Autumn statement - ISA rule changes from April 2024

refluxer

gele said:

I have 2 cash ISAs, one that will mature in Aug 24 and one in Nov 24  but I may want to open one in April.24  I know I can do this.
With these new rules can I open one in April and pay say £4k in and then in Aug open another to transfer the maturing one with £12k in into [total £16k in 2 Isas both opened in same tax year] Then say in Oct  should I want to, open a 3rd and pay in another £4k  [total £20k of new monies this year in 3 cash ISAs ] and then transfer the maturing Nov one into a 4th [old money]
I think I will be able to do this, and it might not be the route I take, but just wanted someone to say 'yes' or 'no'

Yes - you can do what you propose in the next tax year (following the changes) but just note that, in your scenario, you'll have only used £8k from next year's tax allowance because transfers of ISAs containing subscriptions from previous tax years (in both of your maturing fixes) don't count as new subscriptions ('new money'). The fact that they might get combined in an ISA with subscriptions from the current tax year doesn't matter - those transferred funds only counted as new subscriptions in the tax year they were first paid into an ISA.

gele

Thanks. oh yes I had forgotten at the time of typing that the transfers dont count towards new money. Thanks for the reply/reminder.

Reed_Richards

Transferring an ISA from a previous tax year (or years) never had any bearing on what you can do in the current tax year and still won't in 2024.  What you decide to do with your maturing ISAs won't be relevant in 2024 and never was.  

[Deleted User]

If I have not understood this please let me know, thank you.  I have a 12 month fixed Cash ISA with Coventry Buildng Society maturing in May.  I was hoping to open the new Coventry ISA allowing about three penalty free withdrawals but I cannot pay 'new money' into a new Cash ISA this tax year.  Coventry say on line that the new limited access ISA can be opened with £1 but, am I right in thinking that I cannot open it this tax year because I already have the exisiting Cash ISA for this year?

If the £1 is a definite opening requirement I would wait until 6 April and see if this Coventry Cash ISA is still available.  I would then, in May be able to add the maturing funds from my present Cash ISA into it.

eskbanker

You're right that you can't pay £1 of new money into another cash ISA for the rest of this tax year if you've already funded a Coventry one this tax year.

[Deleted User]

Thanks very much for confirming it for me, eskbanker.