cash isa

spokesy

every year we are allowed £20,000 tax free. what happens at the end of a year and the interest rate is not competitive and i transfer that isa to another company, will that be classed as  my tax free allowance for the new year or will i be able to invest another £20,000 and have tax free allowance on that ?

Ayr_Rage

You are allowed £20,000 of new money every tax year.

Old ISAs that are transferred do not count.

FrugaiMacDugal

You can transfer plus interest, but you must get new provider to initiate transfer to maintain tax free status, and add another £20k.

Edit,

How to transfer an ISA

Transferring an old ISA is a technical process – it's not just like switching a normal savings account. Yet as long as you abide by the golden ISA transfers rule, it should go smoothly.

If you want to transfer, never withdraw money from a cash ISA! You'll immediately lose all the lasting tax benefits.

Instead, speak to the new provider and fill in an ISA transfer form. Your new provider should then sort it all out, including moving the money over for you – keeping your ISA cash permanently tax-free.

Albermarle

spokesy said:

every year we are allowed £20,000 tax free. what happens at the end of a year and the interest rate is not competitive and i transfer that isa to another company, will that be classed as  my tax free allowance for the new year or will i be able to invest another £20,000 and have tax free allowance on that ?

Suggest you spend some time reading through the forum as all these types of questions are asked and answered regularly.