New ISA rules April 2024

eskbanker

shine600 said:

as a newbie I'm not allowed to post a link to the key article on moneyweek

It's https://moneyweek.com/personal-finance/savings/isas/multiple-isa-rule-how-it-works but it was published a week ago, i.e. on the second working day of the new regime, and wasn't particularly comprehensive even then, so doesn't have the authority or credibility you appear to consider it to.

Anyway, as discussed on this board, the situation is changing all the time as providers get up to speed, not least because of the delay in HMRC issuing their guidance documentation, clarifying interpretation of the legislation, so there are plenty of other providers who don't object to those funding ISAs elsewhere, and they have no means of finding that out anyway....

shine600 said:

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. 

No chance!

masonic

Mis-selling is the practice of selling things to people who probably should not be sold them. Whereas what is happening here in the main is that potential sales are being discouraged for spurious reasons.

subjecttocontract

Yes exactly, it's a conspiracy to discourage people from saving in tax free savings accounts. HMRC probably want to increase the tax take for this financial year. Dastardly clever plan eh ?

masonic

subjecttocontract said:

Yes exactly, it's a conspiracy to discourage people from saving in tax free savings accounts. HMRC probably want to increase the tax take for this financial year. Dastardly clever plan eh ?

Suspect it will only drive customers into the hands of competitor firms with a clearer understanding / more responsive compliance team. As highlighted earlier in the thread, there are plenty who have updated their wording.

Kim_13

subjecttocontract said:

Yes exactly, it's a conspiracy to discourage people from saving in tax free savings accounts. HMRC probably want to increase the tax take for this financial year. Dastardly clever plan eh ?

To be honest people will probably largely: 

a) Have vaguely heard about the changes and do as they like. Those that don't read things fully might not even notice wording that is contrary to what they expect.

b) Ignore non-compliant declarations, knowing that they are in the right as far as HMRC are concerned

c) Continue as though the changes hadn't been made, with one of each type of ISA per tax year and minimal impact on the amount of their allowance utilised.

Those who take the time to contact providers to draw attention to their overreaching declarations/question the position will be in the minority. 

RetSol

https://www.thisismoney.co.uk/money/saving/article-13316161/Big-banks-ignoring-new-rules-let-savers-open-one-Isa-year.html. 

auser99

Quick refresher - had set a Shawbrook ISA up at 4.91%, aiming to set another cash ISA up elsewhere.

Having read the comments on this forum and the Shawbrook advisor telling me it wasn't on to do such a split arrangement, I cancelled the Shawbrook one.

I put a complaint email in, and they said it had to go via a secure message on their system.
Did that, asking for clarification and finally got their response.

It apologies that I'd been misinformed and confirmed that you CAN split between 2 ISAs across different banks, but not within their bank!

Doh...they've finally worked it out! And now changed the website wording (apparently) to along the lines of if you do split your cash ISAs, it's down to you to monitor the amount etc.

So is it worth complaining to someone within the bank, or straight to an ombudsman?

It's probably only a £20 loss over the year plus the days in limbo, but is it worth it for the principle and time messing about cancelling and re-starting etc?

masonic

auser99 said:

Quick refresher - had set a Shawbrook ISA up at 4.91%, aiming to set another cash ISA up elsewhere.
Having read the comments on this forum and the Shawbrook advisor telling me it wasn't on to do such a split arrangement, I cancelled the Shawbrook one.
I put a complaint email in, and they said it had to go via a secure message on their system.
Did that, asking for clarification and finally got their response.
It apologies that I'd been misinformed and confirmed that you CAN split between 2 ISAs across different banks, but not within their bank!
Doh...they've finally worked it out! And now changed the website wording (apparently) to along the lines of if you do split your cash ISAs, it's down to you to monitor the amount etc.
So is it worth complaining to someone within the bank, or straight to an ombudsman?
It's probably only a £20 loss over the year plus the days in limbo, but is it worth it for the principle and time messing about cancelling and re-starting etc?

You could point out that as a direct result of their incorrect advice you opted for a lower paying ISA and ask them to reimburse you for the difference in interest over the year. I suspect they would be willing to cough up £20 to make the complaint go away.

auser99

masonic said:

auser99 said:

Quick refresher - had set a Shawbrook ISA up at 4.91%, aiming to set another cash ISA up elsewhere.
Having read the comments on this forum and the Shawbrook advisor telling me it wasn't on to do such a split arrangement, I cancelled the Shawbrook one.
I put a complaint email in, and they said it had to go via a secure message on their system.
Did that, asking for clarification and finally got their response.
It apologies that I'd been misinformed and confirmed that you CAN split between 2 ISAs across different banks, but not within their bank!
Doh...they've finally worked it out! And now changed the website wording (apparently) to along the lines of if you do split your cash ISAs, it's down to you to monitor the amount etc.
So is it worth complaining to someone within the bank, or straight to an ombudsman?
It's probably only a £20 loss over the year plus the days in limbo, but is it worth it for the principle and time messing about cancelling and re-starting etc?

You could point out that as a direct result of their incorrect advice you opted for a lower paying ISA and ask them to reimburse you for the difference in interest over the year. I suspect they would be willing to cough up £20 to make the complaint go away.

Good suggestion - i'll do that - respond to the secure message just making that suggestion and see what they say.
Then if needs to be more formal will pursue it.

I had a long saga last year trying to transfer an ISA from NSI to them. Eventually had some big wig look into it and agreed taking about 3months to transfer it was ever so slightly too long and they pushed £50 my way and back dated the interest. That was a proper "investigation" and response letter, though i can't remember how I went about triggering that, as the secure message responders just seem like admin juniors.

RetSol

remember how I went about triggering that, as the secure message responders just seem like admin juniors.

I find the ceo email website very useful when I want to go straight to the top.