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When to open an ISA? Now or after 6th April

melorablack
Posts: 1,114 Forumite
I am looking to open a Barclays Golden Isa but when I apply online it asks if I want to open it for this tax year (April 2008- April 2009) or next tax year. I have never had an ISA before and which is why this one is goob because I can start with a small deposit.
I just want to know do I open it now or do I wait until after 6th April?
I just want to know do I open it now or do I wait until after 6th April?

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Hi
I would open the ISA for this tax year 2008-2009 and put all the money you can into it
Then for the next tax year 2009-2010 you will be able to put upto the full amount 3600 (if you can) :rolleyes:Mortgage Aug 12 £165K, Aug 19 £0
ISA challenge start 2019 £3000/£1500 (50%)0 -
If I open one for this tax year I can keep using the same one after 6th April? Or do I have to apply for a new one?0
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Technically it will be a new one but with most companies you don't notice - just carry on paying into it.0
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And one last question (I hope).... I have noticed that it says that anything you take out cannot be put back in in the same year.
If say I put £500 in this year, but needed to take it out after 6th April, would that reduce next years allowance by £500?
(I swear they should teach you this stuff in school!)0 -
Yes you can keeping paying into the one that you open this tax year, its technically the same account
You are correct that if you pay in £500 and then take it out, then the amount that you have left to pay in for that tax year stays at £3100
My OH uses his ISA as a bank account as it pays better interest, so he will save up then take the money out and spend it on the house
I use my ISA as my emergency fund and luckily haven't had to take any money out since I opened it, so keep topping it up each year
And I agree they should defo teach this as school :rolleyes:
I have just re-read your post I missed the paying it in this tax year and taken it out next year, I think in this instance it woudn't alter the £3600 but I'm not 100% sure, we will have to wait for someone cleverMortgage Aug 12 £165K, Aug 19 £0
ISA challenge start 2019 £3000/£1500 (50%)0 -
melorablack wrote: »And one last question (I hope).... I have noticed that it says that anything you take out cannot be put back in in the same year.
If say I put £500 in this year, but needed to take it out after 6th April, would that reduce next years allowance by £500?
(I swear they should teach you this stuff in school!)
Nope. It's all about what you put in per tax year! So if you put in the full amount £3600 this year and take out any amount next year you can still put in up to £3600 next year. What you have to remember is you cannot "put in" any more than the max. E.g. if you put in £3600 in a tax year and then take out £1000 you cannot replace that £1000 as you have already put in the max for the year.0 -
melorablack wrote: »
... I have noticed that it says that anything you take out cannot be put back in in the same year.
The ISA allowance is £3,600. If you've paid in the full amount, and then choose to withdraw £500 (say), you cannot pay this in at a later date (in the same ISA year).
If, however, you have used only £1,000 of the allowance, you should be able to pay in another £2,600 - wherever the funds are sourced from.
If say I put £500 in this year, but needed to take it out after 6th April, would that reduce next years allowance by £500?
The allowance for 2009 / 2010 is entirely unaffected by withdrawals from 2008 / 2009 funds.
(I swear they should teach you this stuff in school!)For the avoidance of doubt: I work for an IFA.0 -
April 2008 to April 2009 you put in £500 you have £3100 left to invest for that tax year.
New Tax Year April 2009 to April 2010 You can invest £3600
If you remove the £500 it will not affect the £3600 allowance for April 2009 to April 2010 as it has not been invested in this tax year.£2 Coins Savings Club 2012 is £4.............................NCFC member No: 00005.........
......................................................................TCNC member No: 00008
NPFM 210 -
Thank you so much for all your help everyone!
Stupid 14 years of education teaching me nothing important!0 -
melorablack wrote: »(I swear they should teach you this stuff in school!)
or just read the numerous information publications about ISA's.
Can you honestly believe schoolkids would tune into stuff about ISA's pensions etcMortgage free
Vocational freedom has arrived0
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