Accountants call on HMRC to protect ISA exemptions for Northern Rock Savers
Many Northern Rock customers who withdrew their cash en masse this month and invested the funds in another bank have jeopardised their tax exemptions on cash ISAs. This is because they would not have gone through the formal process required when transferring ISA funds, according to leading mid-tier accountancy firm, Baker Tilly.
Transferring Individual Savings Accounts (ISAs) from one organisation to another is possible but requires formalities to be met if the account holder is to continue to enjoy tax-free interest.
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Slow response time by the Chancellor
I think that people are upset because if the Chancellor had not dithered then they would have not been in panic for so long.
That is what makes it unfair.
Entirely justified
The loss of any tax exemption by withdrawing their savings is entirely justified. Why should they receive beneficial tax treatment?
Still Unnecessary
If people react in a wholly irrational manner then they deserve to lose whatever tax emption they may have had on their savings. All the savers must accept responsibility for their actions.
The issue is not dithering by any particular authority. If anything the main issue to come out of it is irresponsible behaviour by certain sectors of the media in creating a panic. We do not live in a third world country and the likelihood of a high street bank in the UK going to the wall was non existent. True Barings and BCCI have disappeared within living memory but they were mainly investment banks and most certainly did not have branches in Carlisle High Street etc.
The panic created by the media was unnecessary, after all they did not kick up the same fuss when Barclays Bank obtained the same finance from the Bank of England. It tends to suggest there was an ulterior motive behind the media action.