If ISA old last years money invested with interest retain tax free status

gesdt50

Hi all, does an ISA from last years money invested with interest gained retain tax free status on the whole amount of £20800 if transferred into a new ISA this year only because it was fixed an now the bank is to open a new ISA as the only option they offer even though I already opened a new Isa in April for this year and want to invest 20k new money into that; would both ISA's have tax free status?

I have read T&C's on products and ISA rules however it gets very complicated so would be grateful for any help, Thanks

El_Torro

Yes, as long as you keep the money in an ISA it remains tax free, both the initial £20k and the £800 you gained in interest. It only loses its tax free status if you take it out of an ISA. Transferring it to another ISA is fine too, though not all ISA providers accept transfers in.

jimjames

The whole point of ISAs is that the money inside them is always tax free so that's why they're so worthwhile for building up long term investments. So yes it will be tax free whether it's last year's money or this years.

Angelica123

Yes, you can have as many ISAs as you like. The restriction is how much NEW money you can contribute in a single tax year. 

The important thing is that you use the ISA transfer service for your old ISA money and don't manually withdraw the money yourself. 

gesdt50

Thanks a lot everyone for the clear replys, Cheers