HMRC rules that funds withdrawn in error by managers can be reinstated
PIMA has recently received notification from HMRC (HM Revenue and Customs) that they are changing their policy regarding monies incorrectly removed from PEPs or ISAs as a result of an error by the manager. This follows a focused lobbying effort by PIMA and its members.
Previously, withdrawals could only be reinstated in specifically defined circumstances. HMRC has announced that, as of 18 July, managers who err in this way may reinstate the PEP or ISA accounts from which the withdrawal was made. However, the manager must contact the HMRC Audit Unit in order to gain clearance before reinstating the account.
This is part of PIMA’s ongoing commitment to push for changes that make sense for their members and the 16 million people who have invested £160 bn in ISAs. In this case, PIMA argued that the previous practice of disallowing the reinstatement of money that had been withdrawn in such cases was needlessly penalising investors for mistakes totally beyond their control.
PIMA Director General Tony Vine-Lott said,
[i]‘We are pleased that HMRC has acted to ensure that investors are not penalised when managers err. We value the commitment of HMRC to continue re-evaluating and modifying PEP and ISA savings policy so that the consumer wins.’[/i]
Questions or enquiries can be directed to:
Tony Vine-Lott
01372 374728 or 07790 006108
Jacob Coy
0207 665 9535