ISA New declaration?

will346

Hi all!

I might be really thick here but was wondering if anyone could clear this up. I opened an ISA during Tax year 2011/12 and saved some money up and just left it. I recently received a letter from my bank encouraging me to make use of the 2012/13 allowance. What confused me was:

"If you subscribe to your ISA during this tax year (2012/2013), you can make further subscriptions to it in the next tax year (2013/2013) without the need to complete a new ISA declaration.

If you do not subscribe to your cash ISA during this tax year (2012/2013), you will need to complete a new declaration before subscriptions can be made in the next tax year."

I was under the impression that it was like a normal savings account and I just wanted to leave whatever money is in there untouched for however long I wanted.. I'm currently a post-graduate student and am possibly looking to go abroad this Summer for a minimum of one year. I do have some cash spare at the moment which I was going to either put in my existing ISA or if there's a better rate for 2012/13 then open a new one, but if I go abroad in the Summer, this will be used. But I don't understand what the bank means about making new declarations on the previous existing pot that I have... if anyone has any ideas, please help!

Thanks
Will

bigfreddiel

will346 wrote: »

Hi all!

I might be really thick here
.....
Thanks
Will

yep, you're right- you are thick -well you said it!!!! heheheheh

luckily it's all very simple

one golden rule - always TRANSFER isa's

1 open an isa - that's your current one

2 pay money into current isa

3 repeat process each year

fj

xylophone

It means what it says - if you contribute to the isa account you opened in the tax year 11-12 in this tax year (12-13) then you will not need to sign a new isa declaration.

If however you do not contribute to the ISA account you opened in the 11-12 tax year in this tax year (12-13), then if you wish to contribute to it in the next tax year (13-14), you will have to sign a fresh declaration.

will346

Ok... so if I didn't want to change anything, didnt want to subscribe then I could just leave it without making a new declaration?

sweetme

If you don't want to subscribe you don't need to do anything. If you choose to subscribe next year you will need to sign a declaration.

McKneff

bigfreddiel wrote: »

yep, you're right- you are thick -well you said it!!!! heheheheh

luckily it's all very simple

one golden rule - always TRANSFER isa's

1 open an isa - that's your current one

2 pay money into current isa

3 repeat process each year

fj

##

Not nice, how would you like it if i said you are thick because you dont know how to knit or rewire a house. Or cook a lasagne.

OP, just a point, if you are ever going to transfer an ISA, always get the new provider to do it for you, never do it yourself.

ha.....

innovate

will346 wrote: »

Ok... so if I didn't want to change anything, didnt want to subscribe then I could just leave it without making a new declaration?

Yes.

Don't get befuddled by the letter you got.

A 'new declaration' is dead easy to do, anyway. So is opening a new ISA.

VfM4meplse

innovate wrote: »

Yes.

Don't get befuddled by the letter you got.

A 'new declaration' is dead easy to do, anyway. So is opening a new ISA.

Yet financial institutions seem to revel in ambiguous language which I think is designed to attempt to capture business (or at least divert from competitors) under false pretences - I had myself querying something similar recently, even though I know the rules. I'm glad I persisted and got what I wanted in the end.

will346

Thanks guys! Been really helpful. I suspected it was a ploy to try get me to keep subscribing though theyre not the ones with the best rate at the mo.