Help with cash ISA!

CW91

I am really confused about the tax free allowance and was hoping for some advice.

I currently have around

£19,000 in a cash ISA and £1000 in another cash ISA (Both from previous years) so if I consolidate into a new ISA this tax year does this mean I will be taxed as the interest I will get, will take me over the £20,000 allowance. I am so confused and don't want to get in trouble with a tax bill. Please help! 

refluxer

Interest earned within an ISA doesn't count towards the annual £20k ISA allowance and ISAs which contain subscriptions from previous tax years don't count towards this year's allowance either, when transferred.

So, provided you haven't paid anything into either ISA since 6th April this year, you're free to do what you like with them and you'll still have £20k from this year's allowance remaining.

The £20k ISA allowance isn't a limit on the amount you can hold within an ISA - it's the total amount of new subscriptions you can pay into an ISA (or ISAs) during each tax year.

CW91

refluxer said:

Interest earned within an ISA doesn't count towards the annual £20k ISA allowance and ISAs which contain subscriptions from previous tax years don't count towards this year's allowance either, when transferred.

So, provided you haven't paid anything into either ISA since 6th April this year, you're free to do what you like with them and you'll still have £20k from this year's allowance remaining.

The £20k ISA allowance isn't a limit on the amount you can hold within an ISA - it's the total amount of new subscriptions you can pay into an ISA (or ISAs) during each tax year.

Thank for for your very detailed and helpful advice. 😊