Barclays Golden ISA

Babyface81

Hi guys

Quick question

My mum has about £2300 in a Nationwide ISA and is thinking of opening the Barclays Golden ISA that Martin recommends. She's noticed you cant transfer funds from an old ISA into this new one so can she simply withdraw the full amount into her current account and then deposit it into the new ISA?

Are there any tax implications in doing this or will it just mean that she will only be able to add £1300 in the 09/10 tax year?

Thanks for any help

BF

agsnu

When did she deposit the £2300 into the Nationwide ISA? If it was this tax year, then she cannot deposit into the Barclays Golden ISA. If it was a previous tax year, then this is fine.

Babyface81

It was in the 08/09 tax year so she wouldnt be able to deposit in Barclays until the 09/10 tax starts.

littlemrtinkle

move existing isa to halifax to give a 3 % fixed

and open new barclays isa after the 5th april

Babyface81

Good idea. I'll let her know.

Thank you

PinkPig

I think some of the previous posts here have been a bit misleading. If you simply withdraw money from an ISA and redeposit then it counts against the allowance in the current tax year.

If you have an ISA containing £2300 from the 2008-9 year or earlier, withdraw it, open an new ISA for the 2009-10 year and pay in the £2300 after 6th April, then you'll only have £1300 of your allowance for 2009-10 left. The new deposit is treated as a new subscription.

If you have an existing ISA then you should open an account that does allow transfers in. Remember there's nothing from stopping you from opening more than 1 cash ISA in a year as long as you only subscribe to one. So, you could open the Barclays Golden ISA for your new deposits and another ISA (that does allow transfers in) to transfer the existing ISA.