ISA Cash allowance

JohnR21

Ok, I opened a Issue 3 ISA with Barclays three days before the end of the 2010/2011 tax year and transferred the full £5100 into it. Because the interest rate on it is fixed for the year, i thought i'd transfer the new allowance (5340) into the same ISA after the 6th April.

I have savings left over which i thought i could transfer into a new - yet to be opened - 2011/2012 ISA, but a letter from Barclays indicates i can't.

Can i only deposit £5340 a year into ONE ISA whether its from the last tax year or this one, meaning that i can't open one in my name this year?

Thanks

Baldur

JohnR21 wrote: »

Ok, I opened a Issue 3 ISA with Barclays three days before the end of the 2010/2011 tax year and transferred the full £5100 into it. Because the interest rate on it is fixed for the year, i thought i'd transfer the new allowance (5340) into the same ISA after the 6th April.

Have you subscribed ANY new money into this ISA on or after 6th April 2011?

If not, you can open & fund a Cash ISA with any ISA provider for your 2011/12 allowance.

JohnR21

Baldur wrote: »

Have you subscribed ANY new money into this ISA on or after 6th April 2011?

Yes,

I deposited the full £5340 for this tax year into my ISA that I opened in the 2010/2011 tax year. The deal is the same as it would be if i opened an ISA this FY, so I thought I'd just pay into that instead.

I guess I can't open an ISA for this tax year and pay another £5340 into it?

Unless my wife opens one?

DermotFlanigan

Im sure you can because HSBC state that you need over £9000 in their ISA account in order to get the highest rate interest. That would only be possible if deposits were made in separate FYs.

DermotFlanigan

Sorry. Upon reading that again I don't think my reply is relevant.

Baldur

JohnR21 wrote: »

Yes,

I deposited the full £5340 for this tax year into my ISA that I opened in the 2010/2011 tax year. The deal is the same as it would be if i opened an ISA this FY, so I thought I'd just pay into that instead.

I guess I can't open an ISA for this tax year and pay another £5340 into it?

That's correct - it doesn't matter when the account is opened, it's when you subscribe new money to it that counts; so you have already used your 2011/12 Cash ISA allowance.

JohnR21

That's cleared that up then, however there is nothing to stop my wife opening one and me paying into that is there?

Baldur

JohnR21 wrote: »

That's cleared that up then, however there is nothing to stop my wife opening one and me paying into that is there?

No, just remember that it's her money as long as it's in the ISA - ISAs are individual savings accounts.

JohnR21

What's her's is mine, what's mine is my own... and all that!

Thanks for your help