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Posted Thu, 18 Apr 2024 17:30:05 GMT by Dian Lu
Hello, I have a question regarding exceeding the ISA allowance. I have topped up GBP 20,000 in an ISA provider earlier this month for my stock ISA allowance this year. Yesterday, I tried to top up GBP 5,000 fund as general investment (instead of ISA) in another provider, but the money I transferred to the provider has been automatically allocated to the ISA account I have with this other provider because their system has been designed to do so. I did not intend to add the fund of GBP 5,000 to ISA as I am aware I have already used up my GBP 20,000 allowance for the year. Now the provider explained to me that I have oversubscribed ISA because this GBP 5,000 has been allocated to ISA. Could you please advise what I can do to rectify this? I want to be fully compliant with the ISA policy and believe this oversubscription is resulted from the issue from the provider. Thank you
Posted Wed, 24 Apr 2024 13:22:58 GMT by HMRC Admin 25 Response
Hi Dian Lu,
The excess payment will not attract the ISA relief and any interest or gain will be taxable.
HMRC will contact you in due course to advise.
Thank you. 

 
Posted Tue, 09 Jul 2024 10:27:06 GMT by Michael647
Good morning, My provider now offers an option to move money from previous tax years from my stocks and shares ISA into a cash ISA. I opened the cash ISA in their system as designed with £1 which would then allow me to move the money from the Stocks and shares ISA. I have since had a thought that as I already have subscribed to the full cash isa amount this tax year with another provider I have possibly oversubscribed by £1. This only just happened yesterday and the cash isa is sitting in my account with just the £1 in it. ( I need the cash isa open to move money out of my stocks and shares(previous years ISA's) and into cash so as to consolidate for old age/retirement as i am 66 in October) Could I perhaps leave it as is and declare the £1 as savings and subject to possible taxation ? or As it only happened yesterday, reverse the procedure and take the £1 out ? (This would mean the cash isa is not complete therefore I cannot move money into it according to my provider which would mean i cannot do any consolidation until next April's new ISA allowance) Please could you advise on the best course of action. Many thanks in advance.
Posted Tue, 16 Jul 2024 12:15:19 GMT by HMRC Admin 19 Response
Hi,

We cannot give financial advice. You would need to seek professional advice.

Thank you.

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