Partial Transfer out and replacing funds

dcs34

eskbanker said:

dcs34 said:

My understanding of what you're describing would be:

Year 1: ISA 1 [£20k]    ISA 2 [£0k - not yet opened]

Year 2: ISA 1 [£10k]   ISA 2 [£10k]

You've moved £10k from ISA 1 to ISA 2 using the official ISA transfer process, so to my mind that isn't new ISA money but moving previous year's deposits about.

Therefore you still have your £20k ISA allowance and could put £10k into each of the ISAs.

Happy to be corrected!

OP has already used their current year allowance:

isabelissimo said:

I know 20k per tax year is the maximum new money that can be paid in (I have done this for this year)

Ah OK, yes true. Would my workings be correct if they'd deposited £20k last year, and not yet done it this year?

eskbanker

dcs34 said:

eskbanker said:

dcs34 said:

My understanding of what you're describing would be:

Year 1: ISA 1 [£20k]    ISA 2 [£0k - not yet opened]

Year 2: ISA 1 [£10k]   ISA 2 [£10k]

You've moved £10k from ISA 1 to ISA 2 using the official ISA transfer process, so to my mind that isn't new ISA money but moving previous year's deposits about.

Therefore you still have your £20k ISA allowance and could put £10k into each of the ISAs.

Happy to be corrected!

OP has already used their current year allowance:

isabelissimo said:

I know 20k per tax year is the maximum new money that can be paid in (I have done this for this year)

Ah OK, yes true. Would my workings be correct if they'd deposited £20k last year, and not yet done it this year?

Effectively, yes, in that transfers don't affect options for current year contributions.