ISA headache

Sami_x

I have reread and reread Martin's ISA guide but I'm still not getting a couple of things. Hoping someone can help?

My Boyfriend has recently opened a clean rate ISA with Virgin and there is about £1200 in there. We may be able to get another £1000 in there before the tax year ends. Can he open (another) ie. the same clean rate ISA with Virgin for tax year 12/13 to start saving as his subscription has ended for 11/12?

I think I am going to transfer my 11/12 ISA into a Virgin ISA account too (obviously mine and not his) -reasons- transfers in allowed, clean rate, paid monthly. <-that suits us.

On a separate note that probably does not relate to us as we will be using our ISA savings sometime this year...if you save £5k in 11/12, transfer it to an ISA for 12/13 and save another 5k...can you then move that 10k the following tax year? and continue to do this? or is there a limited to how much you can transfer?

Thanks in advance

Mikeyorks

Sami_x wrote: »

My Boyfriend has recently opened a clean rate ISA with Virgin and there is about £1200 in there. We may be able to get another £1000 in there before the tax year ends. Can he open (another) ie. the same clean rate ISA with Virgin for tax year 12/13 to start saving as his subscription has ended for 11/12?

Yes. But why not continue to use the 'old' one if the rate is the same? You only need to start transferring them if the rate dips or there is a better rate elsewhere.

if you save £5k in 11/12, transfer it to an ISA for 12/13 and save another 5k...can you then move that 10k the following tax year? and continue to do this? or is there a limited to how much you can transfer?

Yes you can move the £10k - and continue. The only limit is if the provider you're moving to sets an upper threshold. Or, more simply, doesn't allow transfers in. But - you don't have to transfer each year - unless you're seeking a better rate. Other than fixed period / fixed rate ISAs ...... ISAs don't have an expiry period. It's normally only the rates you need to watch.

Sami_x

Mikeyorks wrote: »

Yes. But why not continue to use the 'old' one if the rate is the same? You only need to start transferring them if the rate dips or there is a better rate elsewhere.

But when this financial year ends does that mean that we can not put any more money into this ISA?

Thinking if it does we get the same ISA again for 12/13 (ie. in April) and start putting money in that one. I'm i making any sense?

McKneff

ISAs just run on, the only thing that is new, is the year.

If you have been putting in money for 5 years, it is still only 1 ISA, not 5. IYSWIM

Sami_x

McKneff wrote: »

ISAs just run on, the only thing that is new, is the year.

If you have been putting in money for 5 years, it is still only 1 ISA, not 5. IYSWIM

Thanks

So if we manage to put in 2k before the april does that mean after the financial year ends we have a brand now subscription allowance 5 and a bit K?

McKneff

It does indeed...........