ISA INTEREST

Chrisbdh

In 23/24 tax year I deposited £25000 into an ISA account and it made £1400 interest. I transferred the total £26400to another ISA account in December 2024. My question is: Can I still put £20000 into an ISA before this tax year ends, or can I only deposit £18600 because £1400 interest is already classed as a deposit for this year? 

eskbanker

Interest earned within an ISA doesn't affect the annual contribution limit, so you can still pay in up to £20K.

You couldn't have deposited £25K as new money into an ISA in 23/24 though, given that limit, so presumably meant that at least some of that was a transfer from another ISA?

kimwp

How did you deposit £25,000 into an ISA when the annual limit is 20k?

When you transferred the £26400, which mechanism did you use? Did you withdraw the money and put it in the new account? Or request an ISA transfer from your new provider?

perizadah

That’s the benefit of an ISA - returns are tax free  the limit is £20k ‘new’ money per year