ISA allowance year to year

Motown78

I understand that this financial year the tax free allowance is £5,640 and last year was £5,340.

I just want confirm that if I transfer last years allowance from my older ISA to the new one which is paying a new rate, I still get to put an additional £5,640 in the new ISA this fiscal and get tax free savings? So in total I'll get £10,940 worth of tax free interest at the rate of my new ISA provider?

Also post doing this as my older ISA is paying such a poor rate now, I can just close it.

Thanks very much.

McKneff

I think you are over thinking.

Why not open a new ISA at the best rate, then transfer all old money into it, assuming theyh allow transfers in and then just put this years allowance, you then only have one ISA.

You can open and move as many ISAs as you want but you can only put 'new' money into one.

Never close an ISA yourself. Always get the new provider to do it for you.

thenudeone

To answer your question - transfers do not count towards this year's allowance. you can transfer it to a new ISA AND still put 5640 of new money in.