Accidentally paid in more than £20,000 in one tax year to 2 cash ISAs

Hello I created a new cash ISA in July 2023 and paid in £20,000. I mistakenly then paid in £2,000 to a different pre-existing cash ISA in October 2023. I have tried several times to phone HMRC but have waited over an hour without being connected. Please can you advise what action I should now take. Thanks

Hi,
As £20000 is the maximum you can put into any combination of ISA's in a tax year, you will need to contact the ISA provider, who you saved £2000 with, so that they can repay the sum to you and bring you back in line with the ISA rules.
Thank you.

Many thanks. I have now removed the additional £2000

Have opened three ISA accounts. HSBC opened in Oct 2023 - Have 15000 GBP Halifax opened in March 2024 - Deposited and with draw all in two days. NatWest opened in March 2023 - Have opened and deposited 20000. GBP until now.

Hi,

As you can only deposit funds in one cash ISA for the current tax year, one of the accounts will no longer qualify as tax free.

HMRC will contact you after 5 April 2024 to confirm the position.

Thank you.

when my ISA matures (£20,000), it rolls over and still gets tax relief. And can I buy another £20k? And leave everything in for next year and buy another ISA for £20,000. and do the same every year even though the limit to buy is £50k ,is it all tax free

Hi ,
 

You can . Thank you .

Hi How can I void the first ISA I created, in this example the £20k isa opened in July 2023 to ensure the second ISA created receives the tax free allowance (ISA opened in October 2023) Both are flexible isa so if I remove the money from the original ISA will that suffice?

Hi Gh1,
As this is for the 23/24 tax year, no. you will now need to wait for HMRC to contact you as one of the accounts will not qualify to be tax exempt.
Thank you. 

Hi, I have a Stocks and Shares ISA and have used up my full allowance this year. Due to recent stock market volatility, I decided I would prefer to move my funds to a new Cash ISA. To be certain of getting a bonus rate I needed to make a deposit of 1 pound. I made the deposit to the Cash ISA and withdrew 1 pound from the Stocks and Shares ISA. It took a day or two for that withdrawl to be processed. So technically, I will have been 1 pound over my allowance for a few days. Is this something HMRC are going to be worried about ?

Hi ml1,
If you have oversubscribed in the current tax year, you can contact your ISA provider to instruct them to remove overpayment amounts to correct the error. If the error occurred in a previous tax year you should not do anything. You should not attempt to correct the situation. HMRC will write to you after the end of the tax year in question if appropriate.  
Thank you.

Hello, I have recently paid £20,000 into an ISA. Can remove £4,000 and pay into a Lifetime ISA in the same tax year without going over my yearly ISA allowance. Thanks

Hi Craig,
Please see guidance here:
Individual Savings Accounts (ISAs)
Thank you. 

 

Hi - I have inadvertently added into and overpaid into my existing Cash ISA in the last week of the tax year - forgetting that I has already taken out a stocks and shares ISA in mid 2024. I realised my mistake within 2 days of depositing the additional funds and I contacted the ISA provider to ask whether they could "repair" the cash ISA and repay the overpayment As I expect they. were overloaded at year end they have not yet responded nor taken any remedial action As we are now in a new tax year can you explain what happens next and how this will be remedied thank you

Hi david53,
Please find guidance at:
Individual Savings Accounts (ISAs)
If you need further help please contact:
Income Tax: general enquiries 
Here you could use 'Ask Online.
Thank you.