Cash ISA Discussion/Question

Robert_Sterling_3

My daughter took a student loan from high street bank.
She took out the whole amount of the overdraft apart from one pound.
She put £100 in each of quite a few building societies.
The bank wrote to her later to say that there had been no activity on her account for nearly a year.
She said "yes i know that but this is how I get the best mileage out of you generous offer."
A year later she got a similar letter.
I went to see the bank manager and let him know that an ex gratia £10 from him to her would keep her onside".
Same the next year.  Another £10 and I asked him to increase her overdraft.  He did.
One of the Building Societies she had £100 in was the Northern Rock.  She got 500 shares when they demutualised.  Her shares today are worth £3825.
She was also in the Halifax, Abbey National,  Woolwich,  Bradford & Bingley, Birmingham Midshires, Bristol & West, National & Provincial and the Alliance & Leicester.
This Saga has been related ,some of it in real time, in earlier days at https://www.carpetbagger.com now answering to the name https://www.rpoints.co.uk also at https://www.themoneybag.com

dunstonh

Hi!

I am a newbie to this site.

For argument sake, I have the following cash ISA (rates are fictitious):

£3000 with Smile - 2002 at 4%
£3000  with Kent Reliance - 2003 at 4.5%
£3000  with Abbey - 2004 at 5%

Reading through the threads, I gather I can transfer my ISA with Smile and Kent Reliance to Abbey.

Question:

If I do the transfer for the amounts held with Smile and Kent Reliance this year ie. 2004 to Abbey, will there be some documentation to say that £3000 is for 2002 and £3000 is for 2003?

Basically, I do not want to fall foul with the In land Revenue.

Tia.

yes the tax years will be allocated to those plans so no problem.

Best to start a new thread next time rather than use an old one as messages get mixed up

kawan2

yes the tax years will be allocated to those plans so no problem.  

Best to start a new thread next time rather than use an old one as messages get mixed up

Thanks for the reply DD.

Will start a new thread next time.

kevtrader

Hi

I'm thinking of putting some money into a mini ISA (Abbey). If I do that and next year I open another ISA (Halifax) and put £3k in it can I transfer the money in the Abbey ISA into the Halifax one?

The banks are used as examples!

I found this site less than 2 weeks ago and already I've bought the book and following Martin's advice!

Thanks

KevTrader

Robert_Sterling_3

Yes.  Unless you have for example a Mini Cash Isa with a Fixed term e.g. 2 years.

isasmurf

If you have a fixed term you can still transfer it, but you may be hit by hefty penalties (typically from 30 to 180 days interest). It is illegal for banks/BS to lock money in an ISA. IIRC the Inland Revenue cracked down on this a couple of years ago.

lunablanca

lislyloo

Have been reading avidly and I am trying to sort out my finances.... at present I want to put £3000 into a mini ISA for this year as I will hopefully be starting work soon. Currenty I am a non tax payer and you mentioned some R85 form what is this and where do I get one from?

I feel so dumb sometimes and embarrassed not knowing how to take care of my finances.

Luna ???

Reaper

I'm not lisyloo, but the answers are:

If you are getting a cash-ISA there is no need to fill in an R85 because it is tax free anyway.

If you are opening a normal bank/building society account and do not earn enough to pay income tax then you should fill in an R85 Tax Exemption form so that the interest is paid to you without having had tax deducted first.

Whichever bank/building society you open your account with will provide you with a form on request. Just fill it in and give it back to them.

PS No need to feel embarrassed about asking questions. That's how you learn.

colinr_3

Hello! I've just joined and was wondering if anyone could help lay my mind to rest on an ISA issue.

I currently have two cash ISAs opened on consequtive tax years (one with the Halifax and one with HSBC) and am pursuing a policy of 'jumping' from one to the other each alternate tax year. I only pay up to the £3000 limit in one ISA each year.

I was thinking about doing this as a way of spreading my money out between two different financial institutions, as I had advice that you get a better response from a Bank or Building Society if you already have an existing account with them. Also I think it would be good to have the 'fallow' ISA accumulating interest while I was paying into the other one. Is this allowed?

I spoke to the Independent Financial Adviser that my company uses and he seemed to find no problem with this provided I don't pay more than £3000 per year in (which I'd have problems doing anyway!), but I'm a bit worried that I didn't explain my position well enough, and would like any information about whether this is illegal or might cause any problems?

Thanks for any help!

isasmurf

Hello! I've just joined and was wondering if anyone could help lay my mind to rest on an ISA issue.

Welcome aboard! I'll do my best to ease your worries.

Also I think it would be good to have the 'fallow' ISA accumulating interest while I was paying into the other one. Is this allowed?

Yes it is allowed. You could, if you wanted to, put your annual allowance of £3000 into a different bank/building society every year while the others you hold 'earn' interest. Or put in another way, there is no limit to the number of ISAs you can hold, as long as you only put money into one in any given tax year.

There is one drawback to your method though. If you have an ISA, do not put anything into it the next year, and the year after want to put something into it, you will need to apply for the account again.