paulb
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Post by paulb on Oct 24, 2019 12:48:32 GMT
I don't think it follows in that case that the management status was lost purely because the administrators were called in - in the letter to clients dated 15th of March linked to on that page, it appears the the FCA separately prohibited them from carrying on regulated activities - it could have been this which caused the loss of status?
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pip
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Post by pip on Oct 24, 2019 13:01:52 GMT
I don't think it follows in that case that the management status was lost purely because the administrators were called in - in the letter to clients dated 15th of March linked to on that page, it appears the the FCA separately prohibited them from carrying on regulated activities - it could have been this which caused the loss of status? Paul administration means that an ISA manager ceases to qualify as an ISA manager. www.gov.uk/guidance/apply-to-be-an-isa-managerApologies, I see where the 30 days comes from "A manager who has ceased to qualify must inform HMRC and each investor within 30 calendar days of the date he ceased to qualify. The notice to investors must inform them of their right to transfer their ISAs to another manager." Well if somebody doesn't exercise that right to transfer their ISA then presumably the assets are no longer in an ISA wrapper and any defaults (which under p2p HMRC rules an investor can review their portfolio at year end for defaults) can be assumed to not be in an ISA and of-settable against other p2p income.
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mason
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Post by mason on Oct 24, 2019 17:09:57 GMT
Agree with most of ilmoro 's comments, though I think it is probably the case FS will cease to qualify as an ISA manager. My sense is in the BS example, if the ISAs were found to be non-compliant they would have been voided as they were in the case of LC&F. LC&F IFISA holders face a tax bill for interest they received over the course of their investment, but will certainly be able to claim a capital loss FWIW. SVS ISA holders have been told the administrators will be liaising with HMRC to maintain the tax status of their ISAs.
BTW, I think it is vanishingly unlikely HMRC would permit trapped ISAs to lapse.
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littleoldlady
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Post by littleoldlady on Oct 24, 2019 17:30:25 GMT
Can cash held in a p2p ISA on a platform in administration be transferred out? If so can the admin make a charge for doing so even if the platform previously did not? Can funds* withdrawn in the current year from a flexible ISA be repaid into a p2p in administration in order to preserve the tax shelter pending a transfer out? If so how could such a deposit be made assuming that the deposit system on the platform has been disabled. Could one send a cheque with a letter to the Admin?
So many questions.
Edit: *I should have made it clear that I was referring to prior years allowances (the only ones I have in p2p) as picked up by @mason below
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mason
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Post by mason on Oct 24, 2019 18:27:53 GMT
Can cash held in a p2p ISA on a platform in administration be transferred out? If so can the admin make a charge for doing so even if the platform previously did not? Can funds withdrawn in the current year from a flexible ISA be repaid into a p2p in administration in order to preserve the tax shelter pending a transfer out? If so how could such a deposit be made assuming that the deposit system on the platform has been disabled. Could one send a cheque with a letter to the Admin? So many questions. Any current tax year money flexibly withdrawn from your FS ISA can be replaced in any valid current year ISA, so if you have a cash or S&S ISA you can put the money there to preserve your ISA allowance. Previous tax year money is going to present a problem as it must be replaced in the same ISA and FS ISAs may not be unfrozen before the end of this tax year. A case could be made for reopening the deposit system for this purpose.
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Post by Ace on Oct 24, 2019 20:35:50 GMT
Can cash held in a p2p ISA on a platform in administration be transferred out? If so can the admin make a charge for doing so even if the platform previously did not? Can funds withdrawn in the current year from a flexible ISA be repaid into a p2p in administration in order to preserve the tax shelter pending a transfer out? If so how could such a deposit be made assuming that the deposit system on the platform has been disabled. Could one send a cheque with a letter to the Admin? So many questions. Previous tax year money is going to present a problem as it must be replaced in the same ISA and FS ISAs may not be unfrozen before the end of this tax year. A case could be made for reopening the deposit system for this purpose. Great tip mason . I was totally unaware of this. In fact I was fairly sure you were wrong so I checked and am pleased to say that you are absolutely correct. Sorry to have doubted you.
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mjc
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Post by mjc on Oct 24, 2019 20:40:56 GMT
To
savings.audit@hmrc.gsi.gov.uk
Dear Sir,
Re: FundingSecure (in administration)
I like many others have money trapped in an IFISA that was until 23/10/19 held by FundingSecure Ltd., and have questions such as:-
1) Is cash held in a FundingSecure ISA still regarded as within an ISA wrapper?
2) Are outstanding un-repaid loans (or if repaid only in part) ditto?
3) Is the ‘Interest Accrued’, ditto (if repaid)?
4) Does the ISA have to be transferred to a new manager within 30 days, bearing in mind the money is not likely to be released by the administrators for many months? (I note ISA transfers are normally requested by the new ISA manager, except for an Inheritance APS allowance).
