ISA Confusion: Please Help!

Tejstar

I need to open a mini cash ISA before the end of this tax year. As I have limited cash at the moment, I just wanted to know, if I open it with say £10 will I be able to maximise this account to £3000 during the next tax year?

I.e. Will I be able to put more money into the account when I have the cash (after April) or is it a case of the account being cut off after this tax year regardless of how much is in there?

Please help a newbie!

deemy2004

You cannot carry this years unused allowance into the next years ISA.

You have until the 5th of April 2005 to fund the account with £3k afterwhich you can only fund it with NEXT YEARS allowance of £3k

P.S. You get a £3k cash isa allowance every tax year.

So if you put in £1k this year, you can add another £3k next year = £4k invested.

You CANNOTput in £10 today and then £5,990 next tax year, but you can add £3k and thus have a maximum of £3010.

Tejstar

Cheers deemy2004 - that's cleared things up! :beer: