NEW ISA Rule 2024

financehelp23

Hi, can you save with multiple providers of 2024/25 Cahs ISA? For example. You save 5000 with one bank cash ISA and save another 15000 with another bank cahs ISA. Both added same or less than 20000 limit. I think HMRC allows save same type ISA with different providers from 2024? Thanks 

eskbanker

The short answer is yes, the revised rules allow this.

However, as covered on numerous threads, some institutions haven't yet updated their systems and declarations, so will suggest that you can't....

financehelp23

eskbanker said:

The short answer is yes, the revised rules allow this.

However, as covered on numerous threads, some institutions haven't yet updated their systems and declarations, so will suggest that you can't....

I see, yes I opened one and deposit small amount and now I regret to use them. I am thinking just leave that samll amlount there and open another one and pay the remianing amount Seems more make sense rather than contact them and wait them to close. 

eskbanker

financehelp23 said:

eskbanker said:

The short answer is yes, the revised rules allow this.

However, as covered on numerous threads, some institutions haven't yet updated their systems and declarations, so will suggest that you can't....

I see, yes I opened one and deposit small amount and now I regret to use them. I am thinking just leave that samll amlount there and open another one and pay the remianing amount Seems more make sense rather than contact them and wait them to close. 

You could always open a new one and transfer the existing one into it, which would avoid wasting some of your annual allowance, if that's relevant to you - if you invoke the new provider's ISA transfer process then it all just happens automatically with no need to deal with the old provider at all.

Reed_Richards

Also, if you open an ISA with an amount of money then close it again by withdrawing that money then strictly you have used that part of your ISA allowance.  So if that small amount was £200 then the maximum amount you can deposit in ISAs elsewhere this tax year becomes £19,800.  I'm not sure how the new rules apply if that old account was a flexible ISA.  

masonic

Reed_Richards said:

I'm not sure how the new rules apply if that old account was a flexible ISA.  

Money flexibly withdrawn from a current year ISA could always be replaced in any valid ISA. That now includes a different cash ISA.

Reed_Richards

Would it still count as a flexible withdrawal if you withdrew all the money and closed the account?  Or would you have to leave the account open with a zero balance?

slinger2

Reed_Richards said:

Would it still count as a flexible withdrawal if you withdrew all the money and closed the account?  Or would you have to leave the account open with a zero balance?

A minor problem you might have is that when you close the account there will be interest added (I'm assuming). If you subscribe £10,000 and then close the flexi account (same tax year), receiving £10,100 (say) your net contributions for that account will be £0, so you can then put the £10k into another ISA. However the interest can only go back where it came from, otherwise it's lost from the ISA system, but you've closed the account.

jimjames

Reed_Richards said:

Would it still count as a flexible withdrawal if you withdrew all the money and closed the account?  Or would you have to leave the account open with a zero balance?

It still counts as flexible and can be repaid into any other ISA

masonic

As @slinger2 says above, only the current year subscription can be replaced in another ISA without consuming additional allowance, not any interest earned on it.

masonic

Due to HMRC changing its guidance on 30th April, it is no longer possible to flexibly withdraw money from one ISA to replace in another, so the discussion above about flexible ISAs is out of date and cannot be done any more.