ISA Additional Permitted Subscription Error

simmytime

Ive inherited my dead spouses ISA allowance, known as an Additional Permitted Subscription. I requested it be transferred to my own ISA. But the value of my partners ISA dropped by £500 when the transfer was done so I had to make up the difference.

I called to do so and they said I can also use my APS allowance for any other ISA. So I opened up a new cash ISA and put in £500.

Heres the tricky bit - Ive since read online that the APS allowance must be used with the same provider. My partner only had one ISA with this provider. But when I phoned that wasnt explained to me. Ive already maxed my own ISA allowance so now Im worried it will flag up with HMRC Ive put in 500 extra into my ISA, all because I was mislead a bit.

Should I tell HMRC?

eskbanker

First things first, when did all of this happen, i.e. before or after the tax year change on 5/6 April?

simmytime

eskbanker said:

First things first, when did all of this happen, i.e. before or after the tax year change on 5/6 April?

Before this tax year. In February 2024.

eskbanker

simmytime said:

eskbanker said:

First things first, when did all of this happen, i.e. before or after the tax year change on 5/6 April?

Before this tax year. In February 2024.

In which case it's too late to take any actions to correct the issue of slightly exceeding your annual allowance, so there's nothing to be gained by contacting HMRC, who will be able to spot the breach in their compliance activities later in the year.  However, they will generally forgive a first 'offence' anyway, and even if they did choose to take any action, it would only be to regard the £500 contribution to the last ISA as being taxable, so any financial consequence would be trivial, i.e. there are no fines or penalties or anything like that.

If you were incorrectly advised by a provider that you could split the APS across multiple ISAs, then you might wish to log a complaint with them.