How To Repair A Breached ISA Subscription Limit?

Excessive Subscription to Cash ISA + Stocks/Shares ISA in Same Tax Year Made in Error-Rectifiable?

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Early in the 2023/24 tax year client subscribed for a £10,000 cash ISA followed a few months later by a £20,000 stocks & shares ISA without realising what he had done. The stocks & shares ISA was created by selling some quoted shares and then buying back the same shares in an ISA, creating a small CGT loss in the process. The CGT loss will come in handy.

Client is more than happy to advise the bank of the £10,000 cash ISA error in an attempt to cancel this ISA investment. This would leave the stocks & shares ISA transaction undisturbed.

However, is the client able to do this. I.e. cancel the cash ISA investment in an attempt to save the stocks & shares ISA, or should he just sit tight and await the HMRC letter which is sure to come. Also, what is the HMRC letter likely to say. Client has never oversubscribed before.

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Replying to David Ex:
paddle steamer
By DJKL
27th Feb 2024 10:11

Excellent link. Lots of bedtime reading.

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