Cocked up? Or not?

Bingaling86

I had a cash ISA with Nationwide for 3 years, which was paying dreadful interest rates. So, this year I decided to transfer my existing e-ISA into a 'Save to Buy ISA' instead and have been paying in the minimum of £50 savings per month for the last 3 months.

Does the fact that I transferred one ISA into another mean I can't then transfer it into (or close it and then open) a Help To Buy ISA come December - or will I have to wait until the next tax year (Apr 2016)?

Thanks.

Linton

Bingaling86 wrote: »

I had a cash ISA with Nationwide for 3 years, which was paying dreadful interest rates. So, this year I decided to transfer my existing e-ISA into a 'Save to Buy ISA' instead and have been paying in the minimum of £50 savings per month for the last 3 months.

Does the fact that I transferred one ISA into another mean I can't then transfer it into (or close it and then open) a Help To Buy ISA come December - or will I have to wait until the next tax year (Apr 2016)?

Thanks.

If you did a proper transfer by getting the recieving provider to do a transfer-in rather than you moving the money yourself then the transferred money retains its original date and doesnt affect this years allowance.

ajdj

Unfortunately though you've contributed £50 for the last 3 months. This means you won't also be able to contribute to a Help To Buy ISA in December as all contributions from 15/16 tax year have to be kept together. In order to do this you would need to either-

A) withdraw funds from the ISA and close that account (losing tax free status) or
Transfer the balance to a S&S ISA

Alternaively just keep the cash ISA for this year and open a Help To Buy ISA in April. It really depends on when you think you will want to buy a property. If it's not for some time just wait until April.

Bingaling86

Linton wrote: »

If you did a proper transfer by getting the recieving provider to do a transfer-in rather than you moving the money yourself then the transferred money retains its original date and doesnt affect this years allowance.

As far as I'm aware, Nationwide consolidated my e-ISA into a Save to Buy ISA - they used the terms 'transfer' and 'consolidate' rather than 'open and close'.....

The only reason I transferred my accounts was because I thought transferring (consolidating?) wouldn't affect my eligibility for a Help to Buy ISA this year. I'll be annoyed if I have to wait until April to get the Help to Buy ISA

Thanks

Bingaling86

ajdj wrote: »

Unfortunately though you've contributed £50 for the last 3 months. This means you won't also be able to contribute to a Help To Buy ISA in December as all contributions from 15/16 tax year have to be kept together. In order to do this you would need to either-

A) withdraw funds from the ISA and close that account (losing tax free status) or
Transfer the balance to a S&S ISA

Alternaively just keep the cash ISA for this year and open a Help To Buy ISA in April. It really depends on when you think you will want to buy a property. If it's not for some time just wait until April.

What's an 'S&S ISA'?

thanks

Eco_Miser

"Stocks and Shares ISA".

However Nationwide interpret the 'one ISA' rule differently from most ISA providers, so you may be able to keep your existing ISA and have a Help To Buy ISA with Nationwide as well. Ask Nationwide.