Query re: when a fixed term ISA (opened and matured in different tax years) counts

AllGrownUpWithSavings

Hi all,

I opened a 1 year fixed cash ISA in Sept 23 (23/24 tax year) depositing the full £20k allowance at account opening. 

It matured in Sept 24 (24/25 tax year) with £1,500 interest and the ISA account had to be closed. I gave instructions to transfer the full amount (£21,150) to a new cash ISA with the same bank. 

Sorry if this has been asked before but... as the fixed ISA and deposit was done in 23/24 tax year, but it didn't mature until 24/25, does that mean I the £20k saved in 23/24 counts for 45/25 so I can't save anything else this year?

OR

Does the £20k not count in 24/25 as it was saved in 23/24 but the £1,500 counts as "new money" so when all of it was transferred to the other cash ISA on it's maturity, I only have £18,500 left to save in 24/25 tax year?

OR

Doesn't the timing of the maturity matter and because the full amount was transferred into another ISA (so didnt lose any tax-free status) I still have the full £20k allowance left to deposit in 24/25? 

I tried calling my bank to ask who were very unhelpful and then called HMRC who said they didn't understand my question. I just don't want to save an additional £20k in the ISA if I've reached the limit. 

Any help gratefully received. Many thanks. 

Albermarle

AllGrownUpWithSavings said:

Hi all,

I opened a 1 year fixed cash ISA in Sept 23 (23/24 tax year) depositing the full £20k allowance at account opening. 

It matured in Sept 24 (24/25 tax year) with £1,500 interest and the ISA account had to be closed. I gave instructions to transfer the full amount (£21,150) to a new cash ISA with the same bank. 

Sorry if this has been asked before ( yes many times, probably a good idea to have a look through the forum as it can be informative)  but... as the fixed ISA and deposit was done in 23/24 tax year, but it didn't mature until 24/25, does that mean I the £20k saved in 23/24 counts for 45/25 so I can't save anything else this year? No the £20K limit only applies to new money added to an ISA in that tax year.

OR

Does the £20k not count in 24/25 as it was saved in 23/24 but the £1,500 counts as "new money" so when all of it was transferred to the other cash ISA on it's maturity, I only have £18,500 left to save in 24/25 tax year?
No, any interest earned does not count as new money

OR

Doesn't the timing of the maturity matter it does not and because the full amount was transferred into another ISA (so didnt lose any tax-free status) I still have the full £20k allowance left to deposit in 24/25? Correct

I tried calling my bank to ask who were very unhelpful and then called HMRC who said they didn't understand my question. I just don't want to save an additional £20k in the ISA if I've reached the limit. 

Any help gratefully received. Many thanks. 

Answers in bold.