New ISA after cashing one in question

Scubajay

Sorry if it has been asked already - I am on nights and a little tired - couldn't find an answer!!

I recently cashed in my NS&I direct ISA in order to pay off an outstanding loan. Now that I am totally debt free, I am going to be able to save up to £500 a month in a new ISA with a better interest rate than they were offering, but I was wondering:

1)Can I open a new one with someone else, as I used a small part of my tax free allowance for this years ISA?

2) Do I just have give details of what one I had and what part of it Used and the new ISA provider will calculate what I am still allowed to save?

3) Do I have to wait until next year's ISA before I can open a new one?

Cheers for all help given!!:j

jem16

Scubajay wrote: »

Sorry if it has been asked already - I am on nights and a little tired - couldn't find an answer!!

I recently cashed in my NS&I direct ISA in order to pay off an outstanding loan. Now that I am totally debt free, I am going to be able to save up to £500 a month in a new ISA with a better interest rate than they were offering, but I was wondering:

1)Can I open a new one with someone else, as I used a small part of my tax free allowance for this years ISA?

If you have already subscribed to an ISA this year you must continue with that one or transfer it to another provider that accepts transfers.

Paul_Herring

jem16 wrote: »

If you have already subscribed to an ISA this year you must continue with that one or transfer it to another provider that accepts transfers.

How do you transfer £0?

patrick78uk

jem16 wrote: »

If you have already subscribed to an ISA this year you must continue with that one or transfer it to another provider that accepts transfers.

If I have an ISA with NatWest since 2007/8 and deposited £3000. Since April 2008, I've deposited further £1000 which means I still have £2600 ISA allowance left. At this point,
1) can I transfer my ISA to another provider?
2) if Q1 is yes, do I still have £2600 ISA allowance left once my ISA is transferred to the new provider?

Lokolo

1) Yes
2) Yes

tiptoe_mouse

Paul_Herring wrote: »

How do you transfer £0?

Well, I've searched the hmrc guidance on this, and they don't seem to cover it. If the ISA is still open but empty (check with NS&I) then you could:

1) Deposit the minimum allowed into it - unfortunately this is £1000 so you would need to save this up elsewhere; then
2) Transfer the ISA to a new provider - ask the new provider for a form and don't close it yourself.

You could even try this without doing 1) - I wouldn't be surprised if NS&I send a cheque for £0!

Actually, this isn't as daft as it might sound - if you just withdrew the money that was in your ISA at the time and didn't ask for it to be closed, you could have interest of a few pennies (or more?) due to you. So tick the box on the transfer form for transfer of the whole balance. Your new provider will contact NS&I who will then send a closing cheque.

If you've already closed down the ISA entirely, post back and I'll dig a bit further.

HTH

tiptoe