Guidance required on inter year ISA tax allowances

kevi51

Hi All.

I need some guidance/knowledge on inter year ISA transfers please. I have never had enough savings that would put me over the £1000 tax free personal savings allowance. However this will change next year when i expect a decent amount that will change this. I propose to put roughly 15k into a flexible cash ISA before the end of this financial year.

Then when i get the extra funds next year i will put 20k into another ISA

My questions are about how this affects future tax free allowances.

I understand that i will have a 15k tax free allowance to take forward in respect of year 25/26. After i open the 26/27 ISA with a new 20k, can i transfer the 15k into the new ISA and effectively have 35k tax free. . And continue doing this for the following years . Or do i need to keep each years tax free amounts in separate accounts.

question 2.

Re. the 15k allowance from 25/26. If during the year of the ISA i need to withdraw some of it for whatever reason do i keep the 15k tax free allowance going forward at the end of the year of do i have to replace the balance at some point before transferring it.

hope this makes sense.

Kev

maman

A quick answer to your first question is Yes, you can keep rolling forward your allowance year on year. So from your example you'd have up to £35K in the next year.

As for the second question, it will depend on the Ts & Cs of your provider as not all allow withdrawals during the year.

Similarly, not all providers allow transfers in so you need to be sure the product you choose fits your needs.

lr1277

I am sorry I got confused by some of your dates and assertions. I think you mention getting £15k later this year. But then talk about putting £15k into an ISA in the 25/26 tax year.

Sorry if you know this, but the 25/26 tax year ends on 5th April 2026. That is 12 days away. Will you have the £15k to put in by then? And if you do, please remember the few days before 5/4/26 are Easter so ideally you should have funded any ISA by 1/4/26. Though at least one building society has said the money has to be in the account by Saturday the 4th. But then some building societies don't deal with incoming money till the next working day, which would be the 7/4/26 and then in the 26/27 tax year.

If you do fund and open an ISA in the 25/26 tax year with ABC building society that is fine. For the 26/27 contribution, you can either add to the account with ABC building society or you can open and fund a new account with DEF building society. If DEF building society is paying a better rate than ABC building society, then you can ask DEF building society to transfer in money from ABC building society. Be careful though not all accounts accept transfer in. Also some transfers are done electronically so can happen in hours or days. Other building societies use paper forms for the transfer so can take upto 3 weeks.

maman

@kevi51 says he has £15K to put into an ISA now and the other £20K to come later in the year.

Be sure to keep some savings out of the ISAs @kevi51 for emergencies.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81936029#Comment_81936029

Why? ISAs are a great place for emergency money.

lr1277

https://forums.moneysavingexpert.com/discussion/6661129/guidance-required-on-inter-year-isa-tax-allowances

I can't partially quote a post but in the 1st paragraph he says he has very little to save currently. Then next year either in the 26/27 tax year of the 27/28 tax year he will get a sum of money to save.

Then he will get more funds next year such that he can put 20k into an ISA.

As I said, I found that confusing.

At no point did I read he has £15k now to put into an ISA.

You may have read the post differently.

maman

https://forums.moneysavingexpert.com/discussion/comment/81936034#Comment_81936034

That would only work if he has a product that lets him take money out if needed, not all do. That's why I suggested he chooses a product that meets his needs.

kevi51

Thanks for replies so far. To answer a few queries to make things clearer.

I do have the 15k to put in now - it is currently in a normal savings account that is giving a higher return than any ISA available - and as i wont be getting more than a £1000 interest then no tax payable this year.

I do appreciate that time is of the essence with this as the deadline is fast approaching.

I am looking at an account that allows easy access, so 'emergency money' is covered.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81936126#Comment_81936126

But that's got nothing to do with an ISA or not - you can get fixed term products outside of an ISA wrapper as well, and in fact ISAs also have extra flexibility in that you can always close them before maturity if you need for an emergency, even if what's inside them is a fixed term product.

Newbie_John

https://forums.moneysavingexpert.com/discussion/comment/81936140#Comment_81936140

Could you name the place and rate? Trading 212 ISA gives you 4.68% .. not sure if there are any savings accounts for £15k that are better?