MiniCash ISAs

sue311

I have £12,000 in a mini cash ISA and want to transfere £3000 before the end of this tax year and £3000 at the start of the next tax year to each of my two daughters who are 16 and 19. They will open ISAs in their own names.
Does any one know wheather this would be possible and if I would loose much intrest as the new tax year is only a month away.
Any advise would be good
Thanks

RayWolfe

You can't transfer to other people.
You can take out the money and give it to your daughters.
You will get interest based upon the number of days your money is in the account, so you can do it whenever you want.
If you give more than £3000 away and die within 7 years, there may be inheritance tax implications.

tyllwyd

RayWolfe wrote:

If you give more than £3000 away and die within 7 years, there may be inheritance tax implications.

But you can give gifts of up to £3000 in a tax year
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/DG_10010612
so if you were worried about inheritance tax the best thing might be to spread it over a longer period.

LittleVoice

It also depends on the terms of your ISA. If it is a stakeholder ISA then there would be no penalty for withdrawals. You would need to give notice or lose interest for some other ISAs. You need to check the T&C of your specific ISA.

With £12K in one account, you may be earning a higher rate of interest than your daughters will get with just £6K each next year.

sue311

Thanks to you all for your advice