Partial transfer from current tax year

35har1old

Principality turned down a request for a partial transfer on the grounds that all the subscriptions where made in this tax year even when there was  ISA transfers in from previous tax years included in the subscriptions
Your thoughts please

eskbanker

Not particularly clear exactly what's happening here - is the transfer to or from Principality, and who is the other provider? How is the balance of your existing ISA split between current and prior year money, and how much was the partial transfer request for?

Some providers, especially smaller ones, didn't fully implement the reforms that allowed current year money to be split up or spread across multiple providers or products, so I imagine that any confusion will arise from that, but that's just a guess at this stage - Principality's position on inbound transfers is stated as:

When transferring money from one ISA to another, you must transfer the full amount that you have paid in for the current tax year. You will be able to transfer part or all of the balance from previous tax years.

35har1old

eskbanker said:

Not particularly clear exactly what's happening here - is the transfer to or from Principality, and who is the other provider? How is the balance of your existing ISA split between current and prior year money, and how much was the partial transfer request for?

Some providers, especially smaller ones, didn't fully implement the reforms that allowed current year money to be split up or spread across multiple providers or products, so I imagine that any confusion will arise from that, but that's just a guess at this stage - Principality's position on inbound transfers is stated as:

When transferring money from one ISA to another, you must transfer the full amount that you have paid in for the current tax year. You will be able to transfer part or all of the balance from previous tax years.

Small partial  transfer out from a 5 access Principality ISA to Progressive 5 year ISA and no the problem Isn't with Progressive. Majority of funds from previous years ISAs transfers in made this year. Principality are saying that all funds where added this year. So effectively denying any partial transfers this year

masonic

If you filled out Progressive's transfer form stating not to include current year subscriptions then I agree that this is Principality's error if they are saying all of your subscriptions are current year when they are not. You should be able to find evidence the claim is false by looking at what they say you are allowed to subscribe in this tax year. If, say, the ISA contains £15k and they say you have £18k available to subscribe, then it would be clear that only £2k is current year money.

Have you made any flexible withdrawals and replacements? There has been an issue with some providers treating replacement subscriptions as new subscriptions in error.

35har1old

masonic said:

If you filled out Progressive's transfer form stating not to include current year subscriptions then I agree that this is Principality's error if they are saying all of your subscriptions are current year when they are not. You should be able to find evidence the claim is false by looking at what they say you are allowed to subscribe in this tax year. If, say, the ISA contains £15k and they say you have £18k available to subscribe, then it would be clear that only £2k is current year money.

Have you made any flexible withdrawals and replacements? There has been an issue with some providers treating replacement subscriptions as new subscriptions in error.

Have pointed out the the remaining  ISA allowance figure only reflects the new cash deposit . Still awaiting a reply to that message.
No withdrawals made
1 cash deposit
2 ISA's transferred in from previous years all in this current year
Transaction page showing 2 ISA'S transfers in and cash deposit 

eskbanker

And did you make it clear in your transfer request form that it isn't to include current year money, i.e. that the partial transfer must be funded from prior year money?

35har1old

eskbanker said:

And did you make it clear in your transfer request form that it isn't to include current year money, i.e. that the partial transfer must be funded from prior year money?

Yes
Progressive would not accept a second ISA opened in the same tax year being funded with current years allowance
Trying to future prove rates due to downward trends

masonic

I don't think there is much more you can do at this stage. They ought to be able to see that their own systems contradict their view that all the money is current year. Naturally they will need to compensate you for any lost interest resulting from this blunder, including any difference in rate to your detriment when you are finally able to transfer out.