CASH ISAs

dosh1

Hi

I have invested the max £20,000 cash isa allowance for 2023/24.

I have other ISAs from previous years that are maturing end of this month.

I am right in thinking that I cannot reinvest this as a cash isa until the new year commences from 6th April so therefore I lose the ISA entitlement for this money?

Thanks 

Dazed_and_C0nfused

dosh1 said:

Hi

I have invested the max £20,000 cash isa allowance for 2023/24.

I have other ISAs from previous years that are maturing end of this month.

I am right in thinking that I cannot reinvest this as a cash isa until the new year commences from 6th April so therefore I lose the ISA entitlement for this money?

Thanks 

No, you are confusing adding new money and existing ISA funds.

xylophone

I am right in thinking that I cannot reinvest this as a cash isa until the new year commences from 6th April so therefore I lose the ISA entitlement for this money?

No, you are not right.

Presumably you have received maturity options from those providers.

If you do not want to take up any of the options involving staying with those providers, contact  provider (s) of your choice to arrange 

 transfer in from the existing accounts to the new provider(s).

dosh1

Apologies if I am misunderstanding but if I have already used up my £20,000 allowance for 2023/24 and I cannot transfer in any existing ISA's.
SO
The current provider of the ISA that is maturing has offered other ISAs but it is unclear if I have to setup the ISA just with existing ISA funds or if I have to setup with new funds and then transfer in existing funds?

refluxer

dosh1 said:

Apologies if I am misunderstanding but if I have already used up my £20,000 allowance for 2023/24 and I cannot transfer in any existing ISA's.
SO
The current provider of the ISA that is maturing has offered other ISAs but it is unclear if I have to setup the ISA just with existing ISA funds or if I have to setup with new funds and then transfer in existing funds?

You're free to transfer your maturing cash ISA into another cash ISA because transfers of ISAs containing subscriptions from previous tax years don't count towards the current tax year's ISA allowance.

You'll be able to transfer the balance into any other cash ISA (either with the same provider or a different one), as long as the provider accepts transfers-in. You'll be able to fund it solely with a transfer - there won't be a requirement to also add new subscriptions. To do this, you would usually open the new ISA and then arrange the transfer using the new provider's ISA transfer process (don't withdraw or move the money yourself). If you're wanting to stay with your current provider and do an internal transfer, then the process might be outlined in the maturity instructions for the current ISA.

JAC222

The answer to dosh1's question seems clear to me and normally I would not need to add my own enquiry to this thread because it seems to have been answered. Unfortunately I have been using ChatGPT and separately Gab's own Ai to ask it about UK ISAs and it answered in a way that to me explains why dosh1 was uncertain. Here is what Gab's Ai said to me (Chat GPT just got confused), I paraphrase:
Gab Ai:: 'when you "transfer" your holdings from one ISA account to a new one, say £15000, this will count towards your £20k allowance for saving new money. This means you can only save £5k of new money for the year you did the transfer".
Me: This means surely that when opening a 5yr Cash ISAs and saving the maximum £20k (ISA Allowance) and doing the same for each year for 5 years I can only save a maximum of £100k, because after this, if I wish to start transferring my slowly maturing ISAs at £20k per year, this £20k will use up my ISA allowance for year-6 etc. and thus I will no longer be able to add new money. Is that right or have I misunderstood?
Gab Ai: 'That is correct .........'

ChatGPT and Gab Ai are usually great and offer most of the time accurate information, but when it came to UK ISAs ChatGPT started to state nonsense and contradict itself, Gab Ai on the other hand stuck to it's guns and stated the above.

Question1: So am I correct that Gab Ai is completely wrong and I could conceivably have accumulated, say, £180k of funds in an ISA/ISAs, and when the ISA/ISAs reach maturity I can transfer them to another new ISA/ISAs in the same year as contributing another £20k of new money (my annual ISA Allowance) to that same new ISA/ISAs?
Question2: Is it possible those used to be the ISA rules from years ago and so these Ai's are not keeping up-to-date? 

eskbanker

JAC222 said:

Question1: So am I correct that Gab Ai is completely wrong and I could conceivably have accumulated, say, £180k of funds in an ISA/ISAs, and when the ISA/ISAs reach maturity I can transfer them to another new ISA/ISAs in the same year as contributing another £20k of new money (my annual ISA Allowance) to that same new ISA/ISAs?

Yes.

JAC222 said:

Question2: Is it possible those used to be the ISA rules from years ago and so these Ai's are not keeping up-to-date? 

No.

IMHO it's a complete waste of time trying to rely on AI for information that's readily sourced from definitive sources elsewhere....