Does ISA interest count as part of the yearly allowance?

quatro

I have some interest due on an ISA from 2010-2011 and it will be added to the account on Wednesday [I assume]. Is this amount then counted as part of the allowance for 2011-2012 - or can I add the full £5340 to the account on Wednesday 5th April?
Thanks

Linton

quatro wrote: »

I have some interest due on an ISA from 2010-2011 and it will be added to the account on Wednesday [I assume]. Is this amount then counted as part of the allowance for 2011-2012 - or can I add the full £5340 to the account on Wednesday 5th April?
Thanks

Interest forms part of the original ISA. Interest from past years doesnt affect your entitlement for this year.

CLAPTON

interest doesn't form part of the yearly allowance so you can save the full 5340 whatever interest you earn

Baldur

CLAPTON wrote: »

interest doesn't form part of the yearly allowance so you can save the full 5340 whatever interest you earn

....and go on doing so, year after year, as long as ISAs exist in their current form.

CLAPTON

ps

wednesday is the 6th april and the earliest date you can invest the 5340

Ifts

The interest you earn on your Isa savings does not effect your annual allowance.
As mentioned above from Wednesday 6th April, you can put in the full £5340 into your 2011/12 cash Isa.

I try to fund my cash Isa at the earliest opportunity on or soon after the 6th April each year, that way the interest I earn over the year also adds to my cash Isa balance and helps me get a few quid more into the Isa sheltered away from the tax man.

Every little helps