5) Is a current year’s ISA treated differently from a ‘previous years ISA’?
6) If the answer to (1) is NO, can the losses be offset against other taxable gains?
7) what are the implications for any ‘un-repaid withdrawals’ taken from an ISA?
8) What if any steps do I have to take?
An acknowledged of receipt of this email would be appreciated and an indication of the time scale for a reply,
ys.....
I hope this covers most most of the questions raised, I hope to post any substantive reply here. Anything else please try your luck with HMRC directly.
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mjc
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Post by mjc on Oct 24, 2019 20:42:53 GMT
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littleoldlady
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Post by littleoldlady on Oct 24, 2019 20:49:13 GMT
I think is is only relevant to FS if HMRC void the FS ISA and there is no indication that this is likely.
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stev
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Post by stev on Oct 24, 2019 22:51:05 GMT
Any current tax year money flexibly withdrawn from your FS ISA can be replaced in any valid current year ISA, so if you have a cash or S&S ISA you can put the money there to preserve your ISA allowance. Previous tax year money is going to present a problem as it must be replaced in the same ISA and FS ISAs may not be unfrozen before the end of this tax year. A case could be made for reopening the deposit system for this purpose. Great tip mason . I was totally unaware of this. In fact I was fairly sure you were wrong so I checked and am pleased to say that you are absolutely correct. Sorry to have doubted you. Unfortunately, the FS ISA appears not to be flexible if the website is to be believed. Look at the IFISA FAQs on www.fundingsecure.com/invest-with-us/ifisa, "No, our ISA is not flexible. If you withdraw funds from your ISA account and then replace them, the money you put back will reduce your allowance for the tax year in which you replenish it."
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Post by Ace on Oct 24, 2019 23:04:15 GMT
Great tip mason . I was totally unaware of this. In fact I was fairly sure you were wrong so I checked and am pleased to say that you are absolutely correct. Sorry to have doubted you. Unfortunately, the FS ISA appears not to be flexible if the website is to be believed. Look at the IFISA FAQs on www.fundingsecure.com/invest-with-us/ifisa, "No, our ISA is not flexible. If you withdraw funds from your ISA account and then replace them, the money you put back will reduce your allowance for the tax year in which you replenish it." Oh dear, that is unfortunate for FS investors. I've never invested in FS, mainly due to the many warnings on this forum, but do have the greatest sympathy for those that have. I was purely interested to learn that the ISA flexibility could be used across the 3 ISA types. I had previously thought that all flexible withdrawals could only be returned to the account that they were withdrawn from. This new knowledge means I can load my intended IFISA cash into a cash ISA at the start of the year and move the cash to my IFISA as suitable loans become available.
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mason
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Post by mason on Oct 25, 2019 5:47:29 GMT
This is probably a good thing, because it will have encouraged people to do partial transfers to another provider if they had a lot of uninvested cash on the platform.
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mason
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Post by mason on Oct 25, 2019 5:50:18 GMT
I think is is only relevant to FS if HMRC void the FS ISA and there is no indication that this is likely. The investments held within LC&F ISAs were not ISA-eligible. Hence the voiding. This is not the case with FS.
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IFISAcava
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Post by IFISAcava on Oct 25, 2019 7:01:24 GMT
Any current tax year money flexibly withdrawn from your FS ISA can be replaced in any valid current year ISA, so if you have a cash or S&S ISA you can put the money there to preserve your ISA allowance. Previous tax year money is going to present a problem as it must be replaced in the same ISA and FS ISAs may not be unfrozen before the end of this tax year. A case could be made for reopening the deposit system for this purpose. Great tip mason . I was totally unaware of this. In fact I was fairly sure you were wrong so I checked and am pleased to say that you are absolutely correct. Sorry to have doubted you. Can someone provide a source for this please? I was of the understanding that barring some unusual circumstances you had to put it back in the same account. Otherwise there would be no need to do ISA transfers, you could just withdraw from one and put in another - which as far as I know you can't as it has to be an interprovider transfer, and has to be in full for current tax year, and you can only have one of each type subscribed to (money contributed to) in current tax year.
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pikestaff
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Post by pikestaff on Oct 25, 2019 7:05:44 GMT
I'm not in FS and I'm just catching up with this discussion.
I'm posting because I disagree with the assumption in the OP that, if ISA status were lost, all losses on the loans would become deductible.
In principle, I think the loans would have to be valued as at the date ISA status was lost. Losses up to that date would have happened within the ISA and would not be deductible. Any subsequent losses would be. Any gains (by reference to the value at that date) might well be taxable. In reality, valuing the loans at that date would be extremely difficult and the amounts actually recovered by the administrators (before their costs but after other costs of recovery and sale) might well be considered the best evidence of value.
However, I think this is academic because I agree with others that ISA status will probably be retained.
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