Using allowance THEN transferring

phill79

Just a quicky:

Assuming I have the money ready to go into my ISA on the first day of the 08/09 season, can I then transfer it to another ISA provider later in the year (Not adding any money, just a full transfer)?
Or is it a case of once you have used your allowance up, you are stuck there for the rest of the year?

Thanks

debbie42

You can transfer it in the same year as you open it. The current rules do say you need to transfer the whole amount if opened in the same year.

phill79

My brain doesn't seem to be working today so I'm a little confused.
I will clarify:

Existing NS&I ISA limit used for 07/08
Will move full amount to NS&I on April 6th

Can I then open a new ISA later in the year and transfer the NS&I ISA to it?

Thanks

PBA

phill79 wrote: »

My brain doesn't seem to be working today so I'm a little confused.
I will clarify:

Existing NS&I ISA limit used for 07/08
Will move full amount to NS&I on April 6th

Can I then open a new ISA later in the year and transfer the NS&I ISA to it?

Thanks

Yes, but you have to transfer the full amount you've paid in (ie you can't pay £3600 into your NS&I ISA in April, but then transfer £1000 of it somewhere else later in the year, it has to be the full £3600 + interest).

King_Weasel

So the rule about only being allowed one cash ISA provider in any year only applies to the current year? By using transfers, ISAs from previous years can be split among as many providers as you like (subject only to the providers' own rules)?

debbie42

King_Weasel wrote: »

So the rule about only being allowed one cash ISA provider in any year only applies to the current year? By using transfers, ISAs from previous years can be split among as many providers as you like (subject only to the providers' own rules)?

You are only allowed to open one new cash ISA in any on tax year. You can transfer existing ISAs to new providers though. This includes any new ones opened during the current tax year. So you could open a new one with, say, Barclays in May, fund it with £3600, then transfer the cash to another provider in July (as long as the second one allowed transfers in, of course).

<edited to say: as long as Barclays had actually opened the ISA by then, of course :rolleyes:>

The only difference between transferring old ones and current ones is that, if you transfer the current tax years ISA, you have to transfer the whole amount. This doesn't apply to previous years, with the current rules.

Lokolo

debbie42 wrote: »

You are only allowed to open one new cash ISA in any on tax year.

You worded your first sentence slightly wrong. You can open as many ISAs as you want, but you can only contribute to one. So I could open 10 ISAs with £0 in the open another and put £3600 in.

scoot65

Hiya, I need a little clarification,

I have anniversary ISA with YBS, the anniversary month being October. I cannot add to this ISA, or transfer until the anniversary month, October.

Question 1: Can I open a new ISA with another provider in April, and not max it out and then in October transfer from YBS to the new provider (T&Cs willing) and then continue to add cash into the new ISA up to the max even after any transfer?

Question 2: Another scenario. If I wished, could I at a later date, transfer from the 'new' provider to yet another provider?

I hope I've made myself clear!

Many thanks......

Mikeyorks

scoot65 wrote: »

I cannot add to this ISA

On the assumption (see quote) you don't add further funds after Apr 08 :

Question 1 ......Yes, you can do that.
Question 2 .......You can do that also.

scoot65

Mikeyorks wrote: »

On the assumption (see quote) you don't add further funds after Apr 08 :

Question 1 ......Yes, you can do that.
Question 2 .......You can do that also.

Thanks for the info. Much appreciated!