mrk
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Post by mrk on May 1, 2019 10:54:54 GMT
Just got an email from Ablrate saying:
I'm not entirely clear what that means: do I need to do that only if I want to add new funds in the current tax year? Or in any case? Edit: i.e. even if I only want to re-invest existing funds from previous years.
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archie
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Post by archie on May 1, 2019 11:05:03 GMT
Just got an email from Ablrate saying: I'm not entirely clear what that means: do I need to do that only if I want to add new funds in the current tax year? Or in any case? Edit: i.e. even if I only want to re-invest existing funds from previous years. Yes. See here.
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corto
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Post by corto on May 1, 2019 11:54:41 GMT
That page is not particularly clear. I think one question is: If you don't put fresh money in will it stay an ISA? I'd guess so. Them asking does not seem to have a legal background, too? (No other provider asks..)
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archie
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Post by archie on May 1, 2019 12:00:23 GMT
That page is not particularly clear. I think one question is: If you don't put fresh money in will it stay an ISA? I'd guess so. Them asking does not seem to have a legal background, too? (No other provider asks..) Yes, it remains an ISA. When you open an ISA it's often deemed a continuous authority but under HMRC rules :-
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justme
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Post by justme on May 1, 2019 13:33:38 GMT
It results in one not being able to subscribe to another ifisa ever if one has a ablrate one and has not contributed to it in previous year. Does not sound right
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archie
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Post by archie on May 1, 2019 13:40:28 GMT
It results in one not being able to subscribe to another ifisa ever if one has a ablrate one and has not contributed to it in previous year. Does not sound right No it doesn't. The continuous authority is for convenience so you don't have to make a new application every year. Some platforms require an application each year you subscribe. If you have an IFISA with ablrate but don't wish to subscribe that year you are free to subscribe to another platform.
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corto
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Post by corto on May 1, 2019 13:53:29 GMT
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archie
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Post by archie on May 1, 2019 13:55:20 GMT
Yes, you can transfer previous year ISA money to as many ISAs/IFISAs as you want. Check fees to exit though.
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blender
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Post by blender on May 1, 2019 15:17:56 GMT
Ablrate charges £100 for each ISA transfer out, regardless of size. It is taken from the funds removed, not charged as a fee on the account. So, make sure that you do not transfer small amounts to multiple providers. £100 from £20k looks ok at 0.5%.
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justme
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Post by justme on May 1, 2019 18:23:50 GMT
It results in one not being able to subscribe to another ifisa ever if one has a ablrate one and has not contributed to it in previous year. Does not sound right No it doesn't. The continuous authority is for convenience so you don't have to make a new application every year. Some platforms require an application each year you subscribe. If you have an IFISA with ablrate but don't wish to subscribe that year you are free to subscribe to another platform. You have to confirm that you are not subscribing to any other ifisa in the same tax year. Here is copied from what we have to agree to: "If your personal details are accurate and up to date, please read the declaration below and confirm you agree with the details by clicking on the link below. I declare that: All subscriptions made, and to be made, belong to meI am 18 years of age or overI have not subscribed, and will not subscribe, more than the overall subscription limit in total to a cash ISA, a stocks and shares ISA, and an innovative finance ISA in the same tax yearI have not subscribed, and will not subscribe, to another innovative finance ISA in the same tax year that I subscribe to this innovative finance ISAI am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties. I will inform Ablrate.com if I cease to be so resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such dutiesI completed my original application form for my ISA to the best of my knowledge and believe that the information provided is still true and accurateI agree to Ablrate.com Investor and Innovative Finance ISA Terms and Conditions"
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ilmoro
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Post by ilmoro on May 1, 2019 19:13:46 GMT
No it doesn't. The continuous authority is for convenience so you don't have to make a new application every year. Some platforms require an application each year you subscribe. If you have an IFISA with ablrate but don't wish to subscribe that year you are free to subscribe to another platform. You have to confirm that you are not subscribing to any other ifisa in the same tax year. Here is copied from what we have to agree to: "If your personal details are accurate and up to date, please read the declaration below and confirm you agree with the details by clicking on the link below. I declare that: All subscriptions made, and to be made, belong to meI am 18 years of age or overI have not subscribed, and will not subscribe, more than the overall subscription limit in total to a cash ISA, a stocks and shares ISA, and an innovative finance ISA in the same tax yearI have not subscribed, and will not subscribe, to another innovative finance ISA in the same tax year that I subscribe to this innovative finance ISAI am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties. I will inform Ablrate.com if I cease to be so resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such dutiesI completed my original application form for my ISA to the best of my knowledge and believe that the information provided is still true and accurateI agree to Ablrate.com Investor and Innovative Finance ISA Terms and Conditions" And? Not sure what point you are trying to make. You can open as many IFISA as you like but you can only 'subscribe' ie put new money into one of them. You can transfer (not the same as subscribing) to any, all or some of those you open (actually no requirement to money in, the manager will just shut the account at the end of financial year). Continuing authority merely means that if you sign the declaration one year, you are still bound by it the following year so dont have to sign again but it lapses if you dont subscribe or transfer funds that year.
