Over 50s allowance Q?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
14 replies 868 views
Jay83Jay83 Forumite
119 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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? :o

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Replies

  • fullstopfullstop Forumite
    545 Posts
    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? :o

    Yes, that is correct.
    "When the Government borrows, the citizen has to save".

    Machiavellii
  • Jay83Jay83 Forumite
    119 Posts
    Thanks very much for your help :)

  • 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.
  • FrogletFroglet Forumite
    2.6K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    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.
  • 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.......?
  • BaldurBaldur Forumite
    6.6K Posts
    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.
  • Baldur, you're mixing me up with Jay. I am topping up an existing ISA and her parents are buying a new one.
  • BaldurBaldur Forumite
    6.6K Posts
    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__eddiesteady__eddie Forumite
    1.5K Posts
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    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 ?
  • BaldurBaldur Forumite
    6.6K Posts
    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.
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