Fixed Rate ISA moving abroad

xylophone

Yes, it reads to me that the problem is not that you left the UK but that you became non-resident in the same year.

Thanks - I had not read carefully enough.


  That said, it seems an omission that the guidance to the public (first post) does not say ( "You must tell your ISA provider as soon as you stop being a UK resident so that any subscription made in that tax year may be returned to you").

 It seems unlikely that in the general way, subscribers would read the Guidance to ISA Managers.

I'd go so far as to say that the guidance to subscribers is positively misleading!

  

xylophone

And see 

https://community.hmrc.gov.uk/customerforums/pt/82342308-f3ac-ee11-a81c-002248004b84#:~:text=As you have moved abroad,and investment held in it.

Posted 3 months ago by HMRC Admin 10 

Hi
You cannot put money into an ISA after the tax year that you move.  
This means that you can still put money into the ISA in the tax year that you move.  You need to be resident in the UK to open a new ISA.

BadToro

I’ve now received a deadlock letter which clearly states

“checked the HMRC rules and Santander policy through websites, back office teams and the ISA team. They have confirmed, since April 2013, we are required to remove any subscriptions that have been made since the start of the tax year in which you became non-resident.”

I will still contact the ombudsman to clarify, yes indeed it is misleading but it’s not just on the part of HMRC but from the providers too.

The good news is that I’ve been reassured that the cheque will be cancelled now and the money will be transferred into my UK bank account, phew!

xylophone

Please keep us updated  on what happens.

The "since 2013" is interesting.

But the official guide IS misleading.

https://www.gov.uk/individual-savings-accounts/if-you-move-abroad

If you open an Individual Savings Account (ISA) in the UK then move abroad, you cannot put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner).

BadToro

Yes sure, I will keep the thread up to date.

I've just submitted my documentation and the deadlock letter to the ombudsman, I trust they will be able to clarify and their answer/resolution will hopefully help others.

BadToro

The ombudsman finally provided their result on my complaint. "unable to say that Santander made errors in removing the payments and not allowing further credits, as they followed HMRC guidance." They further stated that "After reviewing the information [...] found on HMRC’s website, which states that individuals cannot contribute to an ISA after the tax year in which they become non-residents and considering the response received from HMRC

confirming his understanding of the ISA rules, it's evident that there is a discrepancy in the information provided by HMRC. [...] it's apparent that in this case, HMRC has supplied conflicting information to both parties."

Oh well, thank you HMRC.

Case closed, hopefully this'll help someone else in the future.

In all honesty I cannot be bothered to complain to HMRC (maybe I should). I may leave this battle to someone else.