Allowance rules

aodpbarny

I have £20000 in a fixed rate ISA that ends in July 2024.
If the rate drops dramatically and I want to move that to a new ISA, I presume that is my £20000 allowance for the year 2024 or does it not count as its ISA to ISA - and I therefore have another potential £20000 allowance?? 

masonic

If you use the provider's ISA transfer process then it will not affect your 2024/25 allowance.

slinger2

If you "transfer" the ISA to another provider you won't use any allowance.

eskbanker

aodpbarny said:

I have £20000 in a fixed rate ISA that ends in July 2024.
If the rate drops dramatically and I want to move that to a new ISA, I presume that is my £20000 allowance for the year 2024 or does it not count as its ISA to ISA - and I therefore have another potential £20000 allowance?? 

As above, transfers don't count towards your annual contribution allowance, but apart from anything else, you'll have more than £20K in July, once the interest has been added!

Beddie

does it not count as its ISA to ISA - and I therefore have another potential £20000 allowance? Yes!

Open a new ISA and as part of the process they will ask do you want to transfer an existing one. Fill in the details and they take care of it. You can actually do that before yours expires, because there's an option to only move the existing ISA once the tie-in period ends.

And yes, you still have all of this year's allowance to use too.