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

MarkyMarkD

Thanks for the mention of "self transfer" which I wasn't aware of!

Mikeyorks

After my !!!!-up on this thread - you might explain it to me when you've read it !!;)

Jonbvn

You can regain the tax-free status for this money by investing in index linked savings certs. Not quite as good as ISA rates but pretty close.

walks

Oh well, it looks like i have to live with my stupid mistake now, But thanks for your help,

The Big question now is what would you do with this money!!! can you all suggest where to put this money now! i have already opened another isa account.



Many thanks
Pip

Jonbvn

walks wrote: »

Oh well, it looks like i have to live with my stupid mistake now, But thanks for your help,

The Big question now is what would you do with this money!!! can you all suggest where to put this money now! i have already opened another isa account.

Many thanks
Pip

As per my other post immediately above yours, if you are loooking for tax-free savings other than ISA's then index linked saving certificates are good. Not as flexible as most ISA's but there you go.

Mikeyorks

walks wrote: »

The Big question now is what would you do with this money!!! can you all suggest where to put this money now! i have already opened another isa account.

Pip,

I'm most dreadfully sorry for the erroneous information yesterday.

As you've opened another (min cash?) ISA - you can put £3k in immediately. And then a further £3.6k on 6.4.08.

Then depends if you wish to keep the balance to start to refurbish your ISA funds? In which case a good fixed rate Bond for a year? Otherwise, as previous post, you get 'tax free' with the NS&I index linked certificates. Max is £15k - which (£15k + £3k + £3.6k) leaves you £400 for that bottle of wine someone suggested for drowning the sorrow?

http://www.nsandi.com/products/ilsc/index.jsp

Again my apologies - normally research my replies pretty thoroughly if I'm unsure. Just not well enough on this occasion.:o

debbie42

Mikeyorks wrote: »

As you've opened another (min cash?) ISA - you can put £3k in immediately.

Only if the OP hasn't already used this year's allowance. I couldn't see mention of it in the thread?

PBA

It is possible for the bank to reopen the ISA and return the £22k into it, whether or not it's the customer's fault or that of the bank. It would be at the bank's discretion, but they're not going to be too keen for £22k to walk out the door so they may well try and help. The ISA rules do allow for this, as I've seen it done in the past.

Mikeyorks

debbie42 wrote: »

Only if the OP hasn't already used this year's allowance.

Sorry - but I don't think you've read it closely enough. It comes under the self-transfer guidance. Where, within the same tax year, you can legitimately contribute your full allowance to a new ISA if you have closed (ie taken out all funds - inc previous years) your old ISA. Even though you may have fully funded the old ISA in the same tax year. It's termed a 'self transfer' ... but its not recommended. As the withdrawal has to be total - and the re-funding is restricted to current year allowance.

Part of the HMRC guidance here :-

12.33 An ISA is closed for this purpose when all the funds held in the ISA are withdrawn (including any subscriptions for earlier years) and no further subscriptions are made to the ISA in the same tax year.
For Example
Mrs Cooper subscribes £3000 to a mini cash ISA with Anybank plc on 20 April 2005. She closes it on 30 November 2005, then subscribes to a second mini cash ISA with Betterhomes Building Society on 3 December 2005. The subscriptions to the second mini cash ISA are valid.

beingjdc

The Government let people reopen their Northern Rock ISAs that they'd closed. Why not just say you'd heard a rumour the Bank was insolvent and panicked, but now you've thought twice about it!