Mrs Stupid here - re Toisa/Isa investment rules

feijoa

Help, please – totally confused re Isa regulations!!!
In August 2003, I transferred the capital from my matured YBS Tessa to Newcastle Building Society’s Guaranteed FTSE Bond, as a Toisa. This was a fixed-term bond, maturing in either 3 years or 5 years, depending on stock market performance. At that time, I did not have any Isa accounts - I was not and still am not a taxpayer - but, as there is a possibility that at some time in the future I might become a taxpayer, I thought it a good idea to keep these savings in a tax-sheltered product.
Last tax year, as a result of a small inheritance, I opened a mini cash Isa with YBS and put in the maximum amount - £3,000. This tax year, I did the same – therefore I now have capital of £6,000 in the YBS mini cash Isa – plus any interest earned.
I have just received notification from Newcastle BS that the Guaranteed FTSE Bond has matured (17 August) and offering various suggestions as to the reinvestment of funds from the matured account.
As I have already invested the maximum amount of £3,000 into my YBS mini cash Isa this tax year, can I transfer the funds from this matured Toisa to, for instance, Newcastle Building Society’s Guaranteed Return Isa (a 5-year account linked to stock market growth) or would this contravene the rules re Isa subscriptions?
I was rather hoping that I would either be able to continue running this matured Tessa/Toisa in the new Newcastle BS FTSE Bond (or some other Newc BS savings product) alongside the YBS mini cash Isa I now have – or, at least, be able to transfer the matured capital from the Newc BS Toisa to my existing YBS mini cash Isa, even though it has already had the £3,000 maximum investement for this tax year.
However, after hours spent pouring over the regulations, I am none the wiser! Do Toisas still exist – or am I able to have only one bite at this particular cherry?

Mr_Mumble

would this contravene the rules re Isa subscriptions?

No it would not, you are transferring a previous years subscription not adding to this years subscription.

Do Toisas still exist – or am I able to have only one bite at this particular cherry?

Under HMRC's rules the TOISA is now considered to be a cash-ISA. See here:
http://forums.moneysavingexpert.com/showpost.html?p=1405195&postcount=18

You should be able to transfer the TOISA to most cash-ISA providers who allow transfers-in. A few banks and Building societies don't accept TOISA transfers but this is their choice and has nothing to do with the tax rules.

dunstonh

Once in the ISA, that is fine. Its only if you take it out that you can't put it back again [in your case].

I would avoid GEBs though as they are an awful investment product.

feijoa

Mr Mumble and dunstonh, thank you both - that's removed a great deal of confusion for me! I take your point re avoiding GEBs - any alternative suggestions re a better home for this TOISA dosh would be most welcome

dunstonh

With TOISAs you are a bit limited in choice between cash and GEBs. If your overall portfolio doesnt allow equity investing elsewhere and the TOISA to be your cash element then you may have to bite the bullet and pick a GEB. That said, if you havent used your equity ISA allowance, you could remove some from the TOISA and place it back in under the equity ISA.