Cash ISA Question

glider3560

I really should know the answer to this and I'm ashamed of myself for having to ask!

I have an ISA with First Direct. I've got about £1000 left to subscribe this tax year (i.e. I've subscribed around £4100).

If I transfer the whole ISA (current and previous year subscriptions) to Halifax in the next few days, can I still pay the other £1000 into Halifax once transferred?

I'm 99% sure I can but wanted to check.

Also, how likely is it that Halifax will c**k up the transfer so that I can't subscribe the other £1000?

glider3560

Just found the answer to my question in the ISA guidance notes from HMRC. The losing provider does not report current tax year subscriptions, but the receiving provider does. So I'm fine to add money up to the limit.

Lokolo

Yes you are! I have never done this though so not sure how well it's going to go

lisyloo

I did FD to Halifax and they took 6 weeks.
I wasn't too bothered as under the ISA promise I got 5 weeks of double interest (there's a 1 week gap whilst the cheque is in the post).
Don't hold your breath and don't bother chasing them up too much it's a waste of time.
The call center people at Halifax know nothing and don't work in the department that does the work.
First Direct denied receiveing any paperwork which is weird as they transferred our money out.

So don't be too much of a control freak about it.
Just wait 6 weeks.

glider3560

lisyloo wrote: »

I did FD to Halifax and they took 6 weeks.
I wasn't too bothered as under the ISA promise I got 5 weeks of double interest (there's a 1 week gap whilst the cheque is in the post).

That's what I was hoping! I'm handing the form into Halifax tomorrow and will make sure I get them to date stamp the form. It won't be with First Direct until at least after the weekend which will add an extra few days to the process.

Do they pay the extra 0.2% interest (for having a funded current account) during the transfer period?

soulsaver

Why don't you pay the £1k into the FD ISA & then initiate the transfer for the total. That way no matter how inefficient they are you can't lose your £1k allowance?

PS I dont know why but I thought you could only pay into an ISA with one provider in the tax year, which the above would over come?

glider3560

soulsaver wrote: »

Why don't you pay the £1k into the FD ISA & then initiate the transfer for the total. That way no matter how inefficient they are you can't lose your £1k allowance?

I would, but I don't have a spare £1000 at the moment (but I certainly will have it mid-March).

AirlieBird

soulsaver wrote: »

PS I dont know why but I thought you could only pay into an ISA with one provider in the tax year

Probably because for simplicity everybody says you can only pay money into one ISA each year which isn't strictly true. The correct way to describe it is that all current year deposits must be held in the same cash ISA wrapper. So if you put £1,000 in to a Cash ISA with Bank A you can put the remaining £4,100 into a Cash ISA with Bank B PROVIDED you've already transferred the £1,000 from Bank A to Bank B.

glider3560

soulsaver wrote: »

PS I dont know why but I thought you could only pay into an ISA with one provider in the tax year, which the above would over come?

The HMRC guidance notes actually explain how this is possible

11.22 Where current year subscriptions are transferred
• the old ISA manager must exclude the subscriptions from the Annual Return of Information and enter ‘X’ in the Type of ISA box
• the new ISA manager must include the subscriptions in the Annual Return of Information and enter ‘A’ or ‘B’ as appropriate in the Type of ISA box

14.18 Amount subscribed
Where there have been no subscriptions in the tax year or the current year subscriptions have been transferred to another ISA manager, ISA managers should enter “0”. These are the only circumstances in which these boxes should show 0.

soulsaver

glider3560 wrote: »

I would, but I don't have a spare £1000 at the moment (but I certainly will have it mid-March).

" I've got about £1000 left to subscribe this tax year (i.e. I've subscribed around £4100)."

I took from these words you had. But I now realise you meant you had 1000 allowance left to subscribe. Soz.

glider3560

soulsaver wrote: »

" I've got about £1000 left to subscribe this tax year (i.e. I've subscribed around £4100)."

I took from these words you had. But I now realise you meant you had 1000 allowance left to subscribe. Soz.

My error, didn't make it clear. Reason I'll have another £1k in March is because I will (hopefully ) be getting back the deposit on my flat.