Budget: £15000 ISA Limit from 01/07 for Cash OR S&S

Doshwaster

Consumerist wrote: »

This was a rabbit-out-of-the-hat measure so I suspect the savings institutions will need time to gear up for the new ISA.

I suspect that the industry would have already have been consulted about these changes but they said that they couldn't bring in the changes in time for the start of the next financial year.

lisyloo

Can people deposit £5940 before July, then deposit a further £15,000 afterwards?

I would guess not, but you could obviously increase after July.

Freecall

yatinsardana wrote: »

I've never transferred money between isas in the past. Do you know how easy it is to transfer money?
Previously you've been able to transfer from cash to stocks - any experience on how quick and easy it is?

In my experience :

Cash to S&S = about a fortnight
Cash to Cash = about a week
S&S to S&S = several weeks (in specie)
S&S to Cash = N/A

The only one of these that I would expect to change is the last one and assuming that you already hold sufficient cash in the S&S ISA (or NISA) then I don't see why it should take any more than Cash to Cash (ie. about a week)

Mattygroves2

DragonQ wrote: »

Another point is what happens between 6th April and 1st July? Can people deposit £5940 before July, then deposit a further £15,000 afterwards?

I doubt it - it will be a maximum of £5,940 / £11,880 before July and then the balance afterwards. No doubt to let the industry get their act together and develop offerings. Good news all round I think.

veryintrigued

DragonQ wrote: »

Another point is what happens between 6th April and 1st July? Can people deposit £5940 before July, then deposit a further £15,000 afterwards?

Almost - see factsheet.

£5940 up to 1st July and then up to the £15k (i.e. a further £9060) between 1st July 2014 and 5th April 2015.

That messes up the Regular Saver ISA I had planned in!

Archi_Bald

Big Q will be for those who take out a fixed term cash ISA on April 6 and whose deposit window ends before July 1. How are they going to get the delta into a cash ISA in 2014-15? Should be interesting to see how the likes of Santander respond to this.

May be need to put the rest into a S&S ISA, and then immediately transfer into a cash one. Are we going to see a second ISA season in July then?

abacus11

A lot of the questions about how this works are answered in the document linked from HMRC's website.

The document you want is "New ISA, Junior ISA and Child Trust Fund: increasing the flexibility for savers and investors: guidance".

I can't post a link to it as a new user.

Herbalus

Welcome news! Though I imagine it's taken a lot of people by surprise and changed plans for many people.

I was one of those agonising over putting money in ISAs now from higher-paying accounts, for the future interest rises. Now it seems I don't have to as it'll be much easier to put larger amounts into ISAs in the future

veryintrigued

i.e. more money being pushed into ISAs - will the institutions take this opportunity to reduce rates even further?


Surely not?

Archi_Bald

Thanks abacus11. Here's the link

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293756/8079____New_ISA_Junior_ISA_Child_Trust_Fund__Budget_14_Final_v1.0.pdf