ISA 17/18 tax year

Guys,

I just checked my existing ISA (Which pays a paltry interest @ Natwest) and realised I last invested in it in April.

Does this mean I am ok to open a new ISA as i've not invested in one this year?
Additionally can I also transfer my existing one?

I am looking at opening a LISA cash ISA at Skipton and chucking the year maximum in there to get the bonus.

Would I also be allowed to open a H2B ISA elsewhere and transfer all of my current Natwest ISA into it?

I assume already i wouldn't be eligible for both bonuses for this tax year though if I have it right that you only get the bonus if you put into the H2B and not just transfer from elsewhere?

Cheers, from a confused saver !

Comments

  • jimjames
    jimjames Posts: 17,498
    Photogenic Name Dropper First Anniversary First Post
    Forumite
    It depends when in April as the month covers 2 tax years so you need to look at the exact date.

    I wouldn't bother with a cash ISA other than the HTB/LISA when you can do so much better for cash savings elsewhere. There are other threads about the rules for them that may give the answers you're looking for
    Remember the saying: if it looks too good to be true it almost certainly is.
  • 1Foz
    1Foz Posts: 74 Forumite
    Damn, it was the 24th and the tax year started on the 6th. Looks like I need to wait 4 months then. Really annoying. Cheers.
  • eskbanker
    eskbanker Posts: 29,932
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    No you don't need to wait until the next tax year, because NatWest are one of the providers who support the split ISA model, allowing you to pay into multiple cash ISAs with them in the same tax year, as clarified at https://personal.natwest.com/personal/savings/isa-overview/help-to-buy-isa.html:
    Save in both a NatWest cash ISA and a NatWest Help to Buy: ISA in the same tax year providing between the two accounts you do not exceed the overall ISA allowance (£20,000 for 2017/2018). E.g. if you save £2,000 in you Help to Buy:ISA, the maximum you can save in your regular cash ISA is £18,000
    So, you can open a HTB ISA with NatWest this tax year, but you can only put £200 per month into it, plus £1,000 in the first month, even if transferring from another ISA, so if your existing cash ISA has more than this in it then you'd have to drip-feed the HTB.

    You can also open a Skipton LISA as well, because this is a different type of ISA which can be funded in parallel with paying into cash ISAs (including HTB). You can pay up to £4K into a LISA this tax year and your total contribution across all ISAs can't exceed £20K in any given tax year.

    However, you can only earn the 25% government bonus for a first time property purchase from either a LISA or an HTB ISA but not both....
  • If you really need to hold this in cash, you will almost certainly do better outside the ISA wrapper even if the sum if high enough to be taxable.

    Straight forward cash ISAs are not worth bothering with.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.2K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards