Moving ISA

niklis

jem16 wrote: »

What we are trying to tell you is that if you transfer the ISA you currently have to another, better paying provider, you do not use up next year's allowance by doing so. So for example;

ISA 07/08 = £3000
ISA 08/09 = £3600 ( allowance has gone up)

So a total of £6600 plus interest is possible.

With your way you plan to close ISA 07/08 and use the proceeds to open ISA 08/09. This way you have used up £3000 of next year's £3600 allowance so you can only put in another £600.

So a total of £3600 plus interest is possible.

You are basically throwing away the total allowance that you could have by closing instead of transferring.

Hiowever if you feel that you are not going to have another £3600 to put into an ISA and will remain on £3000 then I suppose it doesn't matter.

An ISA is a yearly allowance that you can add to each tax year. A lot of people have over £30,000 sheltered in tax-free ISAs.

@ jem16: Many thanks for the explanation, now I think that I understood it. I did not know the allowance may be added over the years.
If I close an exstining ISA account, I loose all the added allowances from the previous years. If I would decide to open a new Mini ISA, I would start again with 3000 GBP (or soon with 3600 GBP).

There is just one thing, I do not understand in your example:

With your way you plan to close ISA 07/08 and use the proceeds to open ISA 08/09. This way you have used up £3000 of next year's £3600 allowance so you can only put in another £600.

Why would I loose the 3000 GBP in the tax year 08/09? If I close the ISA in the tax year 07/08, than it would be susbtracted from my allowance... fair enough.
I think that the allowance is restore to orignial value (3600 GBP) at the first tax of the new tax year. Why would the closure in 07/08 effect the allowance from 08/09 and let me end up with 600 GBP?

Mikeyorks

niklis wrote: »

Why would I loose the 3000 GBP in the tax year 08/09? If I close the ISA in the tax year 07/08, than it would be susbtracted from my allowance... fair enough.
I think that the allowance is restore to orignial value (3600 GBP) at the first tax of the new tax year. Why would the closure in 07/08 effect the allowance from 08/09 and let me end up with 600 GBP?

You don't really lose £3000 of the allowance. The point Jem is making is that you are using existing ISA funds for £3000 of your 08-09 £3600 allowance. So you had £3000 in an ISA ..... you still have £3000 in an ISA .... but you've now cut the balance of your 08-09 allowance down to £600. Simply because of the way you're doing it?

If you transferred the £3000 to an ISA that accepted transfers ... you would have £3000 in an ISA .....BUT, you would still have the whole of the £3600 allowance available to you?

However ... if you're not intending to add to the £3000 - then it doesn't really matter. But if you wanted to add more than £600 to the £3000 - before 5th Apr 09 - you can't do so, if you do it the way you're suggesting.

RoyH_2

How many Isas can you transfer e.g.

04/05 3000
05/06 3000
06/07 3000
07/08 NIL

Is ther anyway I can transfer all these to a new (higher rate) Isa currently being offered and who would that be. I am prepared to accept fixed rate over say three years.

jem16

RoyH wrote: »

How many Isas can you transfer e.g.

04/05 3000
05/06 3000
06/07 3000
07/08 NIL

Is ther anyway I can transfer all these to a new (higher rate) Isa currently being offered and who would that be. I am prepared to accept fixed rate over say three years.

Yes you can - pick one of the providers who will accept transfers in.

http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1