ISA rules

Gordon_the_Moron

A friend has just asked me if he can open another cash ISA before the end of the tax year, he has one now for this year and he has put £3000. He wants to use the Barclays Tax Beater ISA for next year's £3000. He has the £3000 sat in a savings account waiting to deposit it, can he open the tax beater account now and deposit the £3000 on the first day of the next tax year?

I think he can as long as he doesn't put any money in until the new tax year but I'm not sure, can anyone confirm this?

Da Moron

ariba10

You are allowed to put £3000 in a cash ISA and £4000 in a share ISA or £7000 in a share ISA in any one financial year.

masonic

I believe Barclays require an initial deposit before they will open the account. Your friend could either write a cheque now or wait if they don't want to pay by cheque.

Gordon_the_Moron

ariba10 wrote: »

You are allowed to put £3000 in a cash ISA and £4000 in a share ISA or £7000 in a share ISA in any one financial year.

I know that but can you OPEN another account this tax year and leave it empty until April 6th?

oldfella

I know that but can you OPEN another account this tax year and leave it empty until April 6th?

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you can open it now for the 2007/8 tax year

masonic

Gordon_the_Moron wrote: »

I know that but can you OPEN another account this tax year and leave it empty until April 6th?

Yes, but not with Barclays. They require you to fork out the dosh upfront. Presumably they earn the interest on the money until they are allowed to put it into an account for you.

LittleVoice

April the 6th this year is a Bank Holiday.
Next Bank Working Day is Tuesday 10th April.
This might mean you can't add money to your ISA till the Tuesday.

(Nationwide might let you open an account on 6th April if you go online that day - as they do take Standing Order money from your current account on Saturdays and Bank Holidays.)