ISA Questions:

xlt_hunter

I used to have one sometime ago when saving to put down a sum for the house. But that was closed afterwards as I never needed it after that.

Now times have moved on and looking to reopen one in the coming weeks/months pending on the new job which hopefully will give me surplus cash to put away to pay mortgage off quicker.

Right.

1. I am planning to open a 5.2% Isa with First Direct, I understand that I can only have 1 per taxable year and only invest upto and not over £3k per taxable year.. Now is it possible to use my parents allowance as well with the 2 ISA's in their names yet I gave them the ££ and all recorded from me? or is this a no no?

2. 1 Isa per tax year upto £3k in my name, can I open another isa in April 06 and have 2 ISAs in my names So have £3k in one now, another £3k in 2-3 months time in the same account and another £3k in the newly opened account somewhere else?

Thanks

Mike

jem16

1. Technically you could if they don't already have an ISA. However depends on how well you get on with them - they could run away with it

2. You can have £3k in now. In April you could add £3k to that one or you could open another one with a different provider. You could not put £3k into the existing one AND open another one with a different provider.

You could put in another £4k to a Stocks & Shares mini ISA as well as your £3k to the cash ISA.

xlt_hunter

Spot on, thanks Jem16

With option1, don't think that ever will happen as I get on very well with them, (in fact they are 10 miles away from me and moving in the coming weeks to 25 metres away from my house on the same road!!!!

Mike

YorkshireBoy

2 points...

1. Are you sure First Direct do a 5.2% ISA? According to their website, the current offering is...

4.89% tax free, equivalent to 5.00% AER (fixed) until 1 September 2006 and then 3.93% tax free, equivalent to 4.00% AER (variable) thereafter

2. Your parents will likely have to sign & certify that any money paid into their ISA's is their own. Are you (and they) aware of the legal implications of making a false declaration, ie a prosecution for tax evasion by HMRC?

xlt_hunter

ah, wasn't aware of this, never mind then