New ISA rules April 2024

PeskyBlunder

There's an interesting post from Sussex_Green_Man here:-

https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p745

masonic

PeskyBlunder said:

There's an interesting post from Sussex_Green_Man here:-

https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p745

What a palavar! You've got to love the typical bank employee opining on ISA rules, who either doesn't understand the customer's question, or the rules, as well as they think they do.

jonp63

About time GOV.UK updated their own information?! (screenshot from today, 10/04/2024)

Carl13

SP_57 said:

There is definitely confusion.  I've just tried to open a Shawbrook ISA whose declaration says you can only open one cash ISA per year (i.e. unchanged).  

I phoned and queried this and was told the changes were only proposed and didn't apply.  Needless to say I can't agree the declaration so can't open the account!

I have also tried to open a Shawbrook ISA (Was planning to use half of my allowance) but was concerned that their declaration states I would not open another Cash ISA this tax year which I was hoping to do. Rang them to query and was told they had not opted into the scheme / system. Rang another on-line bank and visited both Yorkshire Building Society & Lloyds and was told that Shawbrook was not applying the rules correctly (YBS did mention that a provider can say that a customer could only open 1 Cash ISA with them but that would not alter their options with other providers as long as the maximum saved was 20K over all products). I rang Shawbrook again this morning and was told the same thing even though I referred to HMRC's own newsletter aimed at the banking industry and when I asked how they would know if I opened an ISA later with another bank I was told ominously "We will know!!!" I mentioned the  conversations I had with other banks and the operator ignored it as if they were an island in the banking industry. I currently have a complaint on record in connection with the matter.

If we assume that a bank could opt out of the scheme and all banks did it then the new rules would be pointless and if a bank opting out would limit a customers options in investing later in the year as I described above then HMRC would have to know and list all providers who have opted out to avoid the risk that customers break the rules without knowing - Making ISAs more complex not less.  

jimjames

PeskyBlunder said:

There's an interesting post from Sussex_Green_Man here:-

https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p745

There is no requirement for banks to allow customers to open more than 1 cash ISA with them. Nothing they can do to stop you opening one elsewhere so SussexGreenman could have continued his application if he'd so wished.

auser99

Carl13 said:

SP_57 said:

There is definitely confusion.  I've just tried to open a Shawbrook ISA whose declaration says you can only open one cash ISA per year (i.e. unchanged).  

I phoned and queried this and was told the changes were only proposed and didn't apply.  Needless to say I can't agree the declaration so can't open the account!

I have also tried to open a Shawbrook ISA (Was planning to use half of my allowance) but was concerned that their declaration states I would not open another Cash ISA this tax year which I was hoping to do. Rang them to query and was told they had not opted into the scheme / system. Rang another on-line bank and visited both Yorkshire Building Society & Lloyds and was told that Shawbrook was not applying the rules correctly (YBS did mention that a provider can say that a customer could only open 1 Cash ISA with them but that would not alter their options with other providers as long as the maximum saved was 20K over all products). I rang Shawbrook again this morning and was told the same thing even though I referred to HMRC's own newsletter aimed at the banking industry and when I asked how they would know if I opened an ISA later with another bank I was told ominously "We will know!!!" I mentioned the  conversations I had with other banks and the operator ignored it as if they were an island in the banking industry. I currently have a complaint on record in connection with the matter.

If we assume that a bank could opt out of the scheme and all banks did it then the new rules would be pointless and if a bank opting out would limit a customers options in investing later in the year as I described above then HMRC would have to know and list all providers who have opted out to avoid the risk that customers break the rules without knowing - Making ISAs more complex not less.  

Shawbrook seem to be answering a different question from what's being asked.
They can opt out of allowing more than 1 Cash ISA to be set up through themselves, but they surely have zero say in what you do elsewhere, or even be able to know what you've done.

@steveksullivan had a call with Shawbrook and wrote the below on another thread

She was VERY CLEAR that Shawbrook are abiding by the new HMRC/ Government rules and that you CAN open as many cash ISAs with other providers as you like (as we know.....) The restriction is that you can't open more than one cash ISA with Shawbrook (which they are allowed to dictate ....)

auser99

auser99 said:

Carl13 said:

SP_57 said:

There is definitely confusion.  I've just tried to open a Shawbrook ISA whose declaration says you can only open one cash ISA per year (i.e. unchanged).  

I phoned and queried this and was told the changes were only proposed and didn't apply.  Needless to say I can't agree the declaration so can't open the account!

I have also tried to open a Shawbrook ISA (Was planning to use half of my allowance) but was concerned that their declaration states I would not open another Cash ISA this tax year which I was hoping to do. Rang them to query and was told they had not opted into the scheme / system. Rang another on-line bank and visited both Yorkshire Building Society & Lloyds and was told that Shawbrook was not applying the rules correctly (YBS did mention that a provider can say that a customer could only open 1 Cash ISA with them but that would not alter their options with other providers as long as the maximum saved was 20K over all products). I rang Shawbrook again this morning and was told the same thing even though I referred to HMRC's own newsletter aimed at the banking industry and when I asked how they would know if I opened an ISA later with another bank I was told ominously "We will know!!!" I mentioned the  conversations I had with other banks and the operator ignored it as if they were an island in the banking industry. I currently have a complaint on record in connection with the matter.

If we assume that a bank could opt out of the scheme and all banks did it then the new rules would be pointless and if a bank opting out would limit a customers options in investing later in the year as I described above then HMRC would have to know and list all providers who have opted out to avoid the risk that customers break the rules without knowing - Making ISAs more complex not less.  

