ISA Interest paid into another ISA
Advice on a theory if I may. I have already used this years 2023 isa allocation. I have a fixed rate Cash ISA. Which due to the 85k limit and faff reducing the balance I do not want to add to. To retain the interest free status of the interest payment. Could I change my interest instruction so that instead of adding it to the same Isa I change it to deposit/ transfer the interest into a flexible cash isa with another provider? Or would that be classified as contributing to my isa as the other provider would see it as a deposit and wouldn’t have a means to identify it as an interest payment. As I know if I transfer to a normal account it will be taxable once it touches the normal account. And if I subsequently transferred it to another isa it would breach the rules for this year.
I looked around in the search, but couldn’t get a clear answer.
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