ISA's help

ericl3ung · 29 September 2019 at 10:34PM

I have an H2B ISA with Barclay that I opened last tax year.
I recently opened a Cash ISA (this fiscal year) with Virgin Money but I paid into it.

What will happen?

and does Virgin Money have ISA Splitting where I could pay into both H2B and Cash ISA?

eskbanker · 30 September 2019 at 12:42AM

ericl3ung wrote: »

I have an H2B ISA with Barclay that I opened last tax year.
I recently opened a Cash ISA (this fiscal year) with Virgin Money but I paid into it.

What will happen?

The way you've worded that implies that you haven't paid into your HTB ISA this tax year, in which case you won't have any issue.

However, if you have paid into two cash ISAs (HTB being a subset of cash ISA) in the same tax year without them being with same provider supporting split ISAs (neither Barclays nor Virgin do this) then you'll fall foul of HMRC's year-end assessment.

https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void and https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695897/worked_examples_of_repairs_and_voiding.pdf outline how this may be handled but HMRC's steer to the ISA manager is:

When you find out (usually from the investor) that the investor has subscribed to a disallowed combination of ISAs, or has exceeded the overall ISA subscription limit, you should advise the investor that HMRC will contact them in due course. You should not give any advice to customers, as you may not have all of the relevant facts or be certain of the action that HMRC will take.

If the investor wishes to contact HMRC to discuss the error, they can phone the ISA Helpline.

ericl3ung · 30 September 2019 at 8:11AM

Thanks.
Whilst I have a 14 day cooling period, what providers allow splitting?

eskbanker · 30 September 2019 at 11:14PM

ericl3ung wrote: »

Thanks.
Whilst I have a 14 day cooling period, what providers allow splitting?

See https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-0334234523-3

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