Icesave Isa

sisk23

I started new Isa for this tax year with IceSave Isa and put in just £1000 ,my question is can I start another Isa with another bank and put in the rest of this years allowance £2600? or do I have to put it where my £1000 is going after I get it back from Icesave?

Baldur

sisk23 wrote: »

I started new Isa for this tax year with IceSave Isa and put in just £1000 ,my question is can I start another Isa with another bank and put in the rest of this years allowance £2600? or do I have to put it where my £1000 is going after I get it back from Icesave?

You already have a Cash ISA for this tax year (Icesave), so the funds from that have to be transferred (albeit via the certificate from the FSCS), then you can top up the ISA before 5th April.

Doing it the other way around could lead to the newly-opened ISA being voided.

roxalana

I don't think you can pay extra money into the new ISA (whether it is the one you transfer your icesave money into or not) as this is subscribing to more than one ISA in a year. This is even though you have some allowance left.

The only way I can see that we might be able to do this is if the certificates say we can bend the rules (as it isn't as if we can continue subscribing to the icesave ISA is it!).

Baldur

roxalana wrote: »

I don't think you can pay extra money into the new ISA (whether it is the one you transfer your icesave money into or not) as this is subscribing to more than one ISA in a year. This is even though you have some allowance left.

It is not subscribing to more than one Cash ISA in a tax year - see section 11 of HMRC Guidance Notes for ISA Managers.

The only way I can see that we might be able to do this is if the certificates say we can bend the rules (as it isn't as if we can continue subscribing to the icesave ISA is it!).

See above, The Icesave ISA funds will effectively be a Cash ISA transfer so, yes, you can continue subscribing to it, albeit with a different ISA manager.

sisk23

Thank you so much for your help ,I checked the HMRC guidance notes on Isa transfers and I can top this years Isa after the transfer, I just have to wait for the money from Icesave .Hope there are still decent rates left when the money arrives.