Accidental ISA Exceed - next steps?

Hi ,
 

If you have oversubscribed in the current 2024/25 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, then 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 .

Hi SandersQs,

Please refer to guidance at Individual Savings Accounts (ISAs).
HMRC will contact you in due course regarding the excess.

Thank you.

Hi - I too have accidentally overpaid %5 into my ISA on the 23 March - after adding cash into a holding account for a stock and shares ISA. I had asked the chat bot if the holding account would count against my ISA and it had said no, but after adding, it showed as it did count. I instantly removed the funds, so as to not gain any interest etc. But it still showed as using a proportion of this years ISA allowance, which is already fully used. I spoke to a human at the company that details with the ISA, and they gave me my new ISA details, and said to contact HMRC. I looked up the HMRC number for ISAs, and I have tried to contact them twice, but the auto attendant doesn't recognise the term "ISA" when it asks, and later it dropped my call as the queue was too long. Do HMRC contact people as a matter of course, or should I still be trying to contact them? And, if I do need to contact them - what is the best way? Thank you.

Hi David Preston


Yes HMRC will contact you in due course to advise of any action required.

Thank you

 

Have exceeded ISA limit and been advised to contact HMRC. What action do I need to take

Hi,

The ISA is limited to £20000. In situations where you have saved in excess of this sum in your ISAs in the tax year, you will need to discuss with your ISA providers, the removal of the excess from your ISA, incuding any interest the excess generated, and return it to you.  

The excess interest is taxable and should be declared.

Thank you.

Hi, I deposited £19,700 and £300 into my ISA accounts at Bank A and Bank B, respectively, on 6th April 2024. This sum altogether equals the annual ISA allowance for the 2024/25 tax year. However, my wife mistakenly transferred £10,000 to my ISA account at Bank B at the end of April. I attempted to contact Bank B to inquire about withdrawing the excess funds immediately, as the total in my ISA accounts exceeds the annual ISA allowance. Unfortunately, Bank B refused to accommodate this request. Consequently, I now have £19,700 in my ISA account at Bank A and £10,300 in Bank B. Can I simply declare the interest earned in my ISA account at Bank B as taxable in the self-assessment? Thank you!

Hi, I learn from some friends about the maximum allowance is £20000 of ISA account for every tax year and the money in ISA account can be accumulated to next tax year. Question 1. If I transfer £20000 to Bank A's ISA 2 years Fixed rate account in tax year 2022/23, could I deposit another £20000 to Bank B's ISA Fixed rate account in tax year 2023/24? Is this against the ISA's rule? Question 2. If this against the ISA's rule, what can I do to correct it?

Hi ChiSum Yip,
If you have paid too much into your ISA's, you are not required to do anything to correct the situation.
HMRC will write to you after the end of the tax year in question.
Thank you. 

 

Hi modemode,
If you have paid too much into your ISA's, you are not required to do anything to correct the situation.
HMRC will write to you after the end of the tax year in question.
Thank you. 

 

Hi, I just turned 18 and my family urged me to open a LISA account to deposit money in (4000 pounds). However, due to complications I accidentally deposited another 20k into the account (stocj and shares) exceeding its limit. How do I resolve the situation?

Hi johnny johnny,
You will need to speak to your LISA provider about this.  
They will refund the excess paid into it.  
Any interest that arises from the excess will be taxable.
Thank you.

 

Thanks for your reply. Actually I called my LISA service provider yesterday, Ask me to call HMRC 03002003300 instead, is that correct?

Hi johnny johnny,
No, we have a specific team that deal with your type of situation and they will contact you in due course regarding any further action to take.
Thank you.
 

From 2022 April 6 to 2023 April 5 I accidently deposited £20,045 into a SAS ISA, £45 of which were bonuses that I did not realize counted toward the allowance, and a further £2400 into help to buy ISA. Not realising that this also counted towards my allowance, the stocks and shares Isa was the one in breach of my £20000 Isa allowance, I've tried contacting the provider, called HMRC 3 times and sent a letter to HMRC no one has been able to inform me on what I should do to correct this hones error or been able to help me. I really don't know what to do now, there seems to be no support around this legislation.

Hi Cai,
HMRC will contact you in due course to advise of the next actions.
Thank you.

Hi, I have two incidences that need resolving regarding a Help-to-Buy ISA. I have accidentally exceeded my yearly ISA allowance back in tax year 2020/21 as I had opened a stocks and shares ISA to the capped amount, towards the end of the tax year (forgetting I already had a Help-to-Buy). I also realised I accidentally kept my direct debit going for it when I moved abroad for a bit for work so it continued to deposit money into the Help-to-Buy while I was away. I tried called my Help-to-Buy ISA provider last week, but they asked me to call HMRC 03002003300 - I did and I am still none the wiser on what to do, because I could not get an answer. What should I do now? How can I resolve this? Please could you provide some directions on what I should do? Thank you in advance!

Hi,
Any excess over the ISA limit will not have the protection and any interest will be classed as taxable income. Also as a non resident you cannot pay into an ISA so any interest earned in this period will also not be exempt. You can contact us with details to tell you if any tax is due to be paid.
Thank you.

Hello, In August 2023 I paid just under £20,000 into an ISA with Bank A. Then in October 2023 a family member paid in ~£5000 to a loyalty ISA account I have with Bank B, with us forgetting this account was actually an ISA too. I used this money to travel. Obviously, this means the £20,000 limit was exceeded for the tax year 2023/24. I have only just realised this happened and so the money I used for travelling from Bank B has now been spent, and the Bank A ISA has been accruing interest ever since and is set to mature soon. What happens to my money now? Will I lose the money? Will I pay tax on interest gained over the £20,000? If so, how does that all work? I find this all very confusing so any help would be very much appreciated.

Hi LC43102,
HMRC will contact you in due course as some of the interest earned will no be protected by the ISA rules.
Thank you.