ISA Rules Clarification

biscuitman73

Can you transfer an existing ISA to another new ISA and then put the full current years £15k into another new ISA in the same Tax Year?
Does this count as opening two ISA's in the same tax year?

badger09

biscuitman73 wrote: »

Can you transfer an existing ISA to another new ISA and then put the full current years £15k into another new ISA in the same Tax Year?
Does this count as opening two ISA's in the same tax year?

I assume you're referring to cash ISAs

You can transfer an existing ISA into another new ISA - providing the new ISA allows transfers in

You can then pay in the full current year's £5940 (which will increase to £15k in July) into another new ISA - again, providing the terms of that new ISA allow additional deposits in July - some Fixed Rate products may not allow this

Yes this does count as opening two ISAs in the same tax year, but that's fine because the rule is that you can only pay new money into one at at a time

Finally - don't get too hung up on cash ISAs :cool:

biscuitman73

badger09 wrote: »

I assume you're referring to cash ISAs

You can transfer an existing ISA into another new ISA - providing the new ISA allows transfers in

You can then pay in the full current year's £5940 (which will increase to £15k in July) into another new ISA - again, providing the terms of that new ISA allow additional deposits in July - some Fixed Rate products may not allow this

Yes this does count as opening two ISAs in the same tax year, but that's fine because the rule is that you can only pay new money into one at at a time

Finally - don't get too hung up on cash ISAs :cool:

Thanks Badger09.
Just to further clarify, if I've got more than one ISA to transfer could I transfer them into two different ISA's with different 'banks' and still open another ISA using this years £15k allowance?
Sounds as if I can but would want to make sure.

innovate

Provided you use the formal ISA transfer process, you can transfer as many ISAs as often as you like, without these transfers affecting your annual allowance.

roxy28

Can i just ask this question to make sure.

If i have already paid in new money this tax year to my cash ISA, can i after july 1st open a stocks and shares nisa, and add to that up to the limit, minus the money already paid to the cash ISA.

Archi_Bald

roxy28 wrote: »

Can i just ask this question to make sure.

If i have already paid in new money this tax year to my cash ISA, can i after july 1st open a stocks and shares nisa, and add to that up to the limit, minus the money already paid to the cash ISA.

You can put up to £11,880, minus what you already paid into you cash ISA, into an S&S ISA straight away since the ISA allowance pre-July is £11,880. From July 1, you can pay £15,000 minus what you already paid into cash/S&S ISA into either your cash or S&S ISA (T&Cs of your cash ISA allowing).

roxy28

Archi_Bald wrote: »

You can put up to £11,880, minus what you already paid into you cash ISA, into an S&S ISA straight away since the ISA allowance pre-July is £11,880. From July 1, you can pay £15,000 minus what you already paid into cash/S&S ISA into either your cash or S&S ISA (T&Cs of your cash ISA allowing).

Thanks.

I just wanted to make sure that i could open a new S&S Isa and add new money to it, so that would make paying in to 2 isas in the same year.
Hope it sounds right what i have said, but does sound wrong in practice?

Archi_Bald

You have always been able to pay into both, a cash and an S&S ISA, in the same financial year.

Don't allow people who only know about cash ISAs to confuse you.

In case you want to double-check:

http://www.hmrc.gov.uk/isa/faqs.htm#8

roxy28

Archi_Bald wrote: »

You have always been able to pay into both, a cash and an S&S ISA, in the same financial year.

Don't allow people who only know about cash ISAs to confuse you.

In case you want to double-check:

http://www.hmrc.gov.uk/isa/faqs.htm#8

Thanks Archi very helpful.

Just want to check another thing and may ask for your help again if i am still not sure about it.