Dividend cheque received after ISA transfer

[JohnB]

I've just done a complete S&S ISA transfer from M&G to HL. A week later M&G have sent me a cheque for £3.5k mentioning ISAs in the rubrick, stating it was a dividend. Its clearly income that was being processed as the ISA transfer occurred.

Its part of the ISA, so should be able to be added to the HL ISA, but just how hard will it be to persuade people of this. I have used my £20k allowance this year.

I suspect its not worth the fight.

[Lootman]

You cannot subscribe that amount to your new ISA. But you could try returning the cheque to the old provider and instead instruct them to transfer the amount to the new provider, thereby retaining the cash within an ISA. In my view that is what they should have done, so your argument may prevail.

That said, I would probably just fritter it away myself.

[XFool]

You cannot subscribe that amount to your new ISA. But you could try returning the cheque to the old provider and instead instruct them to transfer the amount to the new provider, thereby retaining the cash within an ISA. In my view that is what they should have done, so your argument may prevail.

Yes. It sounds to me that they have simply made a mistake - the cheque, or the amount, should have been sent on to the new ISA administrator. (If from a still valid ISA security)

[scrumpyjack]

I would certainly send back the cheque and say that you did NOT request a withdrawal from the ISA, but instructed them to transfer it, so please transfer this dividend cash.

[Redmires]

I had the same issue when the ISA L&G funds were recently taken over by Fidelity. A month later, a dividend cheque for £40 was received in the post from L&G. It wasn't worth chasing up with them.