ISA Transfer?

joe2cool

Hi just wondered if you could help, if I transfer an ISA with its full allowance + interest at the beginning of a new tax year to a new provider can I then top up with the full years allowance? & when topping up an ISA any interest earned previously obviously doesn't count as part of your NEW allowance?

Sorry for basic ?

Thx

Baldur

joe2cool wrote: »

Hi just wondered if you could help, if I transfer an ISA with its full allowance + interest at the beginning of a new tax year to a new provider can I then top up with the full years allowance? & when topping up an ISA any interest earned previously obviously doesn't count as part of your NEW allowance?

Yes, as long as the new provider permits additional subxcriptions - your annual ISA allowance only applies to new money, not to capital & interest already within a Cash ISA.

joe2cool

Thank you for your quick reply

joe2cool

Could I also ask if you have still added cash to your present ISA after the new tax year then decide to transfer, is this amount deducted from your allowance with your new provider?

Thx

missile

No, but you can only add to one ISA per year.

Baldur

joe2cool wrote: »

Could I also ask if you have still added cash to your present ISA after the new tax year then decide to transfer, is this amount deducted from your allowance with your new provider?

If you have subscribed to provider 'A' (your present Cash ISA provider) after 6th April 2010, then transfer the ISA to provider 'B', you can subscribe any remaining balance of your 2010/11 allowance to the new provider, providing that Provider B's ISA permits additional subscriptions.

In the above example if you subscribed £1,600 to provider A before the transfer, you would be able to subscribe up to an additional £3,500 to provider B before 5th April 2011.

joe2cool

Thx again appreciated