How do i pay into my isa

Mikeyorks

patrickbateman wrote: »

Surely if the Government issue me as an individual an allowance, then I should be able to utilise it and not lose out because a bank closes an account.

The Government give you a Capital Gains Tax allowance of £10200 for this year ......... are you using it?

The BM T&Cs are very clear. And it's 'purchaser beware' if you decide to initially contribute less than the allowance. With a lot of providers you don't have options ....... if you choose a fixed term / fixed rate product - your initial deposit is it.

alastair_h

patrickbateman wrote: »

This ISA has now been pulled but I now want to invest the remaining £2K of this years allowance.

£2,340 of cash ISA left. You still have potentially £7,680 which you could invest in a S&S ISA of the 2011/12 allowance of £10,680 if you wanted to use it that way?

alastair_h

Mikeyorks wrote: »

The Government give you a Capital Gains Tax allowance of £10200 for this year ......... are you using it?

Mike, did you mean £10,680? It was £10,200 for 2010/11, or have I got the wrong end of the stick, so to speak?

financial_illiterate

alastair_h wrote: »

Mike, did you mean £10,680? It was £10,200 for 2010/11, or have I got the wrong end of the stick, so to speak?

Mike was possibly illustrating a point that just because you have an allowance, doesn't give you carte blanche to use it if you haven't followed the t&c's.

But I also think Patrick Bateman has a point too, ISA providers ought to be obliged to allow customers to use their full ISA allowance, even if they have contributed to a fixed deal in the same year.

As an idea, they could have a mandatory 0.1% interest rate on the 'extra' to put people off creating the additional administration required for a 'second' isa, but at least they wouldn't miss out on maximising their allowance for future years if they really wanted to use the full amount every year.

Mikeyorks

alastair_h wrote: »

..... or have I got the wrong end of the stick, so to speak?

No ......... we both have! I'm not sure where I conjured up the £10200 from. I think my brain did pick up the previous ISA allowance.

It was the CGT allowance I was referring to - which is, of course £10600 this year :-

http://www.hmrc.gov.uk/rates/cgt.htm

I was simply making the point - and using a very adjacent allowance which relatively few use - that's it's not the providers fault if you don't (fully) utilise an annual allowance.

gadgetmind

alastair_h wrote: »

Mike, did you mean £10,680? It was £10,200 for 2010/11, or have I got the wrong end of the stick, so to speak?

The *ISA* allowance for this tax year is £10.680, with a max of 50% into a cash ISA. The *CGT* allowance for this tax year is £10600, up from £10100 last year.