Over investing in an ISA

Over investing in an ISA

Author
Discussion

Jon1967x

Original Poster:

7,178 posts

123 months

Friday 27th March 2015
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Any thoughts on what might happen if you over invest in an ISA? I've fully invested this years allowance in a stocks and shares ISA. I've just gone through my notes and realised I had to invest a token amount in a cash ISA as part of transferring previous cash to a better rate.

I believe they have a database that tracks this type of stuff but wonder what they do when they find it? If I cashed out an amount I doubt that would make any difference.


forest07

669 posts

204 months

Friday 27th March 2015
quotequote all
Jon1967x said:
Any thoughts on what might happen if you over invest in an ISA? I've fully invested this years allowance in a stocks and shares ISA. I've just gone through my notes and realised I had to invest a token amount in a cash ISA as part of transferring previous cash to a better rate.

I believe they have a database that tracks this type of stuff but wonder what they do when they find it? If I cashed out an amount I doubt that would make any difference.
I had a friend who did this, I recall they cancelled the cash ISA and lost out on interest!

I believe it's linked via National Insurance info.

BRISTOL86

545 posts

163 months

Friday 27th March 2015
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Surely you can out as much as you like in an ISA, but the interest was only tax free on the first [whatever the limit is] ??

UrbanAchiever

184 posts

135 months

Friday 27th March 2015
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My wife did this by mistake a few years ago. First we knew of it was a letter, saying she'd over-invested and not to do it again! No penalties or actions taken against her!

Jon1967x

Original Poster:

7,178 posts

123 months

Friday 27th March 2015
quotequote all
It wasn't much and if I lose the interest on the cash isa I'll not be too upset.. Interest on 1k is prob £15.

Withdrawing it won't cancel the fact it's been invested as far as I know.

I'll wait for my slapped wrist

ellroy

7,006 posts

224 months

Friday 27th March 2015
quotequote all
Not even a slapped wrist.

You get a letter from HMRC, they take care of contacting the provider, you only need to get involved if it's incorrect or they're going to take funds from the one you wish to keep.

Dead easy.

PositronicRay

26,959 posts

182 months

Saturday 28th March 2015
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Easily done, I managed it, nobody noticed so I kept schtum.

trowelhead

1,867 posts

120 months

Sunday 29th March 2015
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Jon1967x said:
It wasn't much and if I lose the interest on the cash isa I'll not be too upset.. Interest on 1k is prob £15.

Withdrawing it won't cancel the fact it's been invested as far as I know.

I'll wait for my slapped wrist
Speak to you provider mate - I did this by mistake and barclays were able to sort out from their end!