Tell us you cash ISA questions

FluffyKatzen

My fixed term Lloyds ISA comes to an end send very  soon, so far I’m seeing my options are T212 or Chip. Some of this ISA allowance may be used as a part of a house deposit within a year or so. I have maxed out my ISA for this year. Has anyone had any issues with transferring an ISA from Lloyds to one of the above and are there any personal recommendations?

 I read that the T212 ISA bonus is only given if you deposit within 10 days, which I can’t do as I am maxed out so the only option for me is to hope the transfer will take place within 10 days. Thanks 

MoneyMisser

I have a question which I hope someone can help me with about Flexi ISAs. If for example you had £35,000 in a Flexi ISA, £20,000 of which is the current tax year. Could you take out £30,000 and replace it in the same tax year, or is the limit just the £20,000?

slinger2

MoneyMisser said:

I have a question which I hope someone can help me with about Flexi ISAs. If for example you had £35,000 in a Flexi ISA, £20,000 of which is the current tax year. Could you take out £30,000 and replace it in the same tax year, or is the limit just the £20,000?

Yes, you can take out all £35k if you wanted. The £20k is your annual allowance, nothing to do with flexibility.

rushdenx1

Over the past 3 years I have opened each year a new £20,000, 1 yr fixed Cash ISA.  At the end of the term I have then reinvested the whole amount into a new 1 yr fixed Cash ISA. My question is that if the Chancellor reduces the amount of money we can invest each year into a Cash ISA to say £4,000, does this mean I can only reinvest £4,000 of the £20,000 I have in existing ISA's each year tax free ?

slinger2

No. If they just cut the annual allowance it won't affect any existing savings. "Transfers" do not use any of your allowance.

masonic

rushdenx1 said:

Over the past 3 years I have opened each year a new £20,000, 1 yr fixed Cash ISA.  At the end of the term I have then reinvested the whole amount into a new 1 yr fixed Cash ISA. My question is that if the Chancellor reduces the amount of money we can invest each year into a Cash ISA to say £4,000, does this mean I can only reinvest £4,000 of the £20,000 I have in existing ISA's each year tax free ?

Presumably you've earned some interest on this money, so unless you've withdrawn it you are already transferring more than the annual allowance at the end of your fixed term.

MissSeaforth

Hi, I would like to ask for your help please to clarify HMRC ISA Savings Rules specifically around the Tax year annual limit of £20,000.  

1. Is the £20K/tax year limit the amount I can move into an ISA each tax year OR is the £20K/tax year the total amount I can hold invested in ISAs in a tax year?
2. Can I build up each year the total invested in ISAs and potentially after 3 years have £60K in ISA earning tax free interest?  So do I get another £20K to put in to ISA each year?
3. Each year I would re-invest the £20K ISA as it matures into a new ISA and accumulate the amount of tax free savings in ISAs over the years?

Thank so much for any any answers to help me understand this.

Ch1ll1Phlakes

MissSeaforth said:

Hi, I would like to ask for your help please to clarify HMRC ISA Savings Rules specifically around the Tax year annual limit of £20,000.  

1. Is the £20K/tax year limit the amount I can move into an ISA each tax year OR is the £20K/tax year the total amount I can hold invested in ISAs in a tax year?
2. Can I build up each year the total invested in ISAs and potentially after 3 years have £60K in ISA earning tax free interest?  So do I get another £20K to put in to ISA each year?
3. Each year I would re-invest the £20K ISA as it matures into a new ISA and accumulate the amount of tax free savings in ISAs over the years?

Thank so much for any any answers to help me understand this.

1. The first. You can ADD £20k each tax-year.
2. Yes you can continue to build the amount in your ISAs. And yes currently you will get another £20k allowance every tax-year, though this could be subject to change in the future.
3. If you are talking about interest, yes it stays in the ISA without affecting your allowance. Any funds in the ISA when it matures stay in the ISA and you can re-invest them or transfer them to a new ISA provider.

Note: if you do want to move to a different provider please TRANSFER your ISA. Don't withdraw and re-deposit.

If you need any further info let us know.

MissSeaforth

Ch1ll1Phlakes said:

MissSeaforth said:

Hi, I would like to ask for your help please to clarify HMRC ISA Savings Rules specifically around the Tax year annual limit of £20,000.  

1. Is the £20K/tax year limit the amount I can move into an ISA each tax year OR is the £20K/tax year the total amount I can hold invested in ISAs in a tax year?
2. Can I build up each year the total invested in ISAs and potentially after 3 years have £60K in ISA earning tax free interest?  So do I get another £20K to put in to ISA each year?
3. Each year I would re-invest the £20K ISA as it matures into a new ISA and accumulate the amount of tax free savings in ISAs over the years?

Thank so much for any any answers to help me understand this.

1. The first. You can ADD £20k each tax-year.
2. Yes you can continue to build the amount in your ISAs. And yes currently you will get another £20k allowance every tax-year, though this could be subject to change in the future.
3. If you are talking about interest, yes it stays in the ISA without affecting your allowance. Any funds in the ISA when it matures stay in the ISA and you can re-invest them or transfer them to a new ISA provider.

Note: if you do want to move to a different provider please TRANSFER your ISA. Don't withdraw and re-deposit.

If you need any further info let us know.

Thanks very much for your help.

eskbanker

MissSeaforth said:

Each year I would re-invest the £20K ISA as it matures into a new ISA and accumulate the amount of tax free savings in ISAs over the years?

Just to be clear, the concept of ISAs 'maturing' only applies to fixed-term products - for any other type of ISA you can simply continue to contribute to the same one rather than having to do anything different from one year to the next.