Do I lose my allowance? Closing an unused ISA and opening another...

shellsh0ck

Hi,

Despite endless reading, I still can't seem to get clarification on this matter. Would anyone be able to advise me please?

I have had an ISA with Halifax since Oct 2004, which, although used initially, I haven't touched it since Sept 2005. The balance is currently £5.00 (without interest).

I am now in a position to start saving again, however, I have found a much better ISA than my current Halifax one.

Is the £5 classed as part of this year's allowance? (From what I can tell, I don't think it is.)

Am I able to just cancel my Halifax ISA and start another with the full allowance?

Many thanks

Lokolo

No its classed as allowance from Year 2005. Not this year. You may as well close it, keep the £5 and put it in new ISA.

jauntyangle

The £5 doesn't count as part this year's allowance if you saved it in 2004/05.

You should be able to open a new ISA with a different provider.

If it was a lot more than a fiver, it may have been worth transferring it to another ISA, but you may as well just withdraw it.

shellsh0ck

My thoughts exactly but thanks to both of you for the confirmation.

RayWolfe

Each year you have a Cash ISA allowance. This year it is £3,600. Each year is cumulative.
It appears you put £5 into a Cash ISA in the 2004/5 tax year.
You can keep this, transfer it, cash it in ... whatever you want, and it won't affect this tax years allowance ... so you still are allowed to put in up to £3,600 regardless of any previous years ISA.