Isa confusion -newbie

Minish

:o
Hello. I opened a cash ISA in 2011/12. I've not opened a new cash ISA this year yet,but I've just recently transfered last years ISA to another provider. Rather than open a second ISA (ie one ISA for this year), I've been advised I can just add money to the ISA I've just transferred over to get more interest as there will be more money

Apologies if this isnt clear, but I would like to know if I can transfer last years cash ISA to another bank , and then add £5,600 to this one ISA. My understanding is I can only pay in upto around £5,600 for tax period 2012/13?

jimjames

If you haven't added £5640 of NEW money to the ISA this year then you can still use that allowance for your old ISA or one with a different bank

innovate

Transfers do not count towards your annual allowance.

psychic_teabag

innovate wrote: »

Transfers do not count towards your annual allowance.

... as long as you used the proper ISA transfer process, rather than just withdrawing the money from the first ISA and carrying it round to the new provider and depositing it.

As jimjames says, you can choose whether to add new money to this existing ISA, or open a new one. But having chosen one, you must use that for all the new money : you can't (in general) put some in the existing ISA and some in a new ISA.

Minish

Thank you all for your replies.I did forget to mention in my previous post that I had asked my new bank to transfer the money over rather than take the money out myself. I'll probably just keep the one account Isa for now, made up of old money from last year and new money for this year