UBL UK ISA transfer - need advise

Summerof26

Hello

I can't find this on other threads about UBL.

I sought to transfer old ISA money from a cash ISA (previously a fixed rate ISA with my normal bank).

I did everything through the UBL website which said that the money has to go through into a funding account. So I made a payment (transfer) out of my cash ISA into that funding account.

This now turns out to be a current account. UBL apparently can't shift it from there into their ISA, and my bank can no longer accept it back as ISA because it doesn't have the ISA wrapper anymore.

I can't believe that this happened simply by mistake - and insufficient information from UBL, as I did not know that the funding account is basically a current account, this was not clear from their steps.

Is there anything that can be done to keep it as a ISA, to undo anything, can UBL not change it to their ISA?

Thank you for any advise. I called HMRC who say they can't do anything, my normal bank also says they can't do anything.

refluxer

While UBL do offer current accounts, they wouldn't operate as a funding/holding account for an ISA because, as you've discovered, any money paid into one would lose it's ISA status. It's possible they may require you to link a current account (which could normally be with another bank if you wanted) but this would only be used for adding new ISA subscriptions from the current tax year and wouldn't be required when transferring in funds from another ISA elsewhere.

I've not held an ISA account with UBL personally, but you would normally open the new ISA account and submit a transfer request to UBL so that they can transfer the ISA funds on your behalf whereas it sounds like you've opened the account and withdrawn the money from the old ISA yourself, meaning that it's automatically lost it's ISA status. Even if the money does have to be transferred into a funding account first, this would still require UBL to arrange the transfer.

I doubt there's anything that can be done to rectify this situation unfortunately as it sounds like you might have misunderstood what was required rather than UBL acting negligently. This other UBL account does sound odd though - did they open it alongside the ISA or did you open it separately ?

t0rt0ise

I had a look on the UBL website. They do seem to have a strange system with funding accounts but that seems to be for putting in new money and not for an ISA transfer. The bank always does a transfer for you. If you haven't used your £20,000 limit this tax year you can put that much in as new money.

Summerof26

https://forums.moneysavingexpert.com/discussion/comment/82054649#Comment_82054649

They opened it alongside the ISA, I did not opt in for it, there was no information that it is a current account/account that makes the money non-ISA.

Summerof26

https://forums.moneysavingexpert.com/discussion/comment/82055362#Comment_82055362

I have used this year's allowance already in full. I paid the sum into that isa through mobile banking app of my normal bank.

I was completely unaware, for UBL, that the funding account is a current account that makes the money non-ISA. Why not call it by what it is, why give it a misleading name, it was not clear in the steps when opening the ISA account.

I also tried to make a ISA transfer out to my normal bank from UBL to revert it, but UBL refused it, saying that it is not ISA - but it is their process that made it non-ISA.

I have dealt with several ISA products and never has any issues.