HMRC ISA Tax Attack

HMRC ISA Tax Attack

Tens of thousand of ISA holders could be losing out on massive tax breaks due to a little-known regulatory device which allows the HM Revenue and Customs (HMRC) to withdraw interest and tax-free allowances.  

HM Revenue and Customs has been placing cash ISA’s in suspense accounts if the holders have not made a contribution during a tax year and have failed to return a declaration form sent to them by the provider.  Failure to return the forms means the Revenue has the power to freeze the account until the holder re-applies, confirming details of names and addresses.

Our view

Given information sharing between Government agencies such as Local council tax registers, the DWP, the Land Registry, DVLA and the Passport Office, we see this as little more than a tax saving mission.  No excuses HMRC.

Likewise, the public should also carry blame by not making the required declaration.

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