Reactivating Cash ISA

SG_Guy

If I made a deposit in a Cash ISA for the 2009/ 2010 tax year but currently do not plan to make a deposit for the 2010/ 2011 tax year, does that mean that as long as I make a deposit before 5 April 2011, I won't need to reactivate the Cash ISA? Thanks in advance.

Sanzai

I don't fully understand your question. Once you open an ISA account, there is usually no need to keep paying money into it each subsequent tax year just to keep it going. The money will remain in the ISA wrapper. In fact, this is what it means when you sign under the part that says, "I subscribe to the ISA for the 2009/10 tax year and every subsequent tax year." This is a standard clause in an ISA contract, but does not bind you into paying your ISA allowance into the same account for subsequent tax years.

Perhaps I have missed the point of your question? If so, please try to clarify it and I will see if I can answer it properly.

funkyhitman

Actually, you do need to pay money into an account each year to keep it active otherwise you are required to reactivate it before you can deposit new money in if it has been left for more than a tax year.

See the note at the end of 3b here http://forums.moneysavingexpert.com/showthread.html?t=2302457

So, SG_Guy, you are correct in assuming that if you deposit money in before the end of the 2010/11 tax year then you will not need to reactivate the account for the 2011/12 tax year.

Sanzai

Ah, I understand now. For some reason I thought SG_Guy was worried that without a further deposit the account would no longer remain as an ISA account.