ISA transfer question

newbie5a

Hi all,

I have a slightly bizarre and probably simple question to ask but it is causing me to question myself. I'd be grateful for people's thoughts...

I have today opened a cash ISA with Santander with a view to transferring my current ISA from Natwest into this. This account opened immediately and is already viewable in my Santander online banking. I have completed a transfer request form and will post this tomorrow.

My question is: I have not yet subscribed to my cash ISA for the current tax year (2012/13). Given that I now effectively have two open ISA's with a transfer to come, where should I deposit for 2012/13 before Friday? In my opinion it shouldn't matter but clarification would be most welcome.

Thanks!

innovate

Easy - given you deposited £0 so far into a 2012-13 ISA (have you really?), put your 2012-13 money into your Santander ISA provided you can be 100% certain it arrives there before end of play on April 5. Sounds like this can be easily done with an internal transfer?

newbie5a

innovate wrote: »

Easy - given you deposited £0 so far into a 2012-13 ISA (have you really?), put your 2012-13 money into your Santander ISA provided you can be 100% certain it arrives there before end of play on April 5. Sounds like this can be easily done with an internal transfer?

Thanks - an internal transfer would indeed do it immediately.

I am of the opinion that it shouldn't matter where I put the money given that I am going to action an ISA transfer but I have had a couple of issues with ISA's in the past so want to do this the right way. Am I right?

innovate

what benefit would you have if you paid the money into your old ISA, that might already be in transfer by the time your funds arrive in it?

Are you trying to make things deliberately complicated for yourself?

newbie5a

innovate wrote: »

what benefit would you have if you paid the money into your old ISA, that might already be in transfer by the time your funds arrive in it?

Are you trying to make things deliberately complicated for yourself?

Quite the opposite. I can transfer the money right now via internal transfer into either ISA. The transfer form won't be posted until tomorrow.

innovate

OK, so you have answered your own Q now?

newbie5a

innovate wrote: »

OK, so you have answered your own Q now?

You would think so wouldn't you but last time I did this it got messy as the transfer started to count towards my annual allowance. This is why I am contemplating just funding the old ISA before actioning the transfer.

badger09

newbie5a wrote: »

You would think so wouldn't you but last time I did this it got messy as the transfer started to count towards my annual allowance. This is why I am contemplating just funding the old ISA before actioning the transfer.

I can think of at least 3 possible reasons for this

1) you had paid some money into the ISA which was transferred, during that same tax year (eg 2010/11 ISA subscription transferred during 2010/11); in which case treatment was correct

2) you tried to do the transfer yourself, rather than ask the new provider to do it; in which case treatment was correct

3) old or new provider made a mistake; in which case treatment was incorrect

Did you get it sorted?