ISA Allowance - im a bit lost!

monstermonster_2

I opened an ISA account back in 2007-08 Tax year. Since April 08 i have put more money into it, of which i have withdrawn £1696.71.Does this mean i can now only put £1903.29 into an ISA for the remainder of the current tax year or because i had been putting the money into an ISA opened in previous tax year (wrongly) i can use the £3600 allowance in a new ISA for this year? I figure the second scenario is incorrect but i'm confused whether your allowances have to be used in separate ISAs each tax year.

Thanks

flossy_splodge

monstermonster wrote: »

I opened an ISA account back in 2007-08 Tax year. Since April 08 i have put more money into it, of which i have withdrawn £1696.71.Does this mean i can now only put £1903.29 into an ISA for the remainder of the current tax year YES or because i had been putting the money into an ISA opened in previous tax year (wrongly) i can use the £3600 allowance in a new ISA for this year?NO
Thanks

The current situation is that you can only deposit £3600 in a mini cash ISA in any one tax year (April to April).
So no matter how much you may withdraw within that same tax year, the total that can be deposited is still only £3600.
An example:
You put £1400 into the cash ISA in May o8.
In June 08 you deposit a further £600.
(Total now deposited is £2000).
That means you have a further allowance you can deposit in the same tax year of £3600 - £2000 = £1600.
In August you go on your hols and withdraw £750.
balance now sits at £1250.
It makes NO DIFFERENCE that you have made a withdrawal, you still only have left an allowance of £1600 that can be deposited in the same tax year.
If you go ahead and deposit £1450 in January, you now only have £150 of allowance left.
OK?
What you withdraw does NOT affect how much can be deposited in TOTAL.
Hope this helps.:T

ukmike

The current situation is that you can only deposit 33600

if only!!!!!!!!!

Eco_Miser

monstermonster wrote: »

I opened an ISA account back in 2007-08 Tax year. Since April 08 i have put more money into it, of which i have withdrawn £1696.71.Does this mean i can now only put £1903.29 into an ISA for the remainder of the current tax year or because i had been putting the money into an ISA opened in previous tax year (wrongly) i can use the £3600 allowance in a new ISA for this year? I figure the second scenario is incorrect but i'm confused whether your allowances have to be used in separate ISAs each tax year.

Thanks

Once you have opened a cash ISA you can put £3600 in it each year (subject to the manager being willing to accept it, and subject to not opening another cash ISA).
Money taken out is out for good, and cannot be replaced.

nrsql

>> I opened an ISA account back in 2007-08 Tax year. Since April 08 i have put more money into it, of which i have withdrawn £1696.71.Does this mean i can now only put £1903.29 into an ISA for the remainder of the current tax year

As flossy_splodge vbmenu_register("postmenu_19143933", true); says it doesn't matter how much you withdraw.
You can deposit £3600 in each tax year. Doesn't matter that you have withdrwn £1696.71 - you need to subtract the deposits in this tax year from £3600.

You haven't been putting money into a previous years isa - that is closed. You are adding to this years isa allocation - your statement might appear to show that they are in the same pot but in reality they are separate.

You get another £3600 from 5th April.

monstermonster_2

Thanks, so that does mean i only have £1903.29 allowance to put into an ISA this year then. Cool, Thats that sorted out!

thumshie

monstermonster wrote: »

Thanks, so that does mean i only have £1903.29 allowance to put into an ISA this year then. Cool, Thats that sorted out!

NO! (Unless you happen to have withdrawn exactly what you deposited!)

It depends on what you have deposited after Apr 5th 2008, not what you have withdrawn.. You are allowed to deposit before Apr 6th 2009 :

£3600 - [Deposit amount since Apr 08]

cassie9

Hi All,
New poster here. I had £3600 in an Icesave ISA last year, which I got back, no problem. I have just put it in to a Scottish Widows ISA last month at a rate of 3.50%. Lo and behold I received a letter a couple of days ago saying that the rate has gone down to 1.60% on Feb 1st.:mad:
Looking on the main website, there are now a few Isa's paying 3.50% (Marks & Spencer being one of them) Am I allowed to close the account with SW and open one with M&S? bearing in mind it's only been up and running for about a month.

talana

cassie9 wrote: »

Looking on the main website, there are now a few Isa's paying 3.50% (Marks & Spencer being one of them) Am I allowed to close the account with SW and open one with M&S? bearing in mind it's only been up and running for about a month.

Yes you can, providing M&S accept transfers in.
But don't close it and withdraw the money.
Open a new ISA with M&S, give them the details and ask them to transfer the funds across.

CASHMONEY_3

Sorry for hijacking the thread starters post , i just didnt want to make another while on the same topic.

In Feb 08 i opened an ISA with ICESAVE.
In that tax year (April 07 - April 08) I had the max allowed -£3600 sum in the account.

Following April I deposited a further £400, thus making 4k in total.

Since the collapse of ICESAVE, I've had that money back including the interest and have put it in a ICICI savings account - which i am happy with and staying with.

My question is can I open a new ISA account before the end of this tax year?

Hope someone can help me as I am a little unsure of if I can or not.

Lokolo

I don't think you can because this tax years money is in the ICESAVE certificate, so any of ther est of this years contributions have to go into the ICICI account.

Also 07/08 the max contribution was £3000 not £3600....