Alliance Leicester Issue 4 Isa ??

Baldur

The point is really aimed at your interpretation of the word 'opening' in this context.

As far as HMRC is concerned, opening a Cash ISA is opening AND funding a new account with new money per tax year - not the act of opening an ISA account with a new provider into which the Cash ISA funds held by the old provider will be transferred.

You could, theoretically, 'open' any number of Cash ISA accounts per tax year but, as long as you did not subscribe to any of them you would still not have opened a current tax year's Cash ISA as far as HMRC are concerned.

masonic

Baldur wrote: »

The point is really aimed at your interpretation of the word 'opening' in this context.
<snip everything understood>

You see, the problem with all of this is that someone is going to open a cash ISA, put some money in it and then want to transfer it to a new provider. Almost certainly they will be presented with a form by the new provider for 'opening' a new cash ISA. Subsequently, they are likely to receive correspondence stating that their new account has been 'opened'.

After the transfer has been processed, they might think, 'hang on, I only put £1500 in that ISA, I wonder if I can put any more in?'

Can you put your hand on your heart and say that, without definition of the term 'open', you would expect the average person to interpret "...as long as you only open AND pay new money into ONE per tax year" in the way you intended it?

TrickyDicky

So can someone Answer this for me:

I started a new ISA with A&L back in June. I put £3600 in it. I also transfered money from an older Barclays ISA. As this ISA now only pays 2.5%, I want to transfer to scottish widdows in the same tax year. I obviously cant put new money in, but is transfering to this new account allowed?

tipsychick

TrickyDicky wrote: »

So can someone Answer this for me:

I started a new ISA with A&L back in June. I put £3600 in it. I also transfered money from an older Barclays ISA. As this ISA now only pays 2.5%, I want to transfer to scottish widdows in the same tax year. I obviously cant put new money in, but is transfering to this new account allowed?

Yes, that's absolutely fine. You are transferring existing funds to a new account (£3.6K of which are this year's allowance). You are not funding a new account.