ISA Help/Advice - New tax year.

DeeCas

Hi all,

First of all, I'm sorry if I have posted this in the wrong section.

I have tried doing some googling but I can't seem to figure this out - So I'm reaching out to some experts to advise me and I would be really grateful.

Last year in November I opened my first ISA and deposited my full £20,000 allowance into here. This money is "spare" cash that I do not need urgent access to, hence why I decided to go for an ISA.

Obviously it has earnt interest since November and is now above that £20k limit. With the new tax year and £20k allowance coming up I can't seem to figure out what I should do!

Do I just leave the whole lot there, including the interest that has been earnt or will this cause problems as it's over the allowance limit?

Do I "Withdraw" just the interest to keep it below the allowance?

Do I withdraw the full lot and setup a new ISA for the new tax year?

Thanks in advance :)

MSE_ForumTeam5

We've moved your post to the ISA section

Woodstok2000

Once your money is in an ISA, it and also any interest it earns, remains protected until you withdraw it. You can only deposit 20k per year but there's no limit on interest earnings within the ISA.

You can certainly leave everything there, or you can move it to another ISA if there are better interest rates around. If youre moving your money, open the new ISA and complete a transfer request - do not withdraw the money as, youll use up your ISA deposit allowance when redepositing to the new account.

Ocelot

The 20k limit only applies to new money, not existing money held within an ISA.

Every tax year you can put 20k into an ISA (although the limit for cash ISAs is being reduced to 12k in 26/27) without your existing holdings making any difference to the limit.

Some people have hundreds of thousands of pounds in ISAs, cash or otherwise, built up over previous years, all protected from tax.

Ayr_Rage

Same question keeps coming up every few days!

The only current limit is £20,000 of new subscriptions every tax year.

"Old" funds can be moved at will.

However, not all providers offer the same rate for new money v transfers in.

Do your research.

DeeCas

Thank you all for the answers. I got myself in a bit of a tizz trying to work it out but it's now pretty dam simple!

I can just leave it where it is and top it up over the year.

flaneurs_lobster

I can just leave it where it is and top it up over the year.

You can certainly leave it where it is, topping it up may be possible, depends on what kind you have.

What ISA have you opened, maybe give the name from a recent statement or online?

DeeCas

https://forums.moneysavingexpert.com/discussion/comment/81938090#Comment_81938090

It's a Money box ISA if that helps.

steveksullivan

https://forums.moneysavingexpert.com/discussion/comment/81938198#Comment_81938198

It all depends on the Ts and Cs of your particular ISA. If its a fixed rate ISA its very unlikely you will be able to top it up as most have a funding 'window' for deposits which is generally upto 30 days - easy to open a new ISA for your new funds though ….

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81938198#Comment_81938198

Let's assume that you mean Moneybox's Cash ISA.

Yes you can add additional funds to that particular ISA in the new tax year if you wish.

Be aware that other ISA products will be available and may offer better rates when you are ready to save more.

You can hold as many ISA's as you wish.

DeeCas

https://forums.moneysavingexpert.com/discussion/comment/81938230#Comment_81938230

Thank you and everyone for the advice.

It is a Cash ISA and I will keep my eye out for a y better ones cropping up.