Opened 2 cash ISA 's this tax year, its a no no?

roxy28

Dad had a fixed rate Isa end 4 weeks ago, he opened a variable ISA with the same bank and the fixed term one was transfered in to this.
No new money has been added, he then wanted to transfer this Isa to another company and yesterday opened another cash ISA with the other bank ready for them to transfer it.
I said he will have to get in touch with the new bank to cancel the new ISA.
Am i right.

Aretnap

He can open as many ISAs as he likes and he can transfer previous years' subscriptions between as many ISAs as he likes and as often as he likes.

What he cannot do is subscribe to more than one cash ISA this tax year, ie pay in new money, which was not already in an ISA. From what you say it doesn't sound like he's done this, so he's done nothing wrong.

roxy28

Aretnap wrote: »

He can open as many ISAs as he likes and he can transfer previous years' subscriptions between as many ISAs as he likes and as often as he likes.

What he cannot do is subscribe to more than one cash ISA this tax year, ie pay in new money, which was not already in an ISA. From what you say it doesn't sound like he's done this, so he's done nothing wrong.

Thanks for the reply.
Thats right no new money has been added at all this tax year to the cash ISA, so opening more than 1 cash ISA in the same tax year is ok, so long as new money only goes in to one of them, and a transfer of previous years money does not count as new money?

Archi_Bald

roxy28 wrote: »

so opening more than 1 cash ISA in the same tax year is ok, so long as new money only goes in to one of them, and a transfer of previous years money does not count as new money?

yes that's right

roxy28

Archi_Bald wrote: »

yes that's right

Ok thanks.
It was just that i kept reading articles stating only 1 cash ISA per tax year can be opened, they should probably have said " only put new money in 1 cash ISA per year ".

roxy28

Just need help with the new provider online transfer form.
Where it says

Do you want to transfer the current years ISA allowance

or

Do you want to transfer the previous year allowance.

All he wants to do is transfer all his matured 2 year fixed rate ISA with no added new money. He will not be adding any new money this tax year to the cash ISA once its transfered.

badger09

roxy28 wrote: »

Just need help with the new provider online transfer form.
Where it says

Do you want to transfer the current years ISA allowance

or

Do you want to transfer the previous year allowance.

All he wants to do is transfer all his matured 2 year fixed rate ISA with no added new money. He will not be adding any new money this tax year to the cash ISA once its transfered.

That's pretty strange wording :cool:

Is there an option 'Transfer full balance' or something like that? if so, that's the one to select.

If not, then he should select 'Previous years'.

roxy28

badger09 wrote: »

That's pretty strange wording :cool:

Is there an option 'Transfer full balance' or something like that? if so, that's the one to select.

If not, then he should select 'Previous years'.

Yes there was a mention of full, he went with the 2nd option of previous year allowance so if its wrong i am sure he will soon find out.

Krash420

Id like to clarify that you can open more than one ISA and put money into them, as long as when you open the second (and subsequent ones) you transfer the full balance of this years contributions into them.

In short, you can only have one 'ACTIVE' ISA, where active is defined as opened in current year with money paid in for current year.

As such, youre free to open a second ISA and have money transfered from previous years into that, but as long as you dont pay into it, youre not going agsinst the rules of ISA's.

Archi_Bald

Krash420 wrote: »

In short, you can only have one 'ACTIVE' ISA, where active is defined as opened in current year with money paid in for current year.

'ACTIVE' is anything you paid money into in the current financial year, regardless of opening date.