Worth transferring £5.2K to Post Office ISA?

Baldur wrote: »

'Subscribe' = pay new money into, transfers are not subscriptions, so you can happily sign it - all transfer forms have this clause, to prevent multiple subscriptions of new money to different ISA providers.

Oh, I thought you can only open one ISA in a tax year? (I mean you cannot pay money into more then 1 ISA in a tax year). So if I paid my monthly SO into my old ISA all year until now (I've opened it 2 year ago), I can now stop and open another one? Or do I have to wait until 5th April 09 before I can open new ISA? Surely transfering is still opening new account? Either I had ISAs completely wrong until now or I am missing something.

Any wrote: »

So if I paid my monthly SO into my old ISA all year until now (I've opened it 2 year ago), I can now stop and open another one? Or do I have to wait until 5th April 09 before I can open new ISA?[/qoute]
You have to wait until 6th April 2009 - you have subscribed to your current ISA during this tax year.

Surely transfering is still opening new account? Either I had ISAs completely wrong until now or I am missing something.

Transferring involves 'opening' an account but does not constitute opening a new ISA, as the funds which will be paid into it are purely transfers from previous and/or current years' ISA accounts held by former providers - see HERE (Chapter 11) for more information on ISA transfers and the rules on subscribing to ISAs after transfer.

Gazza_UK wrote: »

I have my Post Office transfer form here in front of me but I am bit concerned about the terms on the back which you have to agree to.

To start with it says:

'I apply to transfer my existing ISA investments as detailed in Section 3 and subscribe to this cash ISA for the tax year beginning 6 April 20xx and each subsequent year until further notice'.

It also says:

'I have not subscribed and will not subscribe, to another cash ISA in the same tax year that I subscribe to this cash ISA'.

I already have a cash ISA for this tax year with Barclays, so are the terms above worded wrong for a transfer?

Very reluctant to put my name to this + how can I put a year in when I am not subscribing?

Cheers,

Gazza.

Judging by the inland revenue guidance mentioned by Baldur, strictly speaking the transfer form shouldn't have those parts in it unless you do intend to add new money to it. However, I wouldn't worry about it. The Post Office won't force you to add new money later (since they say here that you can transfer without subscribing),

Can I transfer funds from another provider to a Post Office® ISA?
You can transfer funds from an ISA with another provider into your Post Office® ISA. Moving funds from a previous tax year's ISA will not affect the ISA limit you can save in this tax year.
1. If you're applying for a new Post Office® ISA for the current tax year and you wish, at the same time, to transfer in ISAs from a previous year, simply let us know on your application and we will send you out a transfer pack once we have opened your new Post Office® ISA.
2. For any other type of transfer request then phone us on 0800 169 7500 and we'll send you a full transfer pack

and the inland revenue won't be bothered as long as you don't actually subscribe to (ie pay new money into) two ISAs in the same year.

If the form is a paper one, and you're still concerned about signing it as is, I'd be tempted just to cross out the bits about subscriptions and write "transfer only" next to them.

tiptoe

Gazza_UK wrote: »

It would appear they have sent the wrong form :rolleyes:

Upon reading the smallest font possible on the form, this is a transfer and subscribe form, not a transfer only. So I would use this one to transfer from Barclays and subscribe to the PO instead.

Will ring them in the morning for the correct ones.

Hi Gazza

Would be interested to hear if there is a separate transfer only form. I've just seen the paragraph at the top of the Transfer Application Form: "Please complete this form if you wish to transfer all or part of an existing cash ISA held with another provider to a Post Office Cash ISA and you intend to subscribe to this ISA in the current tax year. I'd filled in my transfer form but had left the date where it asks you to subscribe blank . Was just about to post it. It's all a bit confusing.