ISA Query

Tulbagh

Am I right in saying that it is the time at which you deposit money into an ISA that determines the tax year and not the time at which you open the account. I would like to lock in the 5,25% Virgin ISA rate (one year) now but not dpeosit the money until after the new tax year has started (6th April). I have already used my ISA allowance for 2023-2024. Cheers

Mark_d

Yes the ISA rules are based on when you put money in, not when you open the account.  Though often you need to put money in an account at the time of opening.

ColdIron

• You can pay money into your ISA as soon as it's opened, right up until 30 days after we stop selling this account. After that you can't pay in any more money.

https://uk.virginmoney.com/savings/products/1_year_fixed_rate_cash_isa_exclusive_issue_11/#how-do-i-open-and-manage-my-account

Martyn_H

OakNorth's online application process wouldn't allow me to open a new cash ISA that has a 30 day funding window as I've already opened a cash ISA for this year. Confusingly, their help desk said I wouldn't fall foul of the ISA rules if I opened one today but delayed funding it until after 5th April. That would mean me making a false declaration.

Tulbagh

Thanks for the comments. I did phone Virgin and they said that it was the date when money is deposited that determines the tax year.

Martyn_H

Kent Reliance told me the same thing, although beware as their funding window is just 7 days.

VKE

I already have several VM accounts and recently opened: 
1: VM 1yr Fixed Cash ISA Exclusive 5.25% Issue 11 for 23/24 tax year
2: Just opened VM 1y Fixed Cash ISA Exclusive 5.25% Issue 11 for 24/25 tax year that I will fund after 5/4/24 ~ I did phone VM to just double check and was told it's when the account is funded and not the date the account was opened plus the fact that there's a longer 'top up' timeframe along with 5.25% makes it a great option.

Martyn_H

I'm waiting for OakNorth to email me on how I can apply without making a false declaration.

Ocelot

Martyn_H said:

I'm waiting for OakNorth to email me on how I can apply without making a false declaration.

Is the ISA you opened this tax year also with OakNorth, or with another provider?

Martyn_H

No, but that's irrelevant if I comply with the following:

"... as the account will not be funded until 24/25, then you can select that you do not have an ISA account in that tax year (meaning 23/24, my italics) as the account only becomes active once it has been funded." 

refluxer

Martyn_H said:

OakNorth's online application process wouldn't allow me to open a new cash ISA that has a 30 day funding window as I've already opened a cash ISA for this year. Confusingly, their help desk said I wouldn't fall foul of the ISA rules if I opened one today but delayed funding it until after 5th April. That would mean me making a false declaration.

It's perfectly acceptable to open a cash ISA now and fund it in the new tax year, regardless of whether you've already opened another with this tax year's allowance or not.

This subject of poorly-phrased wording on ISA declarations crops up quite often on here - as long as you stick to the ISA rules, you'll be fine.