help i have two isa accounts

KingL

see the "second loophole" section in this article for more about the peculiar practice of self-transfer...

cyclonebri1

Hmmm, 6 year old thread eh , is that some sort of record?

pearl2009

i just called HMRC and they told me that my lloyds isa was void and that my interest would be taxed. How pants is that all for the sake of abou t£100. They said that they would write to me too. Lloyds really need to train their staff better

Mikeyorks

pearl2009 wrote: »

i just called HMRC and they told me that my lloyds isa was void and that my interest would be taxed.

If your original post is correct - then they've given you wrong information. As I said in my earlier post - provided you took all the money out of the original ISA before you opened the new one then you've 'self transferred' it. Which is allowable.

Read 12.30 thru 12.33 (inc the example) in the HMRC guidance here. If it fits your circumstances - ring them again (it was the ISA helpline?) and quote the guidance (note, in particular, that 12.33 qualifies that the original ISA was 'closed' by taking all the funds out) :-

http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf

....... despite the guidance is dated 4/2008 it's still current.

Zack98_2

Hi,
I have an ISA opened years ago with Bank1 and its empty and its set for yearly paid interest.
Recently I opened another ISA with Bank2 and put it 5100 for this year and this bank paying me interest monthly.
Now this is my question,

Can I take interest from Bank2 till 31st March 2011 and then take out that money from Bank2 and put that money to Bank1 to get yearly interest from Bank1?

Thanks in advance for reply

Lokolo

Zack98 wrote: »

Hi,
I have an ISA opened years ago with Bank1 and its empty and its set for yearly paid interest.
Recently I opened another ISA with Bank2 and put it 5100 for this year and this bank paying me interest monthly.
Now this is my question,

Can I take interest from Bank2 till 31st March 2011 and then take out that money from Bank2 and put that money to Bank1 to get yearly interest from Bank1?

Thanks in advance for reply

No you can't.

And you won't get the whole years interest for having the money in there for a month or so. You'd only get 1/12th or whatever.

KingL

Zack98 wrote: »

and then take out that money

it depends whether by "that money" you mean the interest earned or the principal sum in the account.

If you mean the interest, then the answer is no. If you mean the principal (big) amount, then yes. Make sure you use the transfer process to do it.

phillyrob

Hi,

I have a slightly different problem. I already had a Cash ISA with Natwest (opened years ago), and decided to open an E-ISA (also with natwest) as the interest rate was a lot better. I went into my local branch and asked how do i transfer all the money from my cash isa to my E-ISA and they basically said I've got to do it all online as its an internet only account so they cant help!

So, I decided to do a quick transfer between the accounts (read a lot of gumf about transferring from different providers but nothing about from one account to the other with the same provider so thought it would magically know that i was just transferring from one ISA to another and not making a deposit), transferred £5000 in bits and bobs fine, then went to tranfer the rest of the balance, but it said I had reached my limit for the tax year and i should check the account details. Checked them and it says I can only deposit another £100 this tax year :-/

So now i've got 2 ISA accounts (one which i dont want to use anymore) which i cant deposit any money into until next April!?

(Thought I'd post the question here before going into my local Natwest as you guys seem a lot more helpful!!)

EmeraldEncrusted

Pardon me for my ignorance, but it's news to me that you're only allowed 1 cash ISA a year. I always assumed you could have as many as you wanted providing the sum total of all of them didn't exceed the allowance for the year?

In fact I remember a financial adviser once asked me whether or not I was using my full allowance for that year (after I told him I already had one), in order to sell me their own ISA. Surely he wouldn't have asked this if you're not allowed to keep it in more than one place?

The reason I ask this is because I was going to hedge my bets this year and go for splitting the money with half in a fixed term higher rate ISA and the half in an easy access one. Is this allowed?

All help appreciated... Thanks

KingL

phillyrob wrote: »

So, I decided to do a quick transfer between the accounts (read a lot of gumf about transferring from different providers but nothing about from one account to the other with the same provider so thought it would magically know that i was just transferring from one ISA to another and not making a deposit)

Yer, the ISA industry has long established procedures for transferring between different providers, but if it's within a particular provider, it varies a lot, because it's just a local in-house procedure. You'd probably have more luck phoning the online ISA helpdesk rather than talking to the dolts in-branch again.

As far as HMRC are concerned, Natwest could resolve this in-house. Whether you can find someone with the brains and will to do it is another matter!