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Post by gravitykillz on Apr 4, 2020 8:08:59 GMT
I think I have exceeded my allowance as I have a lifetime and cash isa. What happens now ? Would love to hear feedback from others who may have been in this situation and what happened afterwards.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Apr 4, 2020 8:12:53 GMT
You can subscribe to two different types of ISA in the same year provided the total is not over £20,000.
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archie
Posts: 1,836
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Post by archie on Apr 4, 2020 8:20:42 GMT
If you exceed the allowance it's last in, first out for the order of reversal. HMRC should contact you if the rules are breached.
There may be tax to pay if the excess investment generated interest.
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Post by gravitykillz on Apr 4, 2020 8:26:32 GMT
Oh ! Cant blame this on corona either. I just realised I exceeded this morning when i realised I had a lifetime isa as well and the allowances were linked.
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Post by gravitykillz on Apr 4, 2020 8:29:11 GMT
My total is prob 23k
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Post by Deleted on Apr 4, 2020 8:39:27 GMT
Yes I did it, took out two in the same year for the twice the full amount. Had to take one back. No biggy
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Post by moonraker on Apr 4, 2020 15:27:50 GMT
A year or two ago, I commented that I had two cash ISAs overlapping for a couple of weeks in the same year due to a provider cocking a transfer up. I've had no repercussions.
Twenty years ago my ailing father took out two cash ISAs in the same year, causing his expensive accountants to bill him for the time it took them to sort things out with HMRC. I don't know if HMRC spotted this, or whether it became apparent when the accountants were sorting through Dad's paperwork.
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Post by gravitykillz on Apr 4, 2020 19:18:33 GMT
Good chance I might get away with it then. Thanks!
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Stonk
Stonking
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Post by Stonk on Apr 4, 2020 23:55:57 GMT
Good chance I might get away with it then. Thanks!
I'm certain that HMRC detect such things automatically. ISAs are linked to your NI number, and providers tell HMRC about subscriptions associated with an NI number.
So it probably comes down to whether HMRC can be bothered to pursue it. I'd imagine they have a cut-off below which they don't bother. In an infinitely-resourced HMRC, they'd reverse any oversubscription, even £1 over, but in the real world they'll let the little and probably accidental ones go unchallenged and concentrate on the people who put £20K in each of multiple ISAs in one year.
£3K over ... I wouldn't like to guess which side of the fence you are!
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Post by gravitykillz on Apr 5, 2020 5:45:39 GMT
Well I will leave it for now and update this thread if there are any repercussions.
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archie
Posts: 1,836
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Post by archie on Apr 5, 2020 6:08:49 GMT
HMRC will usually contact you after the tax year has ended. If you decide to turn yourself in, ring the ISA helpline 0300 200 3312.
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Post by gravitykillz on Apr 5, 2020 7:57:47 GMT
HMRC will usually contact you after the tax year has ended. If you decide to turn yourself in, ring the ISA helpline 0300 200 3312. If I'm going down I'm taking you all with me. I will tell them archie made me do it!
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Apr 5, 2020 12:32:33 GMT
just withdraw 3k, job done.
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Post by gravitykillz on Apr 5, 2020 13:07:24 GMT
just withdraw 3k, job done. Nah. I'm curious about what will happen. Might be an interesting experiment.
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Post by bernythedolt on Apr 5, 2020 13:13:04 GMT
just withdraw 3k, job done. Nah. I'm curious about what will happen. Might be an interesting experiment. Ah, intentional fraud. Jail for you then. 🤣
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