Advice with Savings

thevoid69

Hi, I started an ISA in May and have maxed that  out. 
In April next year, can I keep the same ISA account or transfer it to a different company as well as open another ISA and not pay tax on that too?

From what I've read, it's important to transfer the 25/26 ISA to keep that years allowance, is that right?

I have enough funds to max out another ISA right now, but obviously I can't open another, so can anyone recommend where to put it to earn maximum potential? It's currently in a savings account where the high interest at 4.4% ends in Oct, so I need to know where I could put it, or potentially look at a different type of savings account?

Thanks

masonic

Yes and Yes

For the money you cannot pay in yet, you may wish to consult this list https://forums.moneysavingexpert.com/discussion/comment/79538594/#Comment_79538594

FrugaiMacDugal

thevoid69 said:

From what I've read, it's important to transfer the 25/26 ISA to keep that years allowance, is that right?

Yes, but to transfer you must get new provider to initiate the transfer to maintain ISA status.

Mark_d

thevoid69 said:

Hi, I started an ISA in May and have maxed that  out. 
In April next year, can I keep the same ISA account or transfer it to a different company as well as open another ISA and not pay tax on that too?

From what I've read, it's important to transfer the 25/26 ISA to keep that years allowance, is that right?

I have enough funds to max out another ISA right now, but obviously I can't open another, so can anyone recommend where to put it to earn maximum potential? It's currently in a savings account where the high interest at 4.4% ends in Oct, so I need to know where I could put it, or potentially look at a different type of savings account?

Thanks

You don't need to transfer your 25/26 ISA to keep the allowance.  The interest you earn (assuming cash) will always be tax free.

For the best earning potential, the wealth needs to be invested in stocks & shares/funds.  For this reason I use my ISA allowance each year for an S&S ISA.

friolento

Mark_d said:

For the best earning potential, the wealth needs to be invested in stocks & shares/funds.  For this reason I use my ISA allowance each year for an S&S ISA.

This is only the best recommendation if no access is required for the next 5-7 years minimum. There could be many good reasons why people go for cash ISAs.

Eco_Miser

thevoid69 said:

Hi, I started an ISA in May and have maxed that  out. 
In April next year, can I keep the same ISA account or transfer it to a different company as well as open another ISA and not pay tax on that too?

From what I've read, it's important to transfer the 25/26 ISA to keep that years allowance, is that right?

You can add (currently) £20k new money to ISAs each tax year.

Once money is in an ISA, it is free of UK income and capital gains taxes until you take it out of the ISA system. So you can leave the money where it is, or transfer it to a better ISA account, either keeps the allowance.  What you shouldn't do is withdraw from an ISA to your normal account, then pay it into another ISA - this loses the allowance. (But if you won't be otherwise using the  current year's allowance, it will be quicker this way).

See also new rules on current year's subscriptions in flexible ISAs,

If the ISA is 'flexible' you can withdraw money, and pay it back in during the same tax year and keep the allowance. 

Any interest it earns while not in an ISA is taxable.

jimjames

thevoid69 said:

From what I've read, it's important to transfer the 25/26 ISA to keep that years allowance, is that right?

It might just be your wording but there is no need to transfer the ISA just to keep the allowance. The allowance remains regardless but you may want to transfer at some point to get a better rate. That can be done at any time, you don't have to wait until the end of the tax year. There is a dedicated ISA subforum that you might find useful.
https://forums.moneysavingexpert.com/categories/isas-tax-free-savings