oversubscribed cash isa

My mum accidently oversubscribed to Cash ISA's by about 10k.
The recent one was opened today, can it be rectified by cancelling the account during the 14 day cooling off period?

Comments

  • eskbanker
    eskbanker Posts: 36,928 Forumite
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    In a word, yes.
  • I did the same myself a few months ago. I only realised when my money was returned automatically without any correspondence from the bank.
  • eskbanker
    eskbanker Posts: 36,928 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I did the same myself a few months ago. I only realised when my money was returned automatically without any correspondence from the bank.
    Yes, attempting to subscribe more than £20K to an individual institution should result in payment rejection, but subscribing to multiple ISAs wouldn't trigger such action and wouldn't be picked up until HMRC compliance checks during the following tax year.

    Although OP refers to ISA (singular) in the thread title, the use of ISAs (plural) in the post suggests that more than one was funded, so if cancelling the most recent one takes current year subscriptions back below £20K then that would resolve the issue....
  • Aidanmc
    Aidanmc Posts: 1,263 Forumite
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    eskbanker said:
    I did the same myself a few months ago. I only realised when my money was returned automatically without any correspondence from the bank.
    Yes, attempting to subscribe more than £20K to an individual institution should result in payment rejection, but subscribing to multiple ISAs wouldn't trigger such action and wouldn't be picked up until HMRC compliance checks during the following tax year.

    Although OP refers to ISA (singular) in the thread title, the use of ISAs (plural) in the post suggests that more than one was funded, so if cancelling the most recent one takes current year subscriptions back below £20K then that would resolve the issue....

    Yes it was 2 ISA's different providers.
    One in June was about 10k and today to a different ISA 20k
    So best thing to do is cancel during cooling off period and no harm done?
  • Aidanmc
    Aidanmc Posts: 1,263 Forumite
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    Also please, if this most recent Isa was cancelled, she would be free to open another one subscribing only the allowable remainder for 24/25
  • eskbanker
    eskbanker Posts: 36,928 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Aidanmc said:
    Yes it was 2 ISA's different providers.
    One in June was about 10k and today to a different ISA 20k
    So best thing to do is cancel during cooling off period and no harm done?
    Yes, cancelling during the cooling-off period has the effect of voiding the opening and funding as if it had never happened, provided that it's made clear that this is the process being followed, rather than simply closing the account.

    Aidanmc said:
    Also please, if this most recent Isa was cancelled, she would be free to open another one subscribing only the allowable remainder for 24/25
    Yes.
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