Opening a second cash isa before April

brummieaxgt

Hi,

I am newish to ISA rules and wondering if someone can help me.

I opened an isa in 2022 fixed for one year at my full allowance of 20k. It matured in Oct 2023.
I transferred the full amount including the interest which i thing was around 20.8k at the time into a fixed cash isa with another provider.

I would like to open another cash isa before the April 23-24 cut off. Can i open another cash ISA now as my existing one was a only a transfer?

Or do i need to have another type of ISA?
Id prefer to stay away from stocks ISA's if possible and utilise my full allowance again this year in another fixed ISA before the April cut off for 23-24.
I could wait till April but would like to use this year and next years allowances.

Any help is appreciated.

eskbanker

brummieaxgt said:

I opened an isa in 2022 fixed for one year at my full allowance of 20k. It matured in Oct 2023.
I transferred the full amount including the interest which i thing was around 20.8k at the time into a fixed cash isa with another provider.

I would like to open another cash isa before the April 23-24 cut off. Can i open another cash ISA now as my existing one was a only a transfer?

Yes, as long as the transfer was handled via the receiving provider's ISA transfer process.

Martyn_H

With respect, I'm not sure I understand the relevance of eskbanker's reply.

If you haven't used your £20,000 ISA allowance for this tax year, then you're free to open a new one with any provider you like. You could additionally also transfer in the proceeds from your existing ISA if the new provider allows it.

The rules for ISAs are changing in the new tax year, so Google what the changes will be.
https://moneytothemasses.com/news/the-isa-changes-announced-in-the-autumn-statement-2023
Interest rates are predicted to fall soon as inflation has dropped, so you may wish to act now before providers reduce their rates.

steveksullivan

Martyn_H said:

With respect, I'm not sure I understand the relevance of eskbanker's reply.

If you haven't used your £20,000 ISA allowance for this tax year, then you're free to open a new one with any provider you like. You could additionally also transfer in the proceeds from your existing ISA if the new provider allows it.

The rules for ISAs are changing in the new tax year, so Google what the changes will be.
https://moneytothemasses.com/news/the-isa-changes-announced-in-the-autumn-statement-2023
Interest rates are predicted to fall soon as inflation has dropped, so you may wish to act now before providers reduce their rates.

The relevance of Eskbankers reply was that in order to be still classed as 'old money' the transfer had to be handled by the new provider.

If the OP took the money out of the ISA him/herself to 'transfer' to the new provider it would have counted against his/her annual allowance.

Martyn_H

Although it wasn't made clear, I assumed the OP used the proper procedure for transferring an ISA thus preserving the fund's tax free status, otherwise I agree with your statement.

eskbanker

Martyn_H said:

Although it wasn't made clear, I assumed the OP used the proper procedure for transferring an ISA thus preserving the fund's tax free status, otherwise I agree with your statement.

I assumed that too, but, as you accept, it wasn't explicitly stated, so my post was simply intended to convey that use of the proper ISA transfer procedure was a prerequisite for OP being able to do what they wanted.

brummieaxgt

Thanks for all your responses.
yes my original transfer was handled by the bank for the incoming amount.

exactly as said, I’d like to lock a deal in now using my allowance this year.

then I can do the same again when the rules change in April.

thanks for your help