H&L ISAs

mister_t

This may be a stupid question but when I opened a S&S ISA with H&L the other night it gave me the option of opening an ISA for 10/11 and also for 11/12.

All the cash ISAs I have previously held have made no distinction on the tax year, i.e. after the tax year has ended I can keep paying into it and the money counts towards the new tax year.

With H&L can I only put money in up to the 10/11 limit. It let me set up a monthly direct debit which is due to start in May so why open an ISA for both years?

I'm very confused.

DavidHayton

If you pay into the ISA before 5 April, that will count towards your 2010-11 allowance; any money that you pay in after 6 April (e.g., bu your April regular contribution) will automatically trigger your 2011-12 ISA allowance with HL.

I think that HL are trying to be helpful by specifying two different forms to make it suitable for someone who has already used their 2010-11 allowance, or is intending to use their 2011-12 allowance elsewhere. But I can appeciate your confusion.

If it helps, I opened an HL S&S ISA back in about 2000, set up a regular monthly subscription and never filled in another application form since. Every year my April contribution (goes in after April 6) triggers my next year's S&S ISA allowance with HL.

David

dunstonh

All the cash ISAs I have previously held have made no distinction on the tax year,

yes they have. It is an HMRC mandatory.

With H&L can I only put money in up to the 10/11 limit. It let me set up a monthly direct debit which is due to start in May so why open an ISA for both years?

you are mixing up monthly premium options with single premium options.

Someone with a lump sum to invest of say £30k in February, March will usually complete a dual ISA application what puts £10,200 in the 10/11 ISA, £10,680 in the 11/12 ISA and the rest unwrapped.

mister_t

OK, makes sense now. Thanks for the replies.