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  • FIRST POST
    • One.time
    • By One.time 9th Apr 19, 5:04 PM
    • 13Posts
    • 5Thanks
    One.time
    ISA 2018/19 oversubscribed - what happen now
    • #1
    • 9th Apr 19, 5:04 PM
    ISA 2018/19 oversubscribed - what happen now 9th Apr 19 at 5:04 PM
    Did some research for this year and realise the 20k limit is include all the different type of ISA. I thought 20k is for each type. Oops..

    So for 2018/19 I have put
    20k Cash ISA
    300 SSISA
    3052 IFISA
    4000 LISA
    240 HTB ISA

    I totally accept I have over subscribed by 7600

    But what will happen now?

    I guess I will have to pay tax on some of the interest gain. Can I choose which one???
Page 1
    • eskbanker
    • By eskbanker 9th Apr 19, 5:17 PM
    • 10,350 Posts
    • 12,581 Thanks
    eskbanker
    • #2
    • 9th Apr 19, 5:17 PM
    • #2
    • 9th Apr 19, 5:17 PM
    HMRC will be made aware of the issue when all of the ISAs are reported to them and they'll advise you what will happen, which is likely to be based on the order in which the subscriptions were made, rather than you getting to pick and choose how you'd like to untangle it.

    You can read up on it at:
    https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void
    Worked examples
    Last edited by eskbanker; 09-04-2019 at 5:19 PM. Reason: Concealed lengthy URL
    • DUTR
    • By DUTR 19th May 19, 8:31 AM
    • 11,839 Posts
    • 6,731 Thanks
    DUTR
    • #3
    • 19th May 19, 8:31 AM
    • #3
    • 19th May 19, 8:31 AM
    HMRC will be made aware of the issue when all of the ISAs are reported to them and they'll advise you what will happen, which is likely to be based on the order in which the subscriptions were made, rather than you getting to pick and choose how you'd like to untangle it.

    You can read up on it at:
    https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void
    Worked examples
    Originally posted by eskbanker
    My bank wouldn't allow me to over subscribe to my ISA in any fiscal year, IIRC when opening an ISA they check or you sign a disclaimer to say only one open per year.
    • eskbanker
    • By eskbanker 19th May 19, 11:28 AM
    • 10,350 Posts
    • 12,581 Thanks
    eskbanker
    • #4
    • 19th May 19, 11:28 AM
    • #4
    • 19th May 19, 11:28 AM
    My bank wouldn't allow me to over subscribe to my ISA in any fiscal year
    Originally posted by DUTR
    It's a straightforward automated validation not to exceed 20K of new money into a single account, so to the best of my knowledge all providers implement that, but of course OP's issue only arises by virtue of exceeding the annual allowance cumulatively across multiple products.

    IIRC when opening an ISA they check or you sign a disclaimer to say only one open per year.
    Originally posted by DUTR
    The disclaimer would typically say subscribing into only one of each type in any given tax year as this is what the rule is. It's perfectly acceptable to contribute to four separate ISAs in the same year (cash, S&S, LISA, IFISA), and even five if multiple cash ISAs are with a provider that supports split ISAs (thereby effectively categorising them as one).

    However, since OP paid 20K into a cash ISA as well as 240 into a HTB ISA then this would suggest that this is with two separate providers and therefore OP must have made a false declaration. While this was presumably done in ignorance it does demonstrate that it is possible to end up in this situation, and hence the question about how to get out of it....
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