Transfer Cash ISAs Discussion Area

rulerofuniverse

Hi

Just wondering if anyone else has any thoughts on my question?

Re-worded version:
Do you think it is better to setup a 2013/2014 ISA (setting up the transfer in to take place on 6th April) now (e.g. with the Santander 2.5% deal) OR to wait until 6th April to see what new deals there are (e.g. to see what Santander is offering then as it will be changing, judging by the cut off date for applications on the existing one**).

In summary (over clarifying or what?!), is the best easy access ISA rate of 2.5% likely to improve in the new tax year's deals or decrease? I don't know if and how the budget etc. will impact it.

I won't hold you to it but would like some more thoughts please!


** - Also, on a side note, the Santander site actually says about it being for 2012/2013 ISAs so I'm not even sure if I can set it up now to begin on 6th April. Maybe I can't? I know in the past I have setup a new ISA (arranging for a transfer to take place) in advance of 6th April but that was with Nationwide.

badger09

rulerofuniverse wrote: »

Hi

Just wondering if anyone else has any thoughts on my question?

Re-worded version:
Do you think it is better to setup a 2013/2014 ISA (setting up the transfer in to take place on 6th April) now (e.g. with the Santander 2.5% deal) OR to wait until 6th April to see what new deals there are (e.g. to see what Santander is offering then as it will be changing, judging by the cut off date for applications on the existing one**).

In summary (over clarifying or what?!), is the best easy access ISA rate of 2.5% likely to improve in the new tax year's deals or decrease? I don't know if and how the budget etc. will impact it.

I won't hold you to it but would like some more thoughts please!


** - Also, on a side note, the Santander site actually says about it being for 2012/2013 ISAs so I'm not even sure if I can set it up now to begin on 6th April. Maybe I can't? I know in the past I have setup a new ISA (arranging for a transfer to take place) in advance of 6th April but that was with Nationwide.

As far as I'm aware, most (Cash) ISA providers don't allow you to set up a new ISA now to start on 6th April.

However, most instant access ISAs set up now for either 2012/13 subscriptions or transfers in (and by this I mean transfer through proper process of existing ISA) will allow you to pay in 2013/14 subscription on or after 6th April. I think your use of the term 'transfer in' might be causing confusion. Do you mean transfer an existing ISA, using the correct transfer process - or simply paying money in from another non ISA account?

As for whether there will any better rates around - who knows? I would have thought most of the big players would have advertised their best rates by now, but we can live in hope

MrHeathcliff

I know that sounds like a stupid question.

However, the terminology used by providers regarding TRANSFERRING an ISA to them is that first you have to OPEN an ISA with them, then do the formal ISA transfer into the new account from the existing provider.

So, my question is does "opening" that new account constitute opening a new ISA for that tax year? (ie, you can't do it if you have already opened another ISA in the same tax year)

I want to transfer an ISA opened this tax year (2012-13) into a new ISA then top up this year's allowance (the existing ISA is fixed-rate and won't let me make any more contributions for 2012-13).

Thanks for advice

10_66

MrHeathcliff wrote: »

...So, my question is does "opening" that new account constitute opening a new ISA for that tax year? (ie, you can't do it if you have already opened another ISA in the same tax year)

I want to transfer an ISA opened this tax year (2012-13) into a new ISA then top up this year's allowance (the existing ISA is fixed-rate and won't let me make any more contributions for 2012-13)...

You can open as many ISAs in the current tax year as you like AS LONG as you only subscribe to one of them, so for example if you've already opened one in this current tax year and subscribed to it, you can open another one with a nil balance (if the provider permits a nil balance). You can not subscribe to two different ones at the same time in the current tax year (ie split the current year's subscription between two different providers), but you can transfer an existing one elsewhere.

ryath

10_66 wrote: »

You can open as many ISAs in the current tax year as you like AS LONG as you only subscribe to one of them, so for example if you've already opened one in this current tax year and subscribed to it, you can open another one with a nil balance (if the provider permits a nil balance). You can not subscribe to two different ones at the same time in the current tax year (ie split the current year's subscription between two different providers), but you can transfer an existing one elsewhere.

If I have subscribed to an ISA in 2012/13 (an ISA which also has subscriptions from other tax years) and apply for a new ISA today with zero balance, then send an external transfer form which probably won't be actioned until after 6th April, would I not fall foul of the rule which is something like this:

"If you do not pay into your ISA during a Tax Year and want to pay in a following Tax
Year, you will need to make a new application before we can accept your further
payment. This is a requirement of the ISA Regulations".

