Transferring old and new ISA money in same tax year...

ET1976

Sorry if this has been asked but I have searched and can't see exactly what I'm looking for.

I've currently got an ISA with a fixed rate which ends in November 2010, which I haven't put money into yet in this tax year.
I have the £5100 ready to put in to an ISA this tax year.

If I put it into the existing ISA, I would want to open a new ISA in November when the rate goes down to nearly 0. Am I allowed to do this, when I have already put money into an ISA in the same tax year?

If not, I want to open a new ISA now to put this year's allowance into. The only one with a rate worth it (fixed for 1 year) does not accept transfers from previous years. So what would I do in November with the money in the old ISA - can I open a second new ISA in the same tax year and transfer the old money accross?

Grateful for any advice, I'm normally quite good with this kind of thing but it is messing with my head!

dzug1

The £5100 you have saved up is all the new money you can put in an ISA this year. However you do it it will count as this year's ISA allowance. If you put it in 'last year's ISA' it's still a new ISA, legally speaking

Any money you have in past years' ISAs can without limit be transferred to a new provider (who is prepared to accept it). You are not opening a new ISA, though it may be dressed up as that. You are changing the location of the old ones.

Does that help?

ET1976

That helps with what I can do with old ISAs.

But what can I do with this year's allowance - does it have to stay wherever I put it first, or can I transfer it part way through the same tax year?

Mikeyorks

You can add the £5100 into the existing fix rate (if it will accept new money - most fixes don't) ...... and then transfer the lot in Nov.

Or you can open a new ISA with the £5100 ...... then transfer the matured fixed rate to it in Nov (provided it accepts transfers in).

Or you can open a new ISA with the £5100 and then - in Nov - transfer the matured funds from the fix into another new ISA you open at that point.

All permutations possible - provided you only fund with £5100 this year and, if you then transfer those new funds in this tax year you do so with the entirety of the money. You can't transfer part of this year's funds and leave part behind. You can only do that (eg if you're wanting to split a large ISA to keep below the £50k limit in an institution) with previous year(s) funds.

DiggerUK

ET1976,
As Cash ISA's are nowhere near keeping up with inflation, you should go with NSI IL instead.
Should even consider moving any funds already in ISA's over to NSI IL.

Best of fortune.

ET1976

DiggerUK wrote: »

ET1976,
As Cash ISA's are nowhere near keeping up with inflation, you should go with NSI IL instead.
Should even consider moving any funds already in ISA's over to NSI IL.

Best of fortune.

I had just read about that yesterday, am going to look into that too, to add to the confusion!

Thanks all.