Do transfers count as the year's allowance?

Lois_and_CK

Say I've got a 2012/13 cash ISA that is an 'easy access' account where I paid monthly contributions. If I opened a new 2013/14 ISA that's fixed rate and doesn't allow additional deposits, and transferred the money from the old easy access one to the new ISA, is that it for this year? Does that transfer count as my 2013/14 allowance, or can I then make monthly deposits to my original 2012/13 ISA? Or is my 2012/13 ISA considered closed once I've transferred the money out?

Getting in a muddle!

MoneySaverLog

What you put in any previous tax years does not count towards the current annual allowance. So you can add a further £5760 this tax year and do whatever you want with any money saved in previous tax years.

You can only pay "new money" into one cash ISA in the current tax year.

jem16

Lois_and_CK wrote: »

Say I've got a 2012/13 cash ISA that is an 'easy access' account where I paid monthly contributions. If I opened a new 2013/14 ISA that's fixed rate and doesn't allow additional deposits, and transferred the money from the old easy access one to the new ISA, is that it for this year? Does that transfer count as my 2013/14 allowance,

The transfer does not count as your allowance for this year.

or can I then make monthly deposits to my original 2012/13 ISA? Or is my 2012/13 ISA considered closed once I've transferred the money out?

Getting in a muddle!

If you transfer the whole lot then the original ISA would be closed on transfer. If it was a part transfer then you could.

Probably best just to open a new ISA for this tax year for your contributions.

AlwaysLearnin

As long as you instructed the new provider to action the transfer and didn't withdraw from the old and deposit to the new yourself, then it's still last years allocation and you have this years still to use. Whether the ISA you opened last year is still the best option is up to you

Lois_and_CK

Thanks everyone for the fast replies, that's good news.

The best rates seem to be on fixed ones that don't allow deposits after a certain date like May. So I'd be a bit scuppered there as I would only be able to fill an ISA with monthly deposits.

I'm thinking of either a part transfer as Jem suggests to a fixed rate ISA so I can keep the old ISA to make monthly contributions to, or a full transfer and then save into regular savers instead. Then next year I could pay the money from the regular savers into a new ISA.

jem16

Lois_and_CK wrote: »

I'm thinking of either a part transfer as Jem suggests to a fixed rate ISA so I can keep the old ISA to make monthly contributions to,

Does your old ISA have a higher rate than the highest easy access for this tax year?

or a full transfer and then save into regular savers instead. Then next year I could pay the money from the regular savers into a new ISA.

That would be a waste of a year's allowance though.

AlwaysLearnin

You could drip into a nationwide flex direct for 5% up to £2500 (needing to satisfy monthly req's), then you could put in to an ISA before the end of this tax year if you wanted to