Cash ISA allowance question.

johng_uk

Hi folks and sorry if this has been posted previous!

I know the cash ISA allowance is £3000 and £3600 in the 2008/09 tax year.

The question that I have relates specifically to ISA transfers. My wife has £3k in a Britannia Mini Cash ISA and the rate has fallen to 4.8% added yearly. The interest is added on the 1st working day after 5th April.

Now as 4.8% is not a competative rate (especially when not added monthly) I wish to transfer it to a different ISA. We have £3600 ready to fill up an ISA for her in the '08/09 tax year anyway, Does an ISA transfer use up the next years allowance or can you effictively 'double-up' your new and old ISA allowance?

TVM in advance

John

debbie42

johng_uk wrote: »

Does an ISA transfer use up the next years allowance or can you effictively 'double-up' your new and old ISA allowance?

It doesn't affect your allowances whatsoever, as long as you ensure that you do transfer it, and not just close down the old ISA.

TaxGeek

The transfer won't affect the 08/09 allowance, so she'll still have the full £3,600.

As an aside, I assume you have already used your own allowance for 07/08?

johng_uk

Thanks guys!

I have used both my allowances yes. Just a quickie: Does the transfer have to take place before, after or at same time as opening the new ISA?

Thanks again!

John

debbie42

johng_uk wrote: »

Does the transfer have to take place before, after or at same time as opening the new ISA?

It depends who you are transferring to. Some providers won't accept any transfers in at all. Others are more flexible. I'm not sure how you'd transfer it before you opened the new one though?!

johng_uk

Lol yeah good point - Well presented!!

Taxi for one!