ISA Question

[TW]Fox

[TW]Fox

[TW]Fox

Man of Honour
Joined
17 Oct 2002
Posts
160,215
Hi guys,

If you have an ISA which you took out in the previous tax year, yet in June you opened a new ISA account with another bank and transferred money from the previous ISA into this, has that used up this years ISA allowance?

Or do I still have my 'new' allowance to put new funds into?

Thanks!
 
I have not subscribed and will not subscribe more than the overall subscription limit in total to a Cash ISA and a Stocks and Shares ISA in the same tax year
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So I'm not going against this?
 
If you transfer it from ISA to ISA, it doesn't affect your allowance.

If you transfer from ISA to current account, then into a new ISA then it does affect your allowance.
 
A transfer and a subscription are different things. You can transfer any amount into an ISA (that allows transfers) and still use your years allowance.

What you're quoting is just saying 'Don't go to several different banks and open up several ISA's and fill them all in 1 year'.
 
transferring an existing isa from a previous year into a brand new isa is absolutely fine (depending on the new isa as sometimes the banks don't let you because they only want new cash blah blah blah).

What you can't do is put new money into an isa once you have used up the current year's allowance (and from april I think that is over £5,000 for those of us with youth on our side)

e.g. 09/10 tax year - I deposit £3,600 into an isa at 2% variable rate

10/11 tax year I open a new isa with £5,100 at 4.1% fixed for 3 years

I can transfer the 09/10 cash into the fixed rate but as I have used up this year's allowance I can't put any extra "new" money in
 
Saetia said:
A transfer and a subscription are different things. You can transfer any amount into an ISA (that allows transfers) and still use your years allowance.

What you're quoting is just saying 'Don't go to several different banks and open up several ISA's and fill them all in 1 year'.
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No I dont agree, the subscription limit they're referring to is the maximum amount you're allowed to put into an ISA or combination of cash/stock ISAs, presumeably hence the question.
 
Just make sure you make it known to the new ISA provider that you want to transfer in previous years' subscriptions. There's usually a section on the application form to cover it.
 
Burned_Alive said:
Interesting, didnt realise the Cash ISA limit was going up to £5,100 for everyone this year.
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Doesn't really make a big difference now though, with the interest rates being so low !

I actually withdrew some funds from my ISA and invested into some different things ... don't see too much point till the interest rates change (for cash ISA at least)
 
Ironic Namesake said:
I actually withdrew some funds from my ISA and invested into some different things ... don't see too much point till the interest rates change (for cash ISA at least)
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I might be wrong but its so when (if) the interest rates are favourable again you will still have all your isa cash stashed away and earning a hefty interest rate tax free.

I'm pretty sure there is always something better to do with your cash than isas if you know what you're doing
 
Chicken #16 said:
I might be wrong but its so when (if) the interest rates are favourable again you will still have all your isa cash stashed away and earning a hefty interest rate tax free.

I'm pretty sure there is always something better to do with your cash than isas if you know what you're doing
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Yep, but I don't know about a hefty interest rate till the BOE raise the interest by a bit

I managed to recoup some losses and make good returns on FTSE tracker in the last 18 months.

I liked cash ISAs when the rates were good (icesave? :p) but all seemed a bit pointless when the interest rates dropped
 
No problem as long as you transferred it properly.

As for the point made above, that's the weird thing about ISAs, you also have to weigh up the potential for future earnings with them. e.g. because you are capped in terms of how much you can put into them each year, it means that if you don't build up a hefty sum to start with, potentially you are missing out on hefty returns in the future (especially if you are, or will in the future, be a high rate tax payer).

Of course, missing out on that potential is a bit of a moot point if you are able to get good returns on your money elsewhere right now.
 
Ironic Namesake said:
Doesn't really make a big difference now though, with the interest rates being so low !

I actually withdrew some funds from my ISA and invested into some different things ... don't see too much point till the interest rates change (for cash ISA at least)
Click to expand...

Know what you mean, 3.5% seems to be the absolute best for an instant access ISA at the moment. Hardly above inflation :(.

In fact thats only if you are opening a new ISA, 2.75% is the best I can find for transfering an old ISA.
 
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