Some ISA advise please

PD1

Last year I took out a £7200 stocks and shares ISA, putting £3600 in the new shares ISA and £3600 in an existing cash ISA.

However, this year I want to do the opposite by finding and filling up a new cash £3600 ISA(which hopefully pays better interest than my existing Abbey ISA), then add £3600 into my existing shares ISA, i.e the reverse of last year.

I hope the way I explained it makes sense!

Can I do this and what is the correct way to do it?

Lokolo

Yeh thats fine

PD1

Thanks Lokolo, I had an assumption that if I took out a new £3600 cash ISA, I'd be limiting myself to that amount and no more.

Lokolo

You are limiting yourself, but only yo the extent that you can only put £3,600 in S&S. Not limiting yourself to £0.

PD1

Ah, you see that's what I don't want to do. I still want use up that £7200 allowance, firstly by taking out a new £3600 cash ISA, and then by adding £3600 to my current shares ISA. Is that plausible?

Lokolo

PD1 wrote: »

Ah, you see that's what I don't want to do. I still want use up that £7200 allowance, firstly by taking out a new £3600 cash ISA, and then by adding £3600 to my current shares ISA. Is that plausible?

Yes thats fine, but what you can't do is put £3,600 in Cash ISA then £7,200 in S&S.

What I was saying in the previous post is that by putting £3,600 in Cash ISA you are limit your S&Ss to £3,600 (whereas without a Cash ISA you would have £7,200 in a S&S ISA), but it still adds up to £7,200.

PD1

I got you...finally!

Cheers Lokolo