ISA rules have changed Discussion

RayWolfe

gorcol wrote: »

I currently have a cash ISA and a toisa.As my toisa will now become a cash ISA I will have 2 cash ISA's.Is this ok as long as I don't add money to one of them?

That's correct. You can have as many ISAs as you have years of subscription. As you say, you may only add new funds to one of them.

isasmurf

gorcol wrote: »

I currently have a cash ISA and a toisa.As my toisa will now become a cash ISA I will have 2 cash ISA's.Is this ok as long as I don't add money to one of them?

[pedantic mode on]
Well actually, you already have 2 cash ISAs. As the Tax Incentivised Savings Association says, there has been no such thing as a TOISA since April 2005.
[pedantic mode off]

Gemmzie

Do I have to tell my current ISA provider that I am opening a new ISA to pay into for 2008/09? Or can it just sit there? (It'll only have about £200 in it from this year, is it worth moving that, I can't save £3.6k in a year!)

As the "mini" ISA is going, do you now have to be 18 for an ISA? As I could only find mini ISAs for 16-18 year olds.

King_Weasel

isasmurf wrote: »

[pedantic mode on]
Well actually, you already have 2 cash ISAs. As the Tax Incentivised Savings Association says, there has been no such thing as a TOISA since April 2005.
[pedantic mode off]

Can I nominate this for this month's most unhelpful reply to a genuine enquiry?

Gorcol, the change of status of your TOISA, pedantic or not, is irrelevant. In ISAWorld every tax year is separate. You can't add to any ISA, TOISA, TESSA or PEP opened in any earlier tax year. And of course you can only add to ISAs in the present tax year up to the limit (which increases next year).

Now the Tax Incensivised Association will be after me, but I don't care.

garymcox

I'm new to all this, I have some money from redundancy and want to put it away in tax free savings. I was thinking about a Cash ISA each for me and the wife @ £3000 each. Then two more after April 6th @ £3600 each. Reading this thread it looks like one ISA per person per year. Can I also use the over £9000 transfer with Lloyds TSB and/or would this be better than the above? ?

thanks

english-setter

I've put this on another thread but am still not sure what to do. Can anyone help please?

I have a fixed rate ISA (lump sum put in, just interest being added) and a Cash ISA with Legal & General from about 5 yrs ago, into which I have been paying monthly (to pay off interest only mtge). I have just had a letter from L&G saying that my Cash ISA will automatically be changed to a stocks and shares ISA. Having read this thread it seems the L&G Cash ISA must be a Maxi otherwise they couldn't change it to a S&S ISA (does this sound right?).

I also have an old Fixed Anniversary ISA with Yorkshire BS which I opened in Nov 2004. Having read the messages it seems that you can only have one Cash ISA open into which you are putting funds. I didn't know this - I thought, as long as you didn't exceed your limit, you could put your ISA saving anywhere. I put money into the Yorkshire BS ISA every year until 2007, but none this year. Am I in trouble because of the L&G ISAs? (I would not have exceeded the total amount allowed just, potentially, the number of providers.)

Or am I OK with one Mini and one Maxi Cash ISA?

If I've done something wrong, what do I do?!?!? Eeeeeeek...

thanks

King_Weasel

garymcox wrote: »

I'm new to all this, I have some money from redundancy and want to put it away in tax free savings. I was thinking about a Cash ISA each for me and the wife @ £3000 each. Then two more after April 6th @ £3600 each. Reading this thread it looks like one ISA per person per year.

Assuming you want savings rather than investment (riskier) that is exactly what you should do.

As for the Lloyds deal, you need at least £6000 in ISAs either in your name or your wife's, or you won't have the £9000 minimum.

molit

Hi

I think I am about to ask the stupidest quetion ever seen on these boards, but I cant find a definite answer anywhere else, so here goes:

Does the principle of mini isas still exist next tax year (I know they've been renamed) so that you can put 3600 into a cash isa with one provider, and up to 3600 into a stocks and shares isa with a different provider?

Sorry for the dumb question, but the way things are being sold at the moment, I'm confused

noh

Yes you could put £3600 in a Cash ISA and £3600 in a Share ISA. You could put £10 in a Cash ISA and £7190 into a Share ISA
The total contributions must not exceed £7200 the contributions to the cash ISA must not exceed £3600.
http://www.hmrc.gov.uk/isa/rule-change-april08.htm

Nigel

stphnstevey

Q. I have transferred part/all of my current year cash subscription to a stocks and shares ISA, can I make any further payments to my ISA this tax year?

A. Yes – provided you haven’t already used up your annual ISA investment allowance of £7,200.
When you transfer your current year cash ISA to a stocks and shares ISA it is as if that cash ISA had never existed. Any money you saved up to the date of transfer will be treated as if you had invested that money directly to the stocks and shares ISA.
For example, if you had saved £2,000 in a cash ISA and then transferred it to a stocks and shares ISA you would be able to make further investments totalling £5,200 in the year. You can either invest all of the £5,200 in a stocks and shares ISA or you could save up to £3,600 in a cash ISA or a combination of both.
Q. How do I transfer the money in my cash ISA to a stocks and shares ISA?

A. Exactly the same way as you would transfer your ISA to another provider.
You will need to select the stocks and shares ISA provider that you want to have your ISA with. This can be your existing provider if they offer a stocks and shares ISA, or you can appoint a new provider.
You then ask the new provider to arrange the transfer.
You must not withdraw the money and invest it in your stocks and shares ISA yourself, as it will count against your annual ISA investment allowance.
Q. Can I transfer the monies I have invested in my stocks and shares ISA to a cash ISA?

A. No. The ISA rules are being changed to allow the transfer of monies saved in a cash ISA to a stocks and shares ISA but not vice versa.
Q. Can I still transfer my cash or stocks and shares ISA held with one provider to another provider?

A. Yes. The rules on transferring like-for-like ISAs between providers are not changing.
For example, you can still transfer your cash ISA held with one provider to a different cash ISA provider, without affecting your annual ISA investment allowance.
You must ask the new cash ISA provider to arrange the transfer.
You must not withdraw the money and invest it in your cash ISA yourself, as it will count against your annual ISA investment allowance.

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I read this then if next tax year I transfer £7,200 cash Isa to S&S ISA, thats my years limit used up? Is that correct?