Cash Isa Account Question

hanifauk

Hello everyone,

I would really appreciate some advice from the knowledgeable people here in this forum.

I have cash savings that I'd like to deposit into my Cash ISA but unfortunately I've used up the full allowance for this tax year.

My mother kindly offered to open a cash ISA for me where she can keep my money for safekeeping until the next tax year, as I don't trust myself with this money in my hands.

My question is, in terms of legal aspects, is this allowed?

Regards,
Han

xylophone

Even if your mother had power of attorney enabling her to open accounts for you and in your name, she could not open another ISA for you in this tax year in your name as your allowance has already been fully used.

If you choose to give your mother a sum of money, she can open an ISA in her own name and the money is hers, legally and beneficially.

She would be under absolutely no obligation to make you a gift of the money in this account at any time, now or in the future.

El_Torro

If you trust your mother to give you the money back then this should be fine.

There are much better things you can do with your cash than put it in a Cash ISA by the way.

roxy28

xylophone wrote: »

Even if your mother had power of attorney enabling her to open accounts for you and in your name, she could not open another ISA for you in this tax year in your name as your allowance has already been fully used.

.

Can you not open more than 1 cash ISA in the same tax year. Not to add more money to it, but take advantage of a better rate with a new provider and just doing a transfer?.

colsten

roxy28 wrote: »

Can you not open more than 1 cash ISA in the same tax year. Not to add more money to it, but take advantage of a better rate with a new provider and just doing a transfer?.

yes you can, provided you ask the new provider to transfer your entire subscription for the current year

jimjames

roxy28 wrote: »

Can you not open more than 1 cash ISA in the same tax year. Not to add more money to it, but take advantage of a better rate with a new provider and just doing a transfer?.

Yes but it appears the OP has more money than will fit in a cash ISA. However as per the previous post, there are far better places to keep cash than a cash ISA when you can get 1% or so in an ISA and up to 5% outside.

roxy28

colsten wrote: »

yes you can, provided you ask the new provider to transfer your entire subscription for the current year

So if you have maxed out the ISA say by june, you could not then transfer to a new provider because you have used up the allowance for that year.

colsten

roxy28 wrote: »

So if you have maxed out the ISA say by june, you could not then transfer to a new provider because you have used up the allowance for that year.

You can transfer whether you have used some or all of your allowance

roxy28

colsten wrote: »

You can transfer whether you have used some or all of your allowance

Thanks colsten.

Always best to keep informed.