Isa subscription mistake

[El_Hadji84]

Hi,

I recently joined an online stockbroker in order to place £10,200 in an ETF Fund as an ISA, (like shares). I put this sum of cash into my Stock and Shares account but wasn't initially sure what to invest in so I didn't buy any stocks or shares and put the money back into my savings account so it didn't get worn down by inflation. A month later I put the same £10,200 back into the online stockbroker account and they said I had already subscribed to my annual ISA allowance.

I did not think that withdrawing the £10,200 cash would invalidate my subscription to an ISA for this year, after all I had not purchased any stocks or shares and it is a "Stocks and Shares ISA", not a "Stocks and Shares and Cash ISA".

If I am mistaken, clearly it was a misunderstanding from a technical error and I have made no economic gain from these actions (subscribing to two ISAs, in effect opening one and closing it straight away unknowingly) the same amount of cash has made two subscriptions in this case which seems odd that is should cancel my annual allowance. Clearly this was done in error and common sense would say I should still be allowed to have an ISA in this tax year?

After all aren't ISAs supposed to encourage savings? Will HMRC have a compassionate side, or make an enemy?

[Incredulum]

HMRC will not have a compassionate side.

You withdrew cash from an ISA. Sorry.