Shawbrook seem to be answering a different question from what's being asked.
They can opt out of allowing more than 1 Cash ISA to be set up through themselves, but they surely have zero say in what you do elsewhere, or even be able to know what you've done.

@steveksullivan had a chat with another Shawbrook worker and I paste in his response below.

She was VERY CLEAR that Shawbrook are abiding by the new HMRC/ Government rules and that you CAN open as many cash ISAs with other providers as you like (as we know.....) The restriction is that you can't open more than one cash ISA with Shawbrook (which they are allowed to dictate ....)

Carl13

auser99 said:

Carl13 said:

SP_57 said:

There is definitely confusion.  I've just tried to open a Shawbrook ISA whose declaration says you can only open one cash ISA per year (i.e. unchanged).  

I phoned and queried this and was told the changes were only proposed and didn't apply.  Needless to say I can't agree the declaration so can't open the account!

I have also tried to open a Shawbrook ISA (Was planning to use half of my allowance) but was concerned that their declaration states I would not open another Cash ISA this tax year which I was hoping to do. Rang them to query and was told they had not opted into the scheme / system. Rang another on-line bank and visited both Yorkshire Building Society & Lloyds and was told that Shawbrook was not applying the rules correctly (YBS did mention that a provider can say that a customer could only open 1 Cash ISA with them but that would not alter their options with other providers as long as the maximum saved was 20K over all products). I rang Shawbrook again this morning and was told the same thing even though I referred to HMRC's own newsletter aimed at the banking industry and when I asked how they would know if I opened an ISA later with another bank I was told ominously "We will know!!!" I mentioned the  conversations I had with other banks and the operator ignored it as if they were an island in the banking industry. I currently have a complaint on record in connection with the matter.

If we assume that a bank could opt out of the scheme and all banks did it then the new rules would be pointless and if a bank opting out would limit a customers options in investing later in the year as I described above then HMRC would have to know and list all providers who have opted out to avoid the risk that customers break the rules without knowing - Making ISAs more complex not less.  

Shawbrook seem to be answering a different question from what's being asked.
They can opt out of allowing more than 1 Cash ISA to be set up through themselves, but they surely have zero say in what you do elsewhere, or even be able to know what you've done.

@steveksullivan had a call with Shawbrook and wrote the below on another thread

She was VERY CLEAR that Shawbrook are abiding by the new HMRC/ Government rules and that you CAN open as many cash ISAs with other providers as you like (as we know.....) The restriction is that you can't open more than one cash ISA with Shawbrook (which they are allowed to dictate ....)

Thanks for this comment. I must have got 2 staff members who could or would not understand the scenario that I was putting forward (I wonder how many possible customers / money to be invested they have lost from what appears to a lack of training or understanding). I do see their declaration still includes the wording "I have not subscribed, and will not subscribe, to another Cash ISA in the same tax year that I subscribe to this Cash ISA; "

Rich2808

Do we have a definitive list of which providers will only still allow you to open and invest in one cash ISA using new funds for the 2024-25 tax year? So won't allow you to open a second cash isa with new money with them or allow partial in year transfers out or we assume accept current year partial transfers in if you have already paid into a 2024-25 isa with new funds with them?

Melton and Kent Reliance are on the list - any others - before people open accounts?

Carl13

auser99 said:

auser99 said:

Carl13 said:

SP_57 said:

There is definitely confusion.  I've just tried to open a Shawbrook ISA whose declaration says you can only open one cash ISA per year (i.e. unchanged).  

I phoned and queried this and was told the changes were only proposed and didn't apply.  Needless to say I can't agree the declaration so can't open the account!

I have also tried to open a Shawbrook ISA (Was planning to use half of my allowance) but was concerned that their declaration states I would not open another Cash ISA this tax year which I was hoping to do. Rang them to query and was told they had not opted into the scheme / system. Rang another on-line bank and visited both Yorkshire Building Society & Lloyds and was told that Shawbrook was not applying the rules correctly (YBS did mention that a provider can say that a customer could only open 1 Cash ISA with them but that would not alter their options with other providers as long as the maximum saved was 20K over all products). I rang Shawbrook again this morning and was told the same thing even though I referred to HMRC's own newsletter aimed at the banking industry and when I asked how they would know if I opened an ISA later with another bank I was told ominously "We will know!!!" I mentioned the  conversations I had with other banks and the operator ignored it as if they were an island in the banking industry. I currently have a complaint on record in connection with the matter.

If we assume that a bank could opt out of the scheme and all banks did it then the new rules would be pointless and if a bank opting out would limit a customers options in investing later in the year as I described above then HMRC would have to know and list all providers who have opted out to avoid the risk that customers break the rules without knowing - Making ISAs more complex not less.  

Shawbrook seem to be answering a different question from what's being asked.
They can opt out of allowing more than 1 Cash ISA to be set up through themselves, but they surely have zero say in what you do elsewhere, or even be able to know what you've done.

@steveksullivan had a chat with another Shawbrook worker and I paste in his response below.

She was VERY CLEAR that Shawbrook are abiding by the new HMRC/ Government rules and that you CAN open as many cash ISAs with other providers as you like (as we know.....) The restriction is that you can't open more than one cash ISA with Shawbrook (which they are allowed to dictate ....)

As a follow-up to the above I thought I would call to see when my complaint would be resolved (And also hoping I might actually speak to someone who understood the new rules). The operator went away to speak to a senior colleague and "confirmed" the advice previously given. They had not opted in and that if I was to open an ISA with another provider Shawbrook would ask me to close the one with them even when the total amount invested over the two ISAs was 20K or less. I wait for their full, written reply.