MSE News: Budget 2015: ISAs to become fully flexible with withdrawals allowed

amictus

Ed-1 wrote: »

Yes it's only current year subscriptions that you have to keep together in one ISA or a combination of one cash ISA/one S&S ISA. Transferring current year subscriptions between ISA types are treated as if the subscriptions were made to one ISA type in the first place (e.g. transferring current year S&S subscriptions to a cash ISA are then treated as cash ISA subscriptions). You can transfer previous years subscriptions separately.

Good stuff, thanks Ed-1.

masonic

owains wrote: »

It doesn't actually say explicitly that it will be possible to subscribe to a Help to Buy ISA, and another cash ISA with the same provider. I didn't think it was possible to subscribe to two cash ISA accounts with the same provider at the moment (though I may well be wrong - see my previous posts!). The first sentence suggests the Help to Buy ISA won't be treated differently.

ISA managers are allowed to treat multiple ISA accounts held by them as a single ISA for reporting purposes, so you are allowed to split your cash ISA subscriptions between different accounts with the same provider as long as they allow it (not all do).

amictus

masonic wrote: »

ISA managers are allowed to treat multiple ISA accounts held by them as a single ISA for reporting purposes, so you are allowed to split your cash ISA subscriptions between different accounts with the same provider as long as they allow it (not all do).

Interesting. Thanks again for the info. Sounds like this will be a real option then, which is good!

roddydogs

Surely after next year with a tax free £1000 pa interest wont ISAs be dead for all practical purposes? For the great majority anyway.

masonic

roddydogs wrote: »

Surely after next year with a tax free £1000 pa interest wont ISAs be dead for all practical purposes? For the great majority anyway.

S&S ISAs will continue to be very useful. Cash ISAs will only be useful for a small minority who have a huge sum in cash savings and/or pay a higher rate of tax (which is already the case in some respects).

saintalan

Why dont they just make it easy.

Subject to its limits just make money in an ISA Tax Free and taxable when its not.

jimjames

saintalan wrote: »

Why dont they just make it easy.

Subject to its limits just make money in an ISA Tax Free and taxable when its not.

That's the situation now.

I'd much prefer to have all interest tax free so I can get best rate not need a cash ISA.

saintalan

jimjames wrote: »

That's the situation now.

I'd much prefer to have all interest tax free so I can get best rate not need a cash ISA.

Yes I agree, what I meant though was without the need to put it back in the same year.

Cheers

EarthBoy

masonic wrote: »

ISA managers are allowed to treat multiple ISA accounts held by them as a single ISA for reporting purposes, so you are allowed to split your cash ISA subscriptions between different accounts with the same provider as long as they allow it (not all do).

Nationwide allows you to do this, but I don't know of any others.

zolablue25

roddydogs wrote: »

Surely after next year with a tax free £1000 pa interest wont ISAs be dead for all practical purposes? For the great majority anyway.

Given current rates of interest you are probably correct. However, the current levels are not "normal" when compared to historic rates. £1000 of interest at, say 10%, would only require a deposit of £10,000 and whilst this is a lot of money to many it is held by a significant proportion of the population (just check out the threads on interest bearing current accounts)