subscribed to 2 ISA accounts in this tax year by mistake

fidaa

After some advice please:

Opened up a new ISA account with provider A in mid april this year and paid in money from my bank and also previous years ISA account.

Opened up another new ISA account in May with provider B and funded that with transfer from previous years ISA amounts. However, I have accidentally paid in some new money from my bank into this account also.

Rang up provider A who suggested transfer from Provider B into Provider As account for the money paid in this year. I am assuming I can leave previous tax years money in provider B still?

Is there anything else I need to do?

eskbanker

If both providers allow partial ISA transfers then initiating a transfer via Provider A of this year's money from B should resolve the matter, yes.

fidaa

eskbanker said:

If both providers allow partial ISA transfers then initiating a transfer via Provider A of this year's money from B should resolve the matter, yes.

would HMRC need to be told?

fidaa

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

eskbanker

fidaa said:

eskbanker said:

If both providers allow partial ISA transfers then initiating a transfer via Provider A of this year's money from B should resolve the matter, yes.

would HMRC need to be told?

No.

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

fidaa

eskbanker said:

fidaa said:

eskbanker said:

If both providers allow partial ISA transfers then initiating a transfer via Provider A of this year's money from B should resolve the matter, yes.

would HMRC need to be told?

No.

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

Thanks but challenge is that  provider A is also a fixed account so will not allow partial transfers OUT.

I have another account which is with ProvideR C that is a variable account, Could I transfer full amount from provider B to C and then ask  provider A to do partial transfer IN from provider C?

eskbanker

fidaa said:

eskbanker said:

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

Thanks but challenge is that  provider A is also a fixed account so will not allow partial transfers OUT.

I have another account which is with ProvideR C that is a variable account, Could I transfer full amount from provider B to C and then ask  provider A to do partial transfer IN from provider C?

That sounds viable if the relevant providers are able to accommodate it - most fixed term/rate accounts have restricted initial funding windows though, but if you can still transfer into A then that should work, as long as it's clear that all your 2023/24 money is in one place....

If B is a fixed account, there will presumably be significant penalties for premature access?

fidaa

eskbanker said:

fidaa said:

eskbanker said:

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

Thanks but challenge is that  provider A is also a fixed account so will not allow partial transfers OUT.

I have another account which is with ProvideR C that is a variable account, Could I transfer full amount from provider B to C and then ask  provider A to do partial transfer IN from provider C?

That sounds viable if the relevant providers are able to accommodate it - most fixed term/rate accounts have restricted initial funding windows though, but if you can still transfer into A then that should work, as long as it's clear that all your 2023/24 money is in one place....

If B is a fixed account, there will presumably be significant penalties for premature access?

Provide B has said I will lose interest. I opened up in April so I guess some interest lost but what can I do??

eskbanker

fidaa said:

eskbanker said:

fidaa said:

eskbanker said:

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

Thanks but challenge is that  provider A is also a fixed account so will not allow partial transfers OUT.

I have another account which is with ProvideR C that is a variable account, Could I transfer full amount from provider B to C and then ask  provider A to do partial transfer IN from provider C?

That sounds viable if the relevant providers are able to accommodate it - most fixed term/rate accounts have restricted initial funding windows though, but if you can still transfer into A then that should work, as long as it's clear that all your 2023/24 money is in one place....

If B is a fixed account, there will presumably be significant penalties for premature access?

Provide B has said I will lose interest. I opened up in April so I guess some interest lost but what can I do??

It's possible that HMRC won't take any action if you simply leave things and avoid exceeding £20K of contributions in total, but there are no guarantees, and they won't offer advice in advance of reviewing the matter after the end of the tax year, but I'd suggest sharing more detail of exactly which accounts you're referring to and how much you've paid into each of them, both in prior years and the current one.

fidaa

eskbanker said:

fidaa said:

eskbanker said:

fidaa said:

eskbanker said:

fidaa said:

got a problem, provider B is saying as that is a fixed account, Provider A need to do full transfer and not partial.

If I do full transfer from provider B into provider A, it would go over the 85k protection by FCA.

Any help would be appreciated.

If you'd exceed the £85K FSCS limit after a full transfer from B to A, you could always make another transfer from A to C, sized to ensure that all of your current year money is kept together in the same place, which could be A or C....

Thanks but challenge is that  provider A is also a fixed account so will not allow partial transfers OUT.

I have another account which is with ProvideR C that is a variable account, Could I transfer full amount from provider B to C and then ask  provider A to do partial transfer IN from provider C?

That sounds viable if the relevant providers are able to accommodate it - most fixed term/rate accounts have restricted initial funding windows though, but if you can still transfer into A then that should work, as long as it's clear that all your 2023/24 money is in one place....

If B is a fixed account, there will presumably be significant penalties for premature access?

Provide B has said I will lose interest. I opened up in April so I guess some interest lost but what can I do??

It's possible that HMRC won't take any action if you simply leave things and avoid exceeding £20K of contributions in total, but there are no guarantees, and they won't offer advice in advance of reviewing the matter after the end of the tax year, but I'd suggest sharing more detail of exactly which accounts you're referring to and how much you've paid into each of them, both in prior years and the current one.

For current year I paid 12k into provider A and 6k into Proider B.

I want to move 6k into 12k account. 12k provider A account was opened first.

Any advice?

eskbanker

You'd need to work out the cost of accessing the money prematurely from B and take a view about whether it's worth paying it, or just risking corrective HMRC action eventually.