ISA Direct ?

grumbler

joe2cool wrote:

Rather than transfer if required at a later date , could always just take all the cash out & open another yourself ? save £25?!

You can 'take the cash', but in this case you cannont then 'open another' ISA during this tax year. If you want to keep ISA you must transfer it. Read 'What is an ISA?' article.

isasmurf

joe2cool wrote:

Rather than transfer if required at a later date , could always just take all the cash out & open another yourself ? save £25?!

As grumbler says, technically its not allowed and should not be encouraged. But if you do do this then 2 problems arise with it
1. The bank will not allow you to put more than £3,000 into the ISA
2. You will lose up to two years worth of tax relief. (HM Revenue & Customs will class this as a self transfer for which tax is payable between the date of opening and the date which HMRC tell the bank that it can be tax free - usually up to a year after the end of the tax year to which it relates - and I've heard it's not as straight forward as taking 20% of the interest paid, but can be a lot more)

Paul_Varjak

isasmurf:

Thanks for the links on transfer of ISAs. It will take a bit of digesting but I think it is basically saying that the ISA holder can choose which year of contributions they wish to transfer.

joe2cool

Thx again, appreciated