What is the definition of 'pay in' here - new money? I thought that you could transfer an instant access Cash ISA with current and past tax year subscriptions whenever you like (for example to get a better rate).

MrHeathcliff

ryath wrote: »

If I have subscribed to an ISA in 2012/13 (an ISA which also has subscriptions from other tax years) and apply for a new ISA today with zero balance, then send an external transfer form which probably won't be actioned until after 6th April, would I not fall foul of the rule which is something like this:

"If you do not pay into your ISA during a Tax Year and want to pay in a following Tax
Year, you will need to make a new application before we can accept your further
payment. This is a requirement of the ISA Regulations".

What is the definition of 'pay in' here - new money? I thought that you could transfer an instant access Cash ISA with current and past tax year subscriptions whenever you like (for example to get a better rate).

I think that as long as the transfer is initiated before the end of the current tax year, it'll be credited for that tax year (even if the transfer is not completed until the following tax year).

The following is what it says, regarding this point, on page 118 of the HMRC Guidance Notes for Managers

11.18c
Where an ISA transfer straddles the end of a tax year:

the ISA is included in the new manager’s Annual Returns if the transfer date is 5 April (or earlier)
 the ISA is included in the old manager’s Annual Returns if the transfer date is 6 April (or later)
For Example
Investor B subscribes £2,000 to a cash ISA with Manager X in May 2012. In late March 2013 he decides to transfer the ISA (in full) to a cash ISA with Manager Y. He also wishes to make a further subscription of £3,000 with Manager Y before the end of the 2012-13 tax year. The two managers agree a date of transfer of 31 March 2013 and the investor makes a subscription of £3,000 with Manager B on 1 April 2013. Manager Y receives the Transfer History Form information (or equivalent) as well as the transfer proceeds on 15 April 2013 (during tax year 2013-14).
Although the transfer didn’t complete until the tax year 2013-14, the agreed transfer date was 31 March 2012 (during tax year 2012-13); the new ISA manager (Manager Y) must therefore report full details of the subscription made to the ISA in the 2012-13 tax year (£5,000 - £3,000 subscribed directly by the investor plus the £2,000 current tax year subscription transferred). Manager X should not include the ISA, or the £2,000 subscriptions up to the date of transfer on its Annual Return of Information for the tax year 2012-13 (Chapter 14).
In addition, Manager Y should include the £5,000 current year subscriptions in its Annual Return of Statistical Information (subscriptions) for the tax year 2012-13 (Chapters 16) and the market value of the ISA in its Annual Return of Statistical Information (market value) for the tax year 2012-13 (Chapter 15).

10_66

ryath wrote: »

What is the definition of 'pay in' here - new money? I thought that you could transfer an instant access Cash ISA with current and past tax year subscriptions whenever you like (for example to get a better rate).

You can transfer ISAs at any time (proving their terms and conditions permit). You must just keep the current year's subscriptions with one provider, whereas with previous years' ISAs you can split them up with different providers if you wish.

savinghard4family

Having trouble with my sums and could do with some help please!

I have about £19k in my current ISA. My 3.1% deal runs out on 31 Oct 2013 and will then drop to a pathetic 1%.

I can't work out if it is worth leaving the money in this ISA and paying in next year's allowance too, or if I should transfer the lot to one of the best deals currently available that will get me through the next tax year at a lower % (eg. 2.25%). I guess a third option is to just start a new ISA for next year's savings and leave the £19k where it is.

Any advice gratefully received!

Cheers.

boobbby

savinghard4family wrote: »

Having trouble with my sums and could do with some help please!

I have about £19k in my current ISA. My 3.1% deal runs out on 31 Oct 2013 and will then drop to a pathetic 1%.

I can't work out if it is worth leaving the money in this ISA and paying in next year's allowance too, or if I should transfer the lot to one of the best deals currently available that will get me through the next tax year at a lower % (eg. 2.25%). I guess a third option is to just start a new ISA for next year's savings and leave the £19k where it is.

Any advice gratefully received!

Cheers.

I would have thought that if you could pay this years allowance into your 3.1% then that would have been the best bet. On the other hand because rates keep falling then maybe you should start a Santander direct 2.5% ISA with this years allowance and then transfer in the £19000 on the 31st october if a better deal is not available.

lolly1963

Hi,I have the Santander fixed cash isa which is due to expire. I notice when i went to open up the new Direct Cash Isa it says that you cannot use that form to transfer in an existing Santander Isa. How do i transfer my Santander fixed into the Direct please? Can i open up the new one without funding it and transfer it in after?
Confused.com
Thanks.