ISA Tax Year confusion.

Evangeline_1979

Hi guys I was wondering if somebody could help.

Two Questions:-

1st question

I opened a ISA in the tax year 2011/2012 and closed it this month (Jan 2013) . Can I still open another ISA for this Tax year?

my 2nd questions:-

If I can open a ISA for this current tax year (2012/2013) Can I close it in the new tax year and open another ISA ie close ISA on April 7th 2013 and Open a new one on April 8th 2013.

Any helpful advice would be gratefully received.:A

PS I would call the bank but I am trying to avoid those pesky 0845 numbers and the banks do not stay open long enough.

Torry_Quine

Have you put any money into the ISA this tax year? You can have as many ISAs as you want but can only put money into one in a tax year.

anamenottaken

Evangeline_1979 wrote: »

Hi guys I was wondering if somebody could help.

Two Questions:-

1st question

I opened a ISA in the tax year 2011/2012 and closed it this month (Jan 2013) . Can I still open another ISA for this Tax year?

Yes - provided you made no payment (subscription) into the account this year.

my 2nd questions:-

If I can open a ISA for this current tax year (2012/2013) Can I close it in the new tax year and open another ISA ie close ISA on April 7th 2013 and Open a new one on April 8th 2013.

Yes. You would be closing a 2012/13 account and opening one for 2013/14.

Why are you opening and closing ISA accounts? You do know you can keep an ISA open from a previous year and open a new one for a new tax year, don't you?


Any helpful advice would be gratefully received.:A

PS I would call the bank but I am trying to avoid those pesky 0845 numbers and the banks do not stay open long enough.

.............

bigfreddiel

what do you mean by close - have you transferred to a non-isa account?

if so you will have lost it's tax free status and that allowance for that tax year.

fj

mumx3

Can I ask why are you closing one then wanting to open another straight away?? normally you would just move them to a different provoider.

You can have as many ISA's as you want but can only pay into one per year, April to April.

p00hsticks

Evangeline_1979 wrote: »

I opened a ISA in the tax year 2011/2012 and closed it this month (Jan 2013) . Can I still open another ISA for this Tax year?

I'm going to assume that we're talking cash ISAs here...
A few questions ....

When did you last out put money into it ?
and how much ?
What do you mean by 'closed it' ? Did you withdraw the money ?

The general rules are...
If you've put the full ISA cash allowance (£5,640) into the ISA this tax year - i.e. since April 6th 2012 and then closed it and taken the money out again, then you've used your allowance for this year and you can't open another.
If you haven't put any money in since April 6th 2012, then yes, you can open another now.

Evangeline_1979 wrote: »

If I can open a ISA for this current tax year (2012/2013) Can I close it in the new tax year and open another ISA ie close ISA on April 7th 2013 and Open a new one on April 8th 2013.

Again, I'm not entirely sure what you mean by 'close it'..

If you open an ISA this tax year and put your allowance in it, then in the new year you can either add your new years allowance to it (if the particular ISA product rules allow it) or you can just leave it (there's no need to 'close it' ) and open another ISA for the next years allowance.

Robin_TBW

You don't need to keep closing them. Ask about ISA transfers.

Evangeline_1979

Thank you all you have all been a huge help I am very gratefull...(yes silly me I actually did close the account (not transfer but close) I did not know until after the fact that I could have kept it open and transferred. I should have read the terms and condition). I should have asked my bank for advice.

innovate

Evangeline_1979 wrote: »

I should have asked my bank for advice.

That is usually a very bad move. Banks will only ever tell you about their own products. For instance, they will not ever tell you if the bank next door (or any other provider) pays a much better interest rate.

MSE isn't a bad place to get a much broader spectrum. You could start with the MSE ISA guide, and then use the forum for any specific questions.

roxannafy48

Evangeline_1979 wrote: »

Hi guys I was wondering if somebody could help.

Two Questions:-

1st question

I opened a ISA in the tax year 2011/2012 and closed it this month (Jan 2013) . Can I still open another ISA for this Tax year?

my 2nd questions:-

If I can open a ISA for this current tax year (2012/2013) Can I close it in the new tax year and open another ISA ie close ISA on April 7th 2013 and Open a new one on April 8th 2013.

Any helpful advice would be gratefully received.:A

PS I would call the bank but I am trying to avoid those pesky 0845 numbers and the banks do not stay open long enough.

from what I know, yes on both counts, but bear in mind the ISA allowance. Just remember that every year you can invest 11,280 (or more from 2013/2014), regardless of when you close your previous ISAs


Cheers

innovate

roxannafy48 wrote: »

Just remember that every year you can invest 11,280 (or more from 2013/2014), regardless of when you close your previous ISAs

And remember you don't normally close your previous ISAs - you would ask your new provider to transfer them, in order to preserve the tax-free status of your previous savings