC be interested in the fact I can't afford to save money one year. I thought they only concerned themselves if I exceeded the annual £20K limit or opened more than one new account in a year.

Can anyone please explain or do I have to contact HMRC.

JGB1955

Are you sure it's not a RE-subscription form?  i.e. you have had an ISA with a provider, in the past, and now want to open another one with the same provider after a gap of over a year.  An example is - cbs1793-isa-resubscription-form.pdf (cambridgebs.co.uk)

eskbanker

It's perfectly normal - ISA providers will request completion of a reactivation form if you resume contributions after missing a year, if you search for 'isa reactivate' you'll find they all do it.

Having said that, I can't find any reference to this from a quick look at the regulations themselves, but it's nothing to worry about, and certainly not worth the hassle of trying contact HMRC about!

masonic

eskbanker said:

It's perfectly normal - ISA providers will request completion of a reactivation form if you resume contributions after missing a year, if you search for 'isa reactivate' you'll find they all do it.

Having said that, I can't find any reference to this from a quick look at the regulations themselves, but it's nothing to worry about, and certainly not worth the hassle of trying contact HMRC about!

It's covered at https://www.gov.uk/guidance/information-you-need-from-investors-when-they-apply-for-an-isa

Mabel2012

Thank you all for your replies.

I phoned my provider today for an explanation and was told the form is also called an ISA reactivation form and other names may be used depending on the provider. The reason: If I complete one form for Provider 'A' now, and I later complete one for Provider 'B', it flags up that I'm planning to save new funds with more than one provider in the same financial year. This is against ISA Regulations.

This is the first year that I am not transferring my ISA funds to another provider, so I'm not opening a new ISA account and completing all the online forms/paperwork for a new account. If I apply for a new ISA, I will not have to fill the Missed ISA subscription form as the declaration is already a part of the new application.