Transferring old ISA

Channelcrosser

Hi, I am sure this has been asked before and Martin keeps on about transferring ISAs to get the best deal.

I have a 2007/8 ISA worth £5340 which now has bad returns. If I move it before the end of this tax year and transfer to another provider with a better rate, can I also invest a further £5340 with another ISA provider?

Any input appreciated - thanks

Chanelcrosser

SnowMan

Channelcrosser wrote: »

Hi, I am sure this has been asked before and Martin keeps on about transferring ISAs to get the best deal.

I have a 2007/8 ISA worth £5340 which now has bad returns. If I move it before the end of this tax year and transfer to another provider with a better rate, can I also invest a further £5340 with another ISA provider?

Any input appreciated - thanks

Chanelcrosser

Welcome to the forum.

I am assuming we are talking cash ISAs here.

The simple answer is yes.

As long as you haven't subcribed to an ISA this tax year (which you don't seem to have) you can open another ISA and suscribe this year's £5,340 allowance.

This would be completely independent of what you do with the 2007/2008 ISA.

So you could subscribe the £5,340 to the same ISA provider you transfer your 2007/2008 ISA to or to a completely different ISA provider.

The only thing that would stop you are the rules of the ISA provider, some don't for example allow transfers of previous years ISAs.