New ISA rules April 2024

auser99

Growingold said:

auser99 said:

LightKnow said:

Am confused with Halifax ISA wording

Does the below mean - I can open only one cash ISA with them but still open with others
Or if I got cash ISA somewhere else, they won't allow to have cash ISA with them?


ISA rules allow you to pay into more than one cash ISA in each tax year but we only let you pay into one cash ISA with us 

That's what we're expecting is a reasonable position from providers - can have more than 1 Cash ISA in the year, but only 1 with them.
Some providers like Shawbrook and Kent seem to be implying they'll ask you to shut down the Cash ISA you hold with them if they find our you're also holding one elsewhere.

Shawbrook updated their ISA declaration on 12/04.  It now says:-                                                                                                                   • I have not subscribed, and will not subscribe, more than the overall subscription limit of £20,000 in total to any ISAs in the same tax year 2024/2025;

I'll be pretty annoyed if they have now actually got their heads round the rules and will allow us to split Cash ISAs, having cancelled the original ISA, and now waiting the money back in my account before going elsewhere...

It does still say in the "not for you" section of their cash isa section, "you want to save with someone else". So it doesn't 100% read that they've sorted this out yet.

I have put a moan letter in though, so maybe they'll hush me up with a little £20 payment or something, that probably covers the difference if I'm honest!!

flaneurs_lobster

auser99 said:

Growingold said:

auser99 said:

LightKnow said:

Am confused with Halifax ISA wording

Does the below mean - I can open only one cash ISA with them but still open with others
Or if I got cash ISA somewhere else, they won't allow to have cash ISA with them?


ISA rules allow you to pay into more than one cash ISA in each tax year but we only let you pay into one cash ISA with us 

That's what we're expecting is a reasonable position from providers - can have more than 1 Cash ISA in the year, but only 1 with them.
Some providers like Shawbrook and Kent seem to be implying they'll ask you to shut down the Cash ISA you hold with them if they find our you're also holding one elsewhere.

Shawbrook updated their ISA declaration on 12/04.  It now says:-                                                                                                                   • I have not subscribed, and will not subscribe, more than the overall subscription limit of £20,000 in total to any ISAs in the same tax year 2024/2025;

I'll be pretty annoyed if they have now actually got their heads round the rules and will allow us to split Cash ISAs, having cancelled the original ISA, and now waiting the money back in my account before going elsewhere...

I have put a moan letter in though, so maybe they'll hush me up with a little £20 payment or something, that probably covers the difference if I'm honest!!

All the advice opinion here was that these exclusivity clauses in provider's T&Cs were unenforceable and could not be legally or practically enforced. 

Why did you apply to Shawbrook in the first place if you thought otherwise and why then cancel?

auser99

flaneurs_lobster said:

auser99 said:

Growingold said:

auser99 said:

LightKnow said:

Am confused with Halifax ISA wording

Does the below mean - I can open only one cash ISA with them but still open with others
Or if I got cash ISA somewhere else, they won't allow to have cash ISA with them?


ISA rules allow you to pay into more than one cash ISA in each tax year but we only let you pay into one cash ISA with us 

That's what we're expecting is a reasonable position from providers - can have more than 1 Cash ISA in the year, but only 1 with them.
Some providers like Shawbrook and Kent seem to be implying they'll ask you to shut down the Cash ISA you hold with them if they find our you're also holding one elsewhere.

Shawbrook updated their ISA declaration on 12/04.  It now says:-                                                                                                                   • I have not subscribed, and will not subscribe, more than the overall subscription limit of £20,000 in total to any ISAs in the same tax year 2024/2025;

I'll be pretty annoyed if they have now actually got their heads round the rules and will allow us to split Cash ISAs, having cancelled the original ISA, and now waiting the money back in my account before going elsewhere...

I have put a moan letter in though, so maybe they'll hush me up with a little £20 payment or something, that probably covers the difference if I'm honest!!

All the advice opinion here was that these exclusivity clauses in provider's T&Cs were unenforceable and could not be legally or practically enforced. 

Why did you apply to Shawbrook in the first place if you thought otherwise and why then cancel?

I'd already set one up with them, intending to go elsewhere as well, assuming the new rule was straight forward and would be seen that way by all banks.
Then got wind on here about Shawbrook's different take on the situation - which was confirmed to me on a call too.

The implied threat of them shutting the ISA down mid year, and risk it might lose ISA status or suchlike was just a risk not worth taking for about a £20 benefit on 10k.

flaneurs_lobster

auser99 said:

The implied threat of them shutting the ISA down mid year, and risk it might lose ISA status or suchlike was just a risk not worth taking for about a £20 benefit on 10k.

Take your point, hope you can score some compo for their failures.

auser99

Response to my complaint logged via their customer care team... was that they don't deal with specifics via email!

Brilliant. Will re-send as a secure message, get their fob off, then send it the ombudsman's way. As you need to have an official response to do so apparently.

eskbanker

auser99 said:

Response to my complaint logged via their customer care team... was that they don't deal with specifics via email!

Brilliant. Will re-send as a secure message, get their fob off, then send it the ombudsman's way. As you need to have an official response to do so apparently.

Not necessarily - you can escalate to FOS once you've received an institution's final response, but in the event of not receiving this within eight weeks, you can go to FOS at that stage without a response....

masonic

Growingold said:

auser99 said:

LightKnow said:

Am confused with Halifax ISA wording

Does the below mean - I can open only one cash ISA with them but still open with others
Or if I got cash ISA somewhere else, they won't allow to have cash ISA with them?


ISA rules allow you to pay into more than one cash ISA in each tax year but we only let you pay into one cash ISA with us 

That's what we're expecting is a reasonable position from providers - can have more than 1 Cash ISA in the year, but only 1 with them.
Some providers like Shawbrook and Kent seem to be implying they'll ask you to shut down the Cash ISA you hold with them if they find our you're also holding one elsewhere.

Shawbrook updated their ISA declaration on 12/04.  It now says:-                                                                                                                   • I have not subscribed, and will not subscribe, more than the overall subscription limit of £20,000 in total to any ISAs in the same tax year 2024/2025;

The expected climb down is in full swing then. They'll no doubt get to the other deprecated wording in due course.

parchedpeas

How do these rules work with Flexible ISAs.

Say I hold £10k in Virgin Fixed.
I use Chip Flexible to save £10k.
Later this year, I open a fixed with Another Bank.
I withdraw £4k from Chip Flexible, and pay it into Another Bank.
At all times I've had no more than £20k in ISAs.

Is this possible, or does the £10k into Chip create a 'ceiling' with them - so I need to make sure the £10k is in there at the end of the year, or transfer out intead of withdraw?

masonic

parchedpeas said:

How do these rules work with Flexible ISAs.

Say I hold £10k in Virgin Fixed.
I use Chip Flexible to save £10k.
Later this year, I open a fixed with Another Bank.
I withdraw £4k from Chip Flexible, and pay it into Another Bank.
At all times I've had no more than £20k in ISAs.

Is this possible, or does the £10k into Chip create a 'ceiling' with them - so I need to make sure the £10k is in there at the end of the year, or transfer out intead of withdraw?

You can do as you describe. It is only previous year subscriptions that would need to be replaced into the same ISA. For current year money, you must not exceed the overall allowance, but can move from flexible ISAs to other ISAs during the tax year.

shine600

I wish I'd found this forum when I was scratching my head about just this issue last week. I've signed up to post here a bit of info I came across that might be useful to others, though unfortunately as a newbie I'm not allowed to post a link to the key article on moneyweek. This is what I emailed to MSE, thinking they maybe should be clarifying for savers.

Hi, MSE

I've been about to open a couple of cash ISAs in the last day or so but noticed in the small print they all had a line saying that if you open one you can't open another cash isa this tax year. I thought maybe they've forgotten to update that line for 24/25....

As you know the new rules say people can have multiple Cash ISAs.  Turns out, and I wish you'd said something about this on your site which is my go-to for information as it would have saved me a lot of time figuring out what the score was, there are very few banks/BS that permit this!

Here's where I eventually found this out;

''currently only TSB, Nationwide Building Society and Skipton Building Society are taking on the new ISA reform. It means between these three providers, you can open multiple ISAs of the same type.'

I looked into all of those three but didn't go with any of them in the end for various reasons as they weren't a good fit.

As for banks non-compliance with the recent rule change rules, I wonder if this could end up as a mis-selling fiasco with the banks in court in court in years to come. As others have said, as it stands, it's hardly enforceable by them in any case.