If a company goes bust?

NebulaNova

Hi, so for example, I pay in £20k for the 2025-2026 tax year with Plum.

Plum goes bust next month and I make a claim for that £20k and get it back. Have I lost my 2025-2026 ISA allowance?

Thanks

oddcueball52

How Your Money Is Protected | Plum

Plum is not a bank and would not be held by them, it will be "secured in segregated accounts with one of our partner banks." From my understanding if Plum fails, your money will be in the partner bank and would able to transfer to an ISA provider.

You would only able to claim "If a shortfall occurs as a result of Saveable’s failure, you may be able to claim FSCS compensation."

nottsphil

If Plum fails after it's received your funds but not yet allocated it to an ISA provider, then it's going to be far more than the allowance you'll be worrying about. You'll be fretting over how many pence in the pound the receiver will be awarding you several months later. Invest directly with a provider (at a lower rate like I've just done) and it'll be a different story.

eskbanker

https://forums.moneysavingexpert.com/discussion/6662637/if-a-company-goes-bust

No, you don't lose the allowance, you're then entitled to make a defaulted subscription to the value of the failed ISA which doesn't count towards the annual contribution limit:

Where a cash ISA manager is declared in default by either the Financial Conduct Authority or the Financial Services Compensation Scheme, the investor may make a single defaulted cash account subscription outside of the annual subscription limits to:

a new ISA

an existing ISA

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#subscriptions-that-do-not-count-towards-the-annual-subscription-limits

masonic

https://forums.moneysavingexpert.com/discussion/comment/81949410#Comment_81949410

This is misinformation from the FSCS website, as your money isn't saved in Plum. If Plum (meaning Saveable Limited, FRN: 739214) were to go bust, you would reclaim your money direct from the FSCS protected partner banks. Any money you sent Plum after it went bust would be more problematic, but client money rules apply in this case and the Special Administrators would be expected to treat as ring-fenced client money outside of the administration. In practice it would likely be bounced back.