Over 50s allowance Q?

Jay83

Ok so from what i understand the allowance for over 50s increases from £3600 to £5100 already. My parents haven't used any of their allowance for this year so they can open a isa each for £5100 and then after april they are allowed to top this up by another £5100 (£10,200), is this correct?

fullstop

Jay83 wrote: »

Ok so from what i understand the allowance for over 50s increases from £3600 to £5100 already. My parents haven't used any of their allowance for this year so they can open a isa each for £5100 and then after april they are allowed to top this up by another £5100 (£10,200), is this correct?

Yes, that is correct.

Jay83

Thanks very much for your help

Backspace

Fullstop, do you know anything else about this over 50's deal? I have just been told by Egg that they won't accept an additional £1,500 on my ISA (to top up £3,600 to £5,100) for the current year. They have made an 'executive decision' not to do it!! Surely if the Government has upped the allowance then they have to allow it?? I am gobsmacked.

Froglet

Is it a fixed rate,closed to additional sums,account? i believe that some have said it would be impossible to add to those accounts.But i still don't see why not.

Backspace

It's an Egg Cash ISA (not the current one which is Egg Cash ISA 2) and says variable. I add to it each year but now want to top up to the full amount of £5,100 for over 50's. I can't believe they can refuse to do this. I wonder what would happen if I just transferred the money in online.......?

Baldur

Backspace wrote: »

Fullstop, do you know anything else about this over 50's deal? I have just been told by Egg that they won't accept an additional £1,500 on my ISA (to top up £3,600 to £5,100) for the current year. They have made an 'executive decision' not to do it!! Surely if the Government has upped the allowance then they have to allow it?? I am gobsmacked.

It has been reported elsewhere that Egg are refusing to accept the additional allowance in their ISA account, as they are entitled to - see http://www.hmrc.gov.uk/isa/bulletin14.htm

Implementing the new limits

The Financial Services Authority (FSA) have confirmed that it is a commercial decision for ISA providers on whether they decide to allow eligible customers (those born on or before 5 April 1960) to subscribe up to the higher ISA limits from 6 October 2009.

Equally, it is a decision for your parents about whether or not they find a new ISA provider that accepts Cash ISA transfers and permits the additional allowance, complete that provider's transfer forms and vote with their feet on Egg's stance.

After the transfer has taken place, the additional £1,500 each can be added to the ISAs.

Backspace

Baldur, you're mixing me up with Jay. I am topping up an existing ISA and her parents are buying a new one.

Baldur

Backspace wrote: »

Baldur, you're mixing me up with Jay. I am topping up an existing ISA and her parents are buying a new one.

Yes, apologies for that - however, the first part of my reply is applicable to you (as is the second, as far as 'voting with your feet' is concerned).

steady__eddie

I have had lots of junk mail recently from ISA providers with whom I have ISAs from previous tax years, informing me that has I fall into the Victor Meldrew category, I can deposit an additional 1500 quid with them.
Does anyone know if the additional amount has to be placed into an ISA which has been opened in the current tax year please ?

Baldur

steady__eddie wrote: »

Does anyone know if the additional amount has to be placed into an ISA which has been opened in the current tax year please ?

Yes or, at least, with the same Cash ISA provider.