ISA Rules on transfers and new years

Cardinal-Red

Hello all!

My wife and I currently have 2 fully subscribed cash ISAs each. The deals on all 4 have either expired or are about to.

We are looking to transfer the existing ISAs into a better deal, but as discussed in other threads transfers in are not always allowed.

We've found a couple of better deals allowing transfers in, but they are all not as good as the A&L Direct ISA which only allows new money.

So our question is:

If we transfer our old ISAs (held in A&L and First Direct) into a better rate deal in April, does this count as using up our 10/11 allowance?

Or could we also open up a 'new money only' ISA and contribute to that during the year?

Am afraid the guidance I've read so far hasn't been very clear!

Lokolo

1) No transfers do not count towards allowance.

2) As above, you still have your 10/11 allowance, so you can open the A&L next Tuesday for new money.

EDIT

http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1

You can also use the above link for the best ISAs available (including sections whereby transfers are allowed)

Cardinal-Red

Thanks - may have worded my question slightly ambiguously but you seem to have answered the question I meant anyway so thanks for that!

I did know that the transfer didn't count towards the 10/11 allowance. What I meant was, does the rule of only 1 cash ISA per year mean I can open 2, transfer in previous years money into one, and then new money into the 2nd, even though both will be effectively opened in year 2010/11?

I THINK you've already answered that question but just wanted to clarify

rb10

The rule of one cash ISA per tax year means that you can only pay new money into one ISA.

ISA transfers do not count towards this limit, so you can open, and just transfer existing ISAs into, as many new accounts as you like, as long as your 2010/11 allowance just goes into a single account.