help i have two isa accounts

deemy2004

As others have mentioned

ONE ISA PER TAX YEAR

does not matter if you opened another one and then closed it - Your ISA's for the Tax year are VOID and are not ISA's any more. i.e. interest will be paid NET.

jetboy

I have a funds ISA which i opened ages ago. recently I changed one of the funds which was the first transaction in 3 years. Are you supposed to open a new maxi every year or can you use a current one up to the relief limit each year? I'm up to my limit on the cash mini.

deemy2004

I have a funds ISA which i opened ages ago. recently I changed one of the funds which was the first transaction in 3 years. Are you supposed to open a new maxi every year or can you use a current one up to the relief limit each year? I'm up to my limit on the cash mini.

You an open three different types of ISAs a year -
1 cash isa - 3k
1 stocks and shares isa - 3k
1 life insurance isa - 1k

or one maxi isa 7k - stocks and shares

Changing funds within an ISA wrapper does not effect the allowances. You can make as many changes as you want as long as you don't put any NEW money into a past year ISA.

Also you can use your current year ISA allowance on an existing ISA i.e. say you have a 2003/04 stocks and shares isa, then you 'should' be able to add this years 3k mini shares allowance to THAT ISA, call up your provider and make a request for this.

jetboy

thanx deemy, all is becoming clearer

pearl2009

Hi can I have some help too?

I opened an ISA HSBC years ago. This tax year put a bit of money in and took it out again. Its now at £0

The other day opened an ISA Lloyds. I told them a few times I had an ISA with HSBC which I had been active with this tax year. They put in my £4500 to this new ISA.

I am now confused as I know my remaining limit is not £600 as I have used my HSBC ISA this tax year.

Im confused that they opened this without even asking how much I had put into my HSBC one this year.

What do u suggest that I do? If I fill my Lloyds on this year will I get a letter or something or will my interest be taxable??

:-/ Thanks in advance
:money:

Lokolo

pearl2009 wrote: »

Hi can I have some help too?

I opened an ISA HSBC years ago. This tax year put a bit of money in and took it out again. Its now at £0

The other day opened an ISA Lloyds. I told them a few times I had an ISA with HSBC which I had been active with this tax year. They put in my £4500 to this new ISA.

I am now confused as I know my remaining limit is not £600 as I have used my HSBC ISA this tax year.

Im confused that they opened this without even asking how much I had put into my HSBC one this year.

What do u suggest that I do? If I fill my Lloyds on this year will I get a letter or something or will my interest be taxable??

:-/ Thanks in advance
:money:

Lloyds shouldn't have opened the ISA. The rules state that you cannot deposit to more than 1 ISA each year to stop this from happening (i.e. how are Lloyds meant to know how much you have deposited).

I would ring up HMRC and ask.

pearl2009

Whats HMRC's number??

pearl2009

I just called lloyds cause hmrc was shut and they said:

what ever i put in and take our of my hsbc isa this tax year it will not effect the limit on my llotds isa.

That doesnt sound right does it? then really i would be getting my tax free interest on both isas this tax year?!

Comyface

No, that doesn't sound right at all. Unless it's a different type of ISA (cash v. stocks and shares?).

I think HMRC (or whomever monitors this type of thing) write to the place you took out your 2nd ISA, in your case Lloyds, and tell them the account needs to be closed.

Mikeyorks

pearl2009 wrote: »

Whats HMRC's number??

You don't need it.

If you've reduced the HSBC ISA to £zero ........ then you've effectively closed it. Under those circumstances (and where you have withdrawn all funds - including any previous year deposits) ...... you're allowed to open an ISA elsewhere and in the same tax year and up to the full £5100..

It's known as 'self transfer'. The HMRC guidance tells you that you can't do it ........ and then goes on to describe examples of how to achieve it! But - if HSBC consider the ISA to still be open (unusual with a £zero balance) - then tidy things up and close it.