Consolidating ISAs

sunflowers123

Hi, first time posting in this category so please be gentle! 

I have multiple fixed rate ISAs which will mature at different times of the year (April - Oct). How do I go about consolidating them?  Do I wait until the last one matures and transfer them all in at the same time? 

I have researched my next question but couldn’t find a definitive answer.  I opened two fixed rate ISAs in the same tax year.  One was just a transfer and the other I deposited into. Is this allowed?  If not, do I need to call my provider to close one?

Thank you very much in anticipation. 

eskbanker

sunflowers123 said:

I have multiple fixed rate ISAs which will mature at different times of the year (April - Oct). How do I go about consolidating them?  Do I wait until the last one matures and transfer them all in at the same time? 

Depends what you want to consolidate into - if you're going for an easy access one then you can fund it in stages, but if you're after another fixed one then chances are you'd need to wait, unless you go for one that allows contributions beyond a short initial funding window.

sunflowers123 said:

I have researched my next question but couldn’t find a definitive answer.  I opened two fixed rate ISAs in the same tax year.  One was just a transfer and the other I deposited into. Is this allowed?  If not, do I need to call my provider to close one?

The current rule (until April) is that you can only pay new money into one ISA of each type in any tax year, so provided all of your current year cash ISA contributions are in the same ISA then you're fine.

sunflowers123

eskbanker said:

sunflowers123 said:

I have multiple fixed rate ISAs which will mature at different times of the year (April - Oct). How do I go about consolidating them?  Do I wait until the last one matures and transfer them all in at the same time? 

Depends what you want to consolidate into - if you're going for an easy access one then you can fund it in stages, but if you're after another fixed one then chances are you'd need to wait, unless you go for one that allows contributions beyond a short initial funding window.

sunflowers123 said:

I have researched my next question but couldn’t find a definitive answer.  I opened two fixed rate ISAs in the same tax year.  One was just a transfer and the other I deposited into. Is this allowed?  If not, do I need to call my provider to close one?

The current rule (until April) is that you can only pay new money into one ISA of each type in any tax year, so provided all of your current year cash ISA contributions are in the same ISA then you're fine.

Thank you so much for your detailed reply.  It’s really helpful and I have learnt something new!

I have just noticed two of those fixed rate ISAs were opened in the same tax year and have as a result gone over my limit.  I blame it on baby brain!  Would you/anybody happen to know what I need to do next?

eskbanker

sunflowers123 said:
I have just noticed two of those fixed rate ISAs were opened in the same tax year and have as a result gone over my limit.  I blame it on baby brain!  Would you/anybody happen to know what I need to do next?

Do you mean that you paid new money into multiple cash ISAs in the same tax year?  If so, were these with different institutions?  When you say 'over your limit', do you mean exceeding the limit of one cash ISA for new money, or the overall £20K aggregate limit on contributions?

sunflowers123

eskbanker said:

sunflowers123 said:
I have just noticed two of those fixed rate ISAs were opened in the same tax year and have as a result gone over my limit.  I blame it on baby brain!  Would you/anybody happen to know what I need to do next?

Do you mean that you paid new money into multiple cash ISAs in the same tax year?  If so, were these with different institutions?  When you say 'over your limit', do you mean exceeding the limit of one cash ISA for new money, or the overall £20K aggregate limit on contributions?

Yes new money with two different providers in the same tax year.  The two amounts added together exceed £20k. 

eskbanker

sunflowers123 said:

eskbanker said:

sunflowers123 said:
I have just noticed two of those fixed rate ISAs were opened in the same tax year and have as a result gone over my limit.  I blame it on baby brain!  Would you/anybody happen to know what I need to do next?

Do you mean that you paid new money into multiple cash ISAs in the same tax year?  If so, were these with different institutions?  When you say 'over your limit', do you mean exceeding the limit of one cash ISA for new money, or the overall £20K aggregate limit on contributions?

Yes new money with two different providers in the same tax year.  The two amounts added together exceed £20k. 

The bad news is that there isn't anything that you can do now to correct that, but the good news is that HMRC rarely take any action against first time offenders, so it's unlikely that there'll be any consequences, although they could determine that the contributions to the second ISA would be treated as taxable when you've broken two rules and made a false declaration.  You'll just have to wait and see if HMRC get in touch later in the year, so there's no point in talking to them before that....

sunflowers123

eskbanker said:

sunflowers123 said:

eskbanker said:

sunflowers123 said:
I have just noticed two of those fixed rate ISAs were opened in the same tax year and have as a result gone over my limit.  I blame it on baby brain!  Would you/anybody happen to know what I need to do next?

Do you mean that you paid new money into multiple cash ISAs in the same tax year?  If so, were these with different institutions?  When you say 'over your limit', do you mean exceeding the limit of one cash ISA for new money, or the overall £20K aggregate limit on contributions?

Yes new money with two different providers in the same tax year.  The two amounts added together exceed £20k. 

The bad news is that there isn't anything that you can do now to correct that, but the good news is that HMRC rarely take any action against first time offenders, so it's unlikely that there'll be any consequences, although they could determine that the contributions to the second ISA would be treated as taxable when you've broken two rules and made a false declaration.  You'll just have to wait and see if HMRC get in touch later in the year, so there's no point in talking to them before that....

Thanks so much for your help.  Really appreciate your time. 

Albermarle

I have researched my next question but couldn’t find a definitive answer.  I opened two fixed rate ISAs in the same tax year.  One was just a transfer and the other I deposited into. Is this allowed?  If not, do I need to call my provider to close one

If your research had included reading through this forum, then you would see your questions have been asked and answered many times before. It is a useful resource for the future.