Keeping track of isa allowance

dont_use_vistaprint

Now that you can have multiple accounts for isa savings & some are replaceable funds and with rates changing & transfers it seems inevitable people will make mistakes and inadvertently exceed the £20k


Will HMRC track it and inform
you ?


What actions will they take ? 

For myself I’m below my personal allowance so not paying tax anyway so I’m presuming if I replaced 20K into a higher interest account there’s still no tax due so no consequences ? 

masonic

Eventually, but it could be years later. They are quite forgiving of a first offence, but it's not something it would be advisable to do repeatedly as they have the option to void the ISA and treat the interest as taxable. Potentially no consequences if you wouldn't have paid tax if it wasn't an ISA.