Closing Isa???

croftlands

Got an Isa with Santander opened in march 2010 so this means I've still got this tax years allowance.

If I wait untill the 27th of March for the full 12 months to pass is it ok to close that isa open a new one (3.3%) and put the money from the closed one into it then top it up to £5100 is there any tax loss ect?

Then I can open one after April for next years tax allowance

McKneff

Dont close the account yourself.
Go to the new place, get them to do the transfer then just add to it for this year.
It will all be in one ISA then.

Never take money out of an ISA yourself unless youre going to spend it.

p00hsticks

croftlands wrote: »

is it ok to close that isa open a new one (3.3%) and put the money from the closed one into it

To preserve the tax free status you need to do it the other way round - open a new one first (making sure that it accepts transfers in) and ask the new provider to transfer the money from the old one across

croftlands

McKneff wrote: »

Go to the new place, get them to do the transfer then just add to it for this year.


Never take money out of an ISA yourself unless youre going to spend it.

There won't be a new place current Isa with Santander new one is going to be with Santander, Its 3.3% as opposed to 3.2% with halifax (existing customer)

croftlands

p00hsticks wrote: »

To preserve the tax free status you need to do it the other way round - open a new one first (making sure that it accepts transfers in) and ask the new provider to transfer the money from the old one across

Nope it doesn't accept transfers in that's why i wondered if I could do it the way I asked.

jimjames

croftlands wrote: »

There won't be a new place current Isa with Santander new one is going to be with Santander, Its 3.3% as opposed to 3.2% with halifax (existing customer)

See this thread

https://forums.moneysavingexpert.com/discussion/3117870

There are definite benefits in keeping as much in ISAs as you can without closing the accounts. I'd wonder if it was worth the bother and loss of tax free status for 0.1%