ISA trouble?

rakesh_2

Hi

I have mistakely opened two ISA accounts in the same tax year of 07/08. I maxed out the amount of £3000 for each account - £3000 in halifax and £3000 in A+L.

I wanted to transfer the Halifax ISA to my A+L account recently but A+L refused this and sent the cheque back to Halifax. They also advised me that i needed to inform the Inland Revenue on what action to take. According to the Inland Revenue website, simply closing one one of the accounts is not an option.

I am just wondering if anyone else has been in this situation and what the Inland Revenue would do?

Lokolo

I think they will not allow you to open an ISA for this year. Not sure though.

tanith

This happened to me a couple of years ago... in fact the Inland Revenue will pick up on it wether you inform them or not... in my case they wrote to me and pointed out what I had done , but I had already realised by this time.. I had only paid a few hundred pounds in and IR allowed it to be transferred over.... they said it was obviously a mistake... not sure what they will do as its the full amount... but I'd ring them if I was you at least it will look innocent on your part if you get in first.... good luck they will probably slap your wrist...:rotfl:

oldagetraveller

I did the same some years back but closed the second account immediately I realised what had happened.
The IR did know what I had done in spite of the second account only being opened a couple of months. I received a letter from them advising I had been naughty, don't do it again etc. They asked for an explanation and confirmation that one of the accounts had been closed.
I sent a grovelling letter to which they replied telling me no further action would be taken.
As these are last years isas I'd personally 'phone the IR, explain what you've done and seek their advice about the next step. I would expect for them to require you to close one of the accounts and you'll have to pay the tax on the interest earned.

Baldur

As oldagetraveller suggests, in your circumstances I would ring the HMRC's ISA Helpline (0845 604 1701 - 08:30-17:00 Mon-Thursdays; 08:30-16:30 Fridays).