ISA

Hhollylouise12

I don’t know much about isas but I have one with Lloyds bank the begging of the year I belive April time , I closed it as i got offered better deal with Barclays so opened one with them I didn’t transfer my balance directly as had issues with Lloyds can I open another with lyods even when I’ve closed one with them this year ?

Hhollylouise12

I opened a cash isa in April with Lloyds had to close in October , as was suppsoed to switch banks have instant isa with Barclays , Lloyds bank have allowed me to open just a club Lloyds isa with them again is there a rule to this is it allowed 

Hhollylouise12

But I’ve paid £18000 into one and £3200 in another so am I over the £20,000 limit even though there diffrent , I have removed money for all now , never gone over £20,000 in one account been split over diffrent isas etc 

Hhollylouise12

Part of the £18,000 is the £3,200 but I couldnt transfer the isa so had to withdraw and then move into isa to make £18,000 if that makes a diffrence

Hhollylouise12

So may have resolved issue anyway but still want advice so all these comments I have made I’m going to summarise to make myself clearer
in April 2024 on the 8th I opened a cash isa with Lloyds  I only had £4000 in max I closed the account and moved to Barclays in October this year only with a instant isa 
then I added an extra £3200 to this but I wanted to go back with Lloyds so I wanted to transfer this but Barclays said no , online banking wasn’t letting me so I withdrew the £3200(that’s all that was left after a recent death ) and made a new isa with Lloyds not a cash isa just a advantage isa today , then I put £17,700 into this isa today but realised I made a mistake so closed it immediately and with Lloyds it says I have 14 day cooling of period so does that mean I’m not over the tax limit as I closed it the same day as opening and the £17,700 never happened ? So effectivly I’ve only used £7200 of my tax free allowance and I removed money and closed before colling of period for the £17,770 happened today 

masonic

As you've used your full allowance between the ISAs, you can't add money to a third until the next tax year. If the Lloyds ISA allows flexible withdrawals and is still open, you would be entitled to replace up to £2k without breaching the allowance. I doubt anything will come of the period where you had more than £2k in this ISA.

PRAISETHESUN

Hhollylouise12 said:

So may have resolved issue anyway but still want advice so all these comments I have made I’m going to summarise to make myself clearer
in April 2024 on the 8th I opened a cash isa with Lloyds  I only had £4000 in max I closed the account and moved to Barclays in October this year only with a instant isa 
then I added an extra £3200 to this but I wanted to go back with Lloyds so I wanted to transfer this but Barclays said no , online banking wasn’t letting me so I withdrew the £3200(that’s all that was left after a recent death ) and made a new isa with Lloyds not a cash isa just a advantage isa today , then I put £17,700 into this isa today but realised I made a mistake so closed it immediately and with Lloyds it says I have 14 day cooling of period so does that mean I’m not over the tax limit as I closed it the same day as opening and the £17,700 never happened ? So effectivly I’ve only used £7200 of my tax free allowance and I removed money and closed before colling of period for the £17,770 happened today 

Please correct me if I've misunderstood the chain of events:

1) deposit £4000 into Lloyds ISA
2) withdraw £4000 from Lloyds ISA (withdrawal, not transfer)
2) deposit £3200 into Barclays ISA
3) withdraw £3200 from Barclays ISA (withdrawal, not transfer)
4) deposit £17700 into a new lloyds ISA
5) cancelled new Lloyds ISA £17700 within cooling off period

From the above you have deposited £7200 (£4000 + £3200) into ISAs this tax year, and have £12800 allowance remaining. Cancelling your ISA within the cooling off period means HMRC treat the subscription as having been never made, so it doesn't count towards your ISA limit, and they won't penalise you for having exceeded the £20k limit.

masonic

I missed the OP's most recent post (it was posted 2 minutes earlier than my reply so I think our posts crossed). On the basis of that post I agree £17,700 of the subscriptions can be disregarded, so only £7,200 of the allowance has been used.

eskbanker

PRAISETHESUN said:

Hhollylouise12 said:

made a new isa with Lloyds not a cash isa just a advantage isa today , then I put £17,700 into this isa today but realised I made a mistake so closed it immediately and with Lloyds it says I have 14 day cooling of period so does that mean I’m not over the tax limit as I closed it the same day as opening and the £17,700 never happened ? So effectivly I’ve only used £7200 of my tax free allowance and I removed money and closed before colling of period for the £17,770 happened today 

5) cancelled new Lloyds ISA £17700 within cooling off period

From the above you have deposited £7200 (£4000 + £3200) into ISAs this tax year, and have £12800 allowance remaining. Cancelling your ISA within the cooling off period means HMRC treat the subscription as having been never made, so it doesn't count towards your ISA limit, and they won't penalise you for having exceeded the £20k limit.

'Cancelling' and 'closing' aren't necessarily interchangeable - OP, which did you do?

masonic

If it was closed on the same day, and that date was 17th December, there is still a narrow window of time to clarify with Lloyds that this should be treated as a cancellation within the 14 day window.