I think i have made a big mistake !!!!!

walks

:eek:

Can anyone please help me, I have just closed an account with £22000 in not realising that it was my mini isa :eek:

Can anyone suggest where i came put this money to earn me a miximum benifit, I can`t belive i`v been so stupid.:o


Many thanks


Pip
:mad:

wishiwasarichgirl

Have you only just closed it? The first thing I would do is contact the bank, explain it was a mistake and see if there is any way they could re-open it for you - dunno if they can do this?

MarkyMarkD

No, they can't.

If it's your mistake, you are stuffed.

If it's their mistake, they can get HMRC permission to reinstate the account.

walks

I rang today when i realised What i had done, to be told that the money has now left my account,

Thanks
Pip

Mikeyorks

They can re-open it, without tax status loss - if they wish (provided you don't touch the £22k in the meantime). Extract from HMRC instructions to ISA Managers :-

12.5 ISA managers may re-open a maxi or mini ISA where the ISA is closed earlier in the same tax year, and the investor wants to resume subscriptions. ISA managers must report all subscriptions made in the year on the end of year return of information (paragraph 14.1).

....talk to them, urgently.

Later

To clarify. If you 'withdrew cash' in error ... you can't put it back in. But if you close the account .... you can ask for it to be re-opened within the same tax year. But as 'close' implies you've taken all the money out, it all starts to get a bit incestuous. However - the para quoted above does seem to stand alone .... and fit your situation.

If they won't do it - you can put £3k back into an ISA immediately .. even if you have contributed already this year. You can only do that (it comes under the 'self-transfer' heading in the ISA guidance) where you have closed an ISA (inc withdrawing all earlier year funds) in this tax year and fund the 2nd ISA after the closure.

CannyJock

Take some of the tax-free interest you've accumulated and treat yourself to a good bottle of wine. It won't change your tax status but will make you feel a whole lot better.

If you've not added to your ISA for 06/07 you can put £ 3000 into a new one?

I've just completed a 3 month websaver bond with HBOS at 6.71%. Phoned up to close my normal HBOS websaver and they told me about that so I stuck with them. Put £30,000.00 in it and I got £30,405.91 back today.

ICICI account is offering 6.41%, I just opened one today to pay in some regular saver accounts about to mature. I'll keep it in there while I see what new regular savers I'm eligible for.

walks

Thank you very much mike and john,

Mike i am going to ring I F again tomorrow and see if they will do this, I will keep everything crossed, I will let you know how i get on.

Again many thanks to you all



Pip
x

MarkyMarkD

Mike

The clause you quote doesn't allow the £22,000 to be reinvested. All it does is allow the ISA manager to reopen a closed ISA account - which doesn't reset the amount which can be subscribed in the year at all. In other words, if the OP hasn't subscribed in the current year, there's no benefit at all in "reopening" the existing account - they can simply open a new one elsewhere.

The only circumstances in which it would be beneficial to reopen the account is if only part of the current year subscription has been made - in which case the account could be reopened, and the remaining amount added.

The tax relief on the existing amount has gone for a burton.

masonic

Mikeyorks wrote: »

They can re-open it, without tax status loss - if they wish (provided you don't touch the £22k in the meantime). Extract from HMRC instructions to ISA Managers :-

12.5 ISA managers may re-open a maxi or mini ISA where the ISA is closed earlier in the same tax year, and the investor wants to resume subscriptions. ISA managers must report all subscriptions made in the year on the end of year return of information (paragraph 14.1).

Do you think this also means that subscriptions can be reinstated? It doesn't say that. I interpret it as the ISA can be reopened, empty, so that further subscriptions up to the personal allowance can be made. This is important, because this route might prevent the OP from going down the 'self-transfer in error' route, since "ISA managers must report all subscriptions made in the year on the end of year return of information".

Mikeyorks

MarkyMarkD wrote: »

Mike

The clause you quote doesn't allow the £22,000 to be reinvested. .

Mark,

On reflection .... apologies to you and the OP ... you appear to be wholly correct. I couldn't (my 'Later' note) quite relate my quoted para with the fact that money withdrawn by the Investor cannot be re-instated. My rationale that 'closure' was somehow different didn't really ring true. As elsewhere in the HMRC notes it's quite clear that closure must clearly imply the account has been emptied.

walks

....sincere apologies for misleading you. Your Bank should be unable to re-instate the account as it was (as above). But you can (no matter what you've contributed this tax year) - at least open an ISA elsewhere and put a full £3k into it under the 'self transfer' rules. Bit of cold comfort ... and really sorry for the duff info. Don't normally do it ...:o

Mikeyorks

masonic wrote: »

I interpret it as the ISA can be reopened, empty, so that further subscriptions up to the personal allowance can be made.

Concurred ..... with apologies, as above.:o