Confused about transferring a previous years ISA- please help!

nez75

Hi everyone, I'm new to this forum and this is my first post!

I've read all the background information about transferring Isa's but I just need a couple of things confirming to make sure I've got things right in my head!

I've got a previous years ISA that I would like to transfer into a new one, I haven't paid into my previous one for about 5 years now.

What I would like to know is does this balance contribute to this years subscription? Can I still pay £5640 into my new ISA this year as well as the balance from my previous ISA? (This would take the balance over £5640 for this year)

Or, can I only top up the ISA to £5640 on top of the balance from my previous ISA? (which would mean I won't be saving as much as i'd like this year)

I'm confused, thanks for your advice in advance!

innovate

Are you sure you read all the background information about transferring ISAs?

Transfers do not contribute to your current year's allowance. Provided, of course, you request your receiving bank to make the transfer.

You can pay your 2012-2013 allowance of £5,640 into the same ISA you had your old ISA transferred into - but read all the T&Cs, some fixed-term ISAs have limitation on pay-ins.

You can also pay your £5,640 into an entirely different ISA. This could be useful if you want a high-interest ISA which doesn't allow transfers in.