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    • stangam
    • By stangam 26th Apr 16, 2:09 PM
    • 2 Posts
    • 0 Thanks
    stangam
    Thanks Consumerist
    • MoneyRonSaver
    • By MoneyRonSaver 16th Jul 16, 2:37 PM
    • 1 Posts
    • 0 Thanks
    MoneyRonSaver
    Sorry I need a bit of clarification. I have a cash isa with 5000 in. I want to basically take this all out and put some in a help to buy and another in a savings account. How do I do this correctly? i.e Not break the golden rule:
    "Never, ever, ever, ever withdraw the money yourself! You'll immediately lose all the tax benefits."

    Any help would be most appreciated?

    Thanks,

    Robin
    • badger09
    • By badger09 16th Jul 16, 3:20 PM
    • 5,399 Posts
    • 4,639 Thanks
    badger09
    Sorry I need a bit of clarification. I have a cash isa with 5000 in. I want to basically take this all out and put some in a help to buy and another in a savings account. How do I do this correctly? i.e Not break the golden rule:
    "Never, ever, ever, ever withdraw the money yourself! You'll immediately lose all the tax benefits."

    Any help would be most appreciated?

    Thanks,

    Robin
    Originally posted by MoneyRonSaver
    Forget that 'golden rule'. I've copied my response to a similar question on another thread:

    "The advice used to be to avoid withdrawing money from a cash ISA, unless you needed it for a specific purpose - eg house purchase, because of the loss of the tax free status. But that was in the days when the annual amount you could pay into an ISA was low, and cash ISAs were paying decent rates of interest,

    However, many things have changed eg:

    1)amount you can pay into an ISA each year is now over £15k and will be £20k next year
    2)many cash ISAs are now flexible, so if you withdraw you can pay back in (T&Cs etc etc)
    3) basic rate taxpayers can now earn up to £1k interest a year, tax free
    4)many current accounts pay interest up to 5%, and regular savers pay up to 6%

    So.... it really makes no sense at all to save short term for a house deposit in an ISA, or to leave your savings in one if you intend to spend most of them in the forseeable future"

    Have you paid any money into your cash ISA since 6th April 2016?

    Where are you going to open your HTB ISA?
    • merlin777
    • By merlin777 16th Jul 16, 9:03 PM
    • 56 Posts
    • 4 Thanks
    merlin777
    Thanks for this Badger09.

    Do you know if the new rule allowing us to withdraw from an ISA and replace it again applies to existing ISAs or do they have to be new ISAs and specially formulated for it?

    I ask because I have a stocks and shares ISA and occasionally I want to withdraw and replace but Interactive Investor say I can't do this with my account. In fact, last item I spoke to them they hadn't applied this change to anything yet.
    • masonic
    • By masonic 16th Jul 16, 9:08 PM
    • 9,125 Posts
    • 6,274 Thanks
    masonic
    Do you know if the new rule allowing us to withdraw from an ISA and replace it again applies to existing ISAs or do they have to be new ISAs and specially formulated for it?
    Originally posted by merlin777
    ISA providers can make any, all or none of their ISAs flexible, including those opened before the flexibilities were introduced.

    I ask because I have a stocks and shares ISA and occasionally I want to withdraw and replace but Interactive Investor say I can't do this with my account. In fact, last item I spoke to them they hadn't applied this change to anything yet.
    Most S&S ISA providers do not offer the flexibilities and have no plans to do so.
    • DaisyUK
    • By DaisyUK 15th Sep 16, 11:27 AM
    • 3 Posts
    • 0 Thanks
    DaisyUK
    HI, I hope you can help us.
    We have a client with a disabled daughter aged 20. She has an ISA with some savings for her 21st birthday.
    Can you tell me the savings limit for an ISA when you are on ESA?
    Thanks in advance for your help.
    • Consumerist
    • By Consumerist 15th Sep 16, 11:39 AM
    • 4,666 Posts
    • 2,319 Thanks
    Consumerist
    HI, I hope you can help us.
    We have a client with a disabled daughter aged 20. She has an ISA with some savings for her 21st birthday.
    Can you tell me the savings limit for an ISA when you are on ESA?.
    Originally posted by DaisyUK
    The ISA limit is the same for all adults. Benefits have no bearing on this.

