ISA money received can I put it all into a different ISA?

misterzee

Hi folks

I received my money from my ICESAVE ISA on Friday - all very efficiently from the compensation scheme. As I used up my 2007/08 allowance and some of my 2008/09 allowance can I open a new ISA with all of my savings which of course is more than the yearly allowance of £3600? If so how does one do it and who is offering the best deals at the mo?

Many thanks

grnglide

You have to wait for the certifcate from FSCS and the pay all of it as an ISA transfer into an ISA account.

The new provider will need the certificate and there will be much confusion ....

You must treat this as a transfer - it is not a new investment - the new institution would reject this if over £3,600 and HMRC would get upset if you invested over £3,600 in total in the 2008 / 9 tax year.

Baldur

You should receive an ISA certificate from the FSCS in the next two weeks to show the amount of the Cash ISA funds returned to you.

This certificate should permit you to deposit those funds into any Cash ISA account which accepts transfers.

misterzee

Thanks guys - i'll wait for the certificate then. :beer:

Pastyman_2

I take it from grnglide's comment that as there is only one certificate, all of the compensation has to be reinvested with only one ISA provider. Am I right that in normal circumstances, transfers could be made to more than one provider? So can I not split my Icesave compensation between two providers? I have used up this year's allowance.

Baldur

Pastyman wrote: »

I take it from grnglide's comment that as there is only one certificate, all of the compensation has to be reinvested with only one ISA provider. Am I right that in normal circumstances, transfers could be made to more than one provider? So can I not split my Icesave compensation between two providers? I have used up this year's allowance.

HMRC's guidance permits partial transfers of previous tax years' Cash ISA funds but the certificate may make this difficult, if not impossible as, in normal transfers, the old ISA provider has to certify the status of the funds to each new ISA manager (i.e. partial/full/previous year(s)/current year's transfer) in order to meet HMRC's requirements & provide an audit trail.

Apoorwoman

Well, I received my ISA monies back from Iceland today - all very efficient. But, I have just made a few phone calls to make enquiries about reinvesting with another provider and it is not looking good. All the high fixed rates are for this year's ISA only (£3,600) but I have over £27k to reinvest - (Life savings stuff).

Has anyone any suggestions please?

bryanb

Pastyman wrote: »

I take it from grnglide's comment that as there is only one certificate, all of the compensation has to be reinvested with only one ISA provider. Am I right that in normal circumstances, transfers could be made to more than one provider? So can I not split my Icesave compensation between two providers? I have used up this year's allowance.

You could invest it all in one provider and then transfer part to another.

On second thoughts, are partial transfers allowed?

fullstop

Apoorwoman wrote: »

Well, I received my ISA monies back from Iceland today - all very efficient. But, I have just made a few phone calls to make enquiries about reinvesting with another provider and it is not looking good. All the high fixed rates are for this year's ISA only (£3,600) but I have over £27k to reinvest - (Life savings stuff).

Has anyone any suggestions please?

Northern Rock are offering a fixed rate ISA paying 5/% which accepts previous years contributions.

Baldur

bryanb wrote: »

On second thoughts, are partial transfers allowed?

Yes, of previous tax year's/years' funds but not current tax year's funds - as I posted above.

evenasus

fullstop wrote: »

Northern Rock are offering a fixed rate ISA paying 5/% which accepts previous years contributions.

They do...I transferred my B&B ISA which had dropped to 3%:eek:

They will not accept 'part' of an existing ISA though, only the whole.