Clarity over Cash ISA

cookster

I deposited 20k in a cash ISA last year and made approx. 1k interest.
I noticed that when I login to my account it states I have another 20k "remaining" to invest.

I assume this is because of the new tax year.

If I deposited it another 20k this tax year will the interest on the 41k be tax free? 

FrugaiMacDugal

Each tax year runs from  6th April to 5th April, you get £20k ISA allowance each tax year, though rumours are that could be reduced, look here

All interest in an ISA is tax free. have a read here. 

cookster

Thanks, I'm aware of the rumours about reductions with the push to get more people to switch to stocks & shares.

So, just to clarify I can add an additional 20k each tax year, as it stands and any previous 20k investments plus accrued interest are tax free. 

FrugaiMacDugal

Correct.

Remember if you decide to switch to a new provider, say to get a better interest rate, you must get new provider to do the switch, you can't just take the money out and transfer or you will lose ISA status.

cookster

Perfect, thanks for the clarity.