    The limit this year 2016/17 is £15,240.

    Hope this helps.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • DaisyUK
    • By DaisyUK 15th Sep 16, 12:03 PM
    • 3 Posts
    • 0 Thanks
    DaisyUK
    Thanks - greatly appreciated
    • bowlhead99
    • By bowlhead99 15th Sep 16, 12:16 PM
    • 6,888 Posts
    • 12,399 Thanks
    bowlhead99
    HI, I hope you can help us.
    We have a client with a disabled daughter aged 20. She has an ISA with some savings for her 21st birthday.
    Can you tell me the savings limit for an ISA when you are on ESA?
    Originally posted by DaisyUK
    The ISA limit is the same for all adults. Benefits have no bearing on this.

    The limit this year 2016/17 is £15,240.
    Originally posted by Consumerist
    Consumerist is right of course, but in case the two of you are at cross-purposes:

    You can put whatever you like in an ISA up to the limit of £15240 of new money in a tax year. So if the savings for her 21st birthday have been building for several years she could have tens of thousands in there and it would not be illegal as long as she didn't go over the maximum limit for contributions of new money into the ISA in any one tax year.

    If you are on income-based (rather than contribution-based) ESA, the amount of benefit you get depends on your income. If you have lots of savings, you are presumed to be getting an income from them, and if you had over £16k of savings you wouldn't be eligible for income-based ESA at all. But at a low level of savings (under £6k) they don't bother looking at your savings or "capital" to make an assessment.

    In between that, i.e. once your savings go over £6k, a variety of means-tested benefits may reduce (it used to be by £1 a week for each £250 of savings over the minimum.

    So, if the question is:
    - how much can she put into her ISA?

    It's currently £15k a year and could be tens of thousands by now if people have been saving into her ISA for her for several years. But if she does have that much, her means-tested ESA would be severely reduced or wiped out.

    But if the question was meant to be:
    - she has some money in her ISA and receives ESA. How much can the ISA be before they stop paying her the maximum level of income-based ESA that they would otherwise have paid her?

    I think it's £6k where it starts to reduce. ISAs are not treated differently to other 'normal' savings accounts in that regard.
    • DaisyUK
    • By DaisyUK 15th Sep 16, 1:04 PM
    • 3 Posts
    • 0 Thanks
    DaisyUK
    Consumerist is right of course, but in case the two of you are at cross-purposes:

    You can put whatever you like in an ISA up to the limit of £15240 of new money in a tax year. So if the savings for her 21st birthday have been building for several years she could have tens of thousands in there and it would not be illegal as long as she didn't go over the maximum limit for contributions of new money into the ISA in any one tax year.

    If you are on income-based (rather than contribution-based) ESA, the amount of benefit you get depends on your income. If you have lots of savings, you are presumed to be getting an income from them, and if you had over £16k of savings you wouldn't be eligible for income-based ESA at all. But at a low level of savings (under £6k) they don't bother looking at your savings or "capital" to make an assessment.

    In between that, i.e. once your savings go over £6k, a variety of means-tested benefits may reduce (it used to be by £1 a week for each £250 of savings over the minimum.

    So, if the question is:
    - how much can she put into her ISA?

    It's currently £15k a year and could be tens of thousands by now if people have been saving into her ISA for her for several years. But if she does have that much, her means-tested ESA would be severely reduced or wiped out.

    But if the question was meant to be:
    - she has some money in her ISA and receives ESA. How much can the ISA be before they stop paying her the maximum level of income-based ESA that they would otherwise have paid her?

    I think it's £6k where it starts to reduce. ISAs are not treated differently to other 'normal' savings accounts in that regard.
    Originally posted by bowlhead99
    Thanks for all that - very helpful
    • colsten
    • By colsten 15th Sep 16, 5:23 PM
    • 8,788 Posts
    • 7,466 Thanks
    colsten
    From http://www.disabilityrightsuk.org/employment-and-support-allowance-overview

    You cannot get income-related ESA if your (and your partnerís) capital or savings are over £16,000.

