The New ISA Rules from 2026

KKILP

Oh really, I got the new one just last week, so that will look like Ive paid in more than £20k, just need to wait and see, if it comes to it I will advise it was an error on my part not knowing the ins and outs, hopefully but doubt it they may take puty on me see what they say so next year I can have as many ISAs as long as only £12k in each then

eskbanker

so next year I can have as many ISAs as long as only £12k in each then

No! That's really not what I've said, please read it again, carefully.

In terms of your potential oversubscription, you may still be within the cooling-off period so might be able to cancel it to tidy things up?

KKILP

I just checked, I paid in £20k in March 25 then £10k in April 25 so that meant I had only £10k used up to end Mar 26 but withdrew all the money incl interest in 11th March 26. So I am over my limit for 25/26 by £10k plus interest, my new one is flexible does this make a diff the one that matured doesnt look like was

KKILP

Did you actually withdraw the money from your maturing ISA and pay it into your current account before opening and funding a new ISA? If so, this will have counted towards your annual 2025/26 allowance, but if you hadn't already used that then there may not be a problem?

I opened up a new ISA with a £1 then withdrew the money from my matured ISA and paid in 19K to it

sorry bit thick when it comes to these things

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81948813#Comment_81948813

No, the new one being flexible doesn't make a difference, it's the old one that would have needed this for flexibility to offer a solution.

As above, you could cancel the new ISA within the first 14 days, or another option would be to withdraw the excess above £10K from the new ISA before the end of Sunday, which would bring your net 2025/26 contributions back within limits.

Or you could just leave the inflated subscriptions in there and see if HMRC decides to take any action - they could make various corrections, such as declaring the excess to be taxable, but anecdotally, first-time 'offenders' will often just get a warning.