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corto
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Post by corto on May 1, 2019 20:42:20 GMT
Can somebody point out where the word "subscribe" is legally defined in the sense that it does mean "paying fresh money in"?
The word "subscription" is used with different meanings across platforms
1) opening an account (this in some sense is the natural meaning: eg subscribe for a journal or news feed)
2) opening and paying fresh money in
3) opening and paying any money in (like only transferring previous year's funds)
4) holding it (with money in (or not) that still does work for you and produces returns)
Some government pages for example say things like this "You are only permitted to hold one Innovative Finance ISA account each tax year. Lenders will be able to open a new Innovative Finance ISA with a different P2P platform each tax year."
"hold" ?
"one only"?
a swamp of words really
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justme
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Post by justme on May 1, 2019 21:30:25 GMT
You have to confirm that you are not subscribing to any other ifisa in the same tax year. Here is copied from what we have to agree to: "If your personal details are accurate and up to date, please read the declaration below and confirm you agree with the details by clicking on the link below. I declare that: All subscriptions made, and to be made, belong to meI am 18 years of age or overI have not subscribed, and will not subscribe, more than the overall subscription limit in total to a cash ISA, a stocks and shares ISA, and an innovative finance ISA in the same tax yearI have not subscribed, and will not subscribe, to another innovative finance ISA in the same tax year that I subscribe to this innovative finance ISAI am resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings & Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in a civil partnership with, a person who performs such duties. I will inform Ablrate.com if I cease to be so resident or to perform such duties or be married to, or in a civil partnership with, a person who performs such dutiesI completed my original application form for my ISA to the best of my knowledge and believe that the information provided is still true and accurateI agree to Ablrate.com Investor and Innovative Finance ISA Terms and Conditions" And? Not sure what point you are trying to make. You can open as many IFISA as you like but you can only 'subscribe' ie put new money into one of them. You can transfer (not the same as subscribing) to any, all or some of those you open (actually no requirement to money in, the manager will just shut the account at the end of financial year). Continuing authority merely means that if you sign the declaration one year, you are still bound by it the following year so dont have to sign again but it lapses if you dont subscribe or transfer funds that year. To me the words " I will not subscribe to any other IFISA in the same year that I subscribe to this IFISA" mean that by signing it I subscribe to this IFISA even though I do not put new money in it
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ilmoro
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Post by ilmoro on May 1, 2019 22:03:17 GMT
And? Not sure what point you are trying to make. You can open as many IFISA as you like but you can only 'subscribe' ie put new money into one of them. You can transfer (not the same as subscribing) to any, all or some of those you open (actually no requirement to money in, the manager will just shut the account at the end of financial year). Continuing authority merely means that if you sign the declaration one year, you are still bound by it the following year so dont have to sign again but it lapses if you dont subscribe or transfer funds that year. To me the words " I will not subscribe to any other IFISA in the same year that I subscribe to this IFISA" mean that by signing it I subscribe to this IFISA even though I do not put new money in it That definition would prohibit you opening an IFISA in order to transfer a previous years ISA subscriptions to it. Previous years ISA subscriptions are exempt from the rules on ISA subscriptions (ie 1 of each type, max £20k etc). There is no requirement to actually subscribe when an application has been made. I opened multiple IFISA last year with the idea of transferring old ISA to them but then never did it, those ISA are still active should I wish to transfer cash to them or pick one as this years IFISA. Continuous authority last for the application year & the following year even if no subscriptions made in application year - just had the expiry note from Ablrate as my 2017 (never subscribed to) is now lapsed.
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Post by Ace on May 1, 2019 22:49:23 GMT
And? Not sure what point you are trying to make. You can open as many IFISA as you like but you can only 'subscribe' ie put new money into one of them. You can transfer (not the same as subscribing) to any, all or some of those you open (actually no requirement to money in, the manager will just shut the account at the end of financial year). Continuing authority merely means that if you sign the declaration one year, you are still bound by it the following year so dont have to sign again but it lapses if you dont subscribe or transfer funds that year. To me the words " I will not subscribe to any other IFISA in the same year that I subscribe to this IFISA" mean that by signing it I subscribe to this IFISA even though I do not put new money in it From an English language perspective you are entirely correct. The dictionary definition of 'subscribe' can equally mean: 'to pay in to', or 'to sign up to'. However, from an ISA regulations perspective it is solely taken to mean 'to pay new money in to'. I can't find this defined anywhere, but it is universally accepted. Like ilmoro, I signed up to many IFISAs in the last couple of years (at least 25), but I only paid new money in to one of them per tax year. I successfully transferred old ISA cash in to all of the others without any complaints from HMRC.
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