ISA maturity options

Mjsmithuwe

So yes I’m asking a question that comes up in a lot of forum questions but I still find answers confusing so I’ll put my situation out there and see what advice comes back.

i have an USA maturing this month from investing in the previous financial year.

I have already opened and used all allowance for this financial year when it comes to ISA.

The provider states it will
just roll onto an easy access cash USA if I choose not to instruct it to do other things. And I know this is all fine re tax etc.

The other option they are offering us a nice 5% one year fixed term isa.

My question is can I open this ISA without tax implications?

Farway

Mjsmithuwe said:

So yes I’m asking a question that comes up in a lot of forum questions but I still find answers confusing so I’ll put my situation out there and see what advice comes back.

i have an USA maturing this month from investing in the previous financial year.

I have already opened and used all allowance for this financial year when it comes to ISA.

The provider states it will
just roll onto an easy access cash USA if I choose not to instruct it to do other things. And I know this is all fine re tax etc.

The other option they are offering us a nice 5% one year fixed term isa.

My question is can I open this ISA without tax implications?

Quick answer, yes. Providing you use the option given by the current ISA provider, just complete the form & let them do it, don't withdraw the money or attempt it yourself.

upamountain

Yes - reinvesting a previous year’s ISA is fine so long as it stays in the ISA envelope 

Freddie16

I have a similar query - I have a fixed rate ISA set up 2 years ago. Matures 24/3/25. I haven't made any transfers in during the 2 years except of course interest has been added. I have already used the max allowance in this tax year 2024/25. Can I simply ask provider to open new ISA when it matures before end of this tax year or even transfer to new provider?

eskbanker

Freddie16 said:

I have a similar query - I have a fixed rate ISA set up 2 years ago. Matures 24/3/25. I haven't made any transfers in during the 2 years except of course interest has been added. I have already used the max allowance in this tax year 2024/25. Can I simply ask provider to open new ISA when it matures before end of this tax year or even transfer to new provider?

Yes, as long as you use the receiving provider's ISA transfer process, it doesn't affect, and isn't affected by, your current year contribution allowance.

slinger2

Yes. There's no "new" money involved here. Make sure you do a proper "transfer" if moving to a new provider so that the money stays within the ISA system.

soulsaver

@Mjsmithuwe

Who is offering a 5.0% one year fixed ISA?