    Best to ask the DWP what precisely applies to your client's daughter!
    • Top Owl
    • By Top Owl 29th Jul 17, 10:54 AM
    • 1 Posts
    • 0 Thanks
    Top Owl
    For my 17/18 allowance I have taken out a 2 year fixed rate ISA which matures in July 2019. Come April 2018 can I still take out a new ISA for 18/19?
    • eskbanker
    • By eskbanker 29th Jul 17, 11:34 AM
    • 5,800 Posts
    • 5,685 Thanks
    eskbanker
    For my 17/18 allowance I have taken out a 2 year fixed rate ISA which matures in July 2019. Come April 2018 can I still take out a new ISA for 18/19?
    Originally posted by Top Owl
    Yes, the £20K annual allowance resets at the start of each new tax year, as does the rule about paying in to one ISA of each type per tax year.
    • webwiz
    • By webwiz 9th Sep 17, 7:23 AM
    • 204 Posts
    • 76 Thanks
    webwiz
    Regular payments spread over several years
    In 2014/15 I opened a cash ISA and have been paying a regular amount into it each month ever since. Does this mean that this ISA became my cash ISA for each of the years since, meaning that I cannot open another cash ISA this year?
    • eskbanker
    • By eskbanker 9th Sep 17, 10:21 AM
    • 5,800 Posts
    • 5,685 Thanks
    eskbanker
    In 2014/15 I opened a cash ISA and have been paying a regular amount into it each month ever since. Does this mean that this ISA became my cash ISA for each of the years since, meaning that I cannot open another cash ISA this year?
    Originally posted by webwiz
    In a word, yes - you can only pay new money into one ISA of each type per tax year, i.e. having paid into your cash ISA this tax year you can't pay into another one.

    Three options:
    1. You could pay into a S&S ISA if you have enough readily-available cash
    2. If you need to stay in cash, consider non-ISA accounts such as regular savers and current accounts that pay better interest
    3. If you feel cash ISAs are worth doing, you could transfer to a better product, as if you've had one for years then chances are it won't be competitive.
    • Consumerist
    • By Consumerist 9th Sep 17, 10:57 AM
    • 4,666 Posts
    • 2,319 Thanks
    Consumerist
    If you're not happy with the return you're getting then, of course, you can transfer the ISA to a new manager and continue paying in until you reach the ISA limit for this year (£20,000).
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • ejv
    • By ejv 11th Sep 17, 6:26 PM
    • 289 Posts
    • 38 Thanks
    ejv
    Can I open an ISA with one provider and transfer my old ISA to another provider in the same financial year?
    • george4064
    • By george4064 11th Sep 17, 6:38 PM
    • 857 Posts
    • 910 Thanks
    george4064
    Can I open an ISA with one provider and transfer my old ISA to another provider in the same financial year?
    Originally posted by ejv
    Yes. The rule is you are only allowed to subscribe new money to one ISA per tax year, therefore any transfers between ISAs are allowed (make sure you transfer properly, i.e. don't withdraw the cash and transfer it to the new ISA)
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £11,044.98/£12,000 (92%)
    • ejv
    • By ejv 11th Sep 17, 6:57 PM
    • 289 Posts
    • 38 Thanks
    ejv
    Yes. The rule is you are only allowed to subscribe new money to one ISA per tax year, therefore any transfers between ISAs are allowed (make sure you transfer properly, i.e. don't withdraw the cash and transfer it to the new ISA)
    Originally posted by george4064
    Thank you.
    Just to confirm...I wish to transfer the old ISA to a provider whom I'm not a current customer ie this would also be a "new" provider for me.
    • george4064
    • By george4064 11th Sep 17, 9:24 PM
    • 857 Posts
    • 910 Thanks
    george4064
    Thank you.
    Just to confirm...I wish to transfer the old ISA to a provider whom I'm not a current customer ie this would also be a "new" provider for me.
    Originally posted by ejv
    Thats fine, just make sure you action it as a transfer. This involves contacting your new provider and inform them you wish to transfer your existing ISA to them, your new provider will then ask you to fill in some forms etc.. and from there your new provider will comtact your current provider to start the transfer.
    Last edited by george4064; 11-09-2017 at 9:28 PM.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £11,044.98/£12,000 (92%)
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