Full ISA Guide Discussion Area

RayWolfe

If anyone here knew the answer to that they would be rich beyond their wildest dreams and thus: not be here.
Just remember the value of share can rise as well as fall ... or should that be the other way round?

Finance_Matters

Hi there,

Can anybody help me with an answer to this question - I currently have a cash ISA from last year with £3000 in it. I have not yet opened up a cash ISA for this year. However the current interest rate on my previous years ISA has dropped to 3.9%. If I transfer this money into a new cash ISA with a better interest rate, will this count as my allowance for this tax year or would I still be able to open up a new cash ISA with an allowance of £3600 as well?

Thanks to anyone who can help me.

Finance Matters

Baldur

Finance_Matters wrote: »

......would I still be able to open up a new cash ISA with an allowance of £3600 as well?

Yes, you would.

Scunge

I have some questions about how exactly running a Shares ISA works.

What I'm interested in is what happens as I sell and buy shares regarding the £7,200 limit.

Suppose I invest £5,000 in a Shares ISA in company A and they rise to £6,000 (yes, I know they can fall as well as rise). Now, I decide that company B is better and sell the shares in company A, keeping the resulting cash inside the ISA. Can I use that £6,000 to buy shares in company B, or can I only use £2,200 (£5,000 initial investment + £2,200, making £7,200 allowance) and have to take the remaining £3,800 out of the ISA?

If it is the former, does that then mean that I can sell and buy shares in as many companies as I like, as often as I like, and still have that £2,200 left of my allowance to add more cash in later in this tax year if I wanted to?

So now, if that is the case, what happens if the value of the shares exceeds £7,200, even though I invested £5,000 initially? Do I have to sell some shares to keep the balance at £7,200 or less, or can I just keep selling and buying with whatever happens to be the balance of that ISA at that time?

So that would mean that if I make really good predictions (hah!) I could, in theory, end up with a Shares ISA with £25,000 value of shares in, all ok because my starting investment was less than £7,200?

Now, when I get to next tax year, does that tax year change stop me selling and buying shares in this year's ISA, or could I continue to use that £25,000 as a pot to carry on trading within that ISA, until I decide to close it?

FInally, when I finally close this year's ISA in a few years with £75,000 worth of shares in (HAH!), as I read it that will be free from capital gains tax. So if there any reason why I should not then just get the full £75,000?

cheerfulcat

Hi, Scunge,

The £7200 limit applies to the original investment. It can grow free of capital gains tax within the ISA and you can realise profits and re-invest them to your heart's content. If you decide to close the ISA and take the money out there is no capital gains tax to pay on encashment.

triplea35

On a self select stocks & shares ISA are the dividends received taxable if they are reinvested in the ISA.
I have read the article but only found some reference to tax on bonds being recoverable.
Can anyone explain
Thanks

The_Grim_Reaper

I have already used up this years Cash ISA quota, placing £3600 with the Bradford & Bingley (6.25%AER fixed).

I have three old ISA's from years past with different banks, earning currently from 3.85% - 4.25% rate of interest. The total amount held in these accounts is around the £8000 mark. I would like to earn a little more if possible, and it seems there are some better deals to be had. The NatWest (5.94%AER) for one and the Scottish Widows (6.0%AER) for another, at least at this moment in time.

Question is; Am I allowed [by the rules and by the banks] to open another ISA account with one of the above banks this year (now), and transfer the old money into it. That's opening an ISA with a £0 cash investment and then moving old ISA's into it?

Baldur

The_Grim_Reaper wrote: »

Am I allowed [by the rules and by the banks] to open another ISA account with one of the above banks this year (now), and transfer the old money into it. That's opening an ISA with a £0 cash investment and then moving old ISA's into it?

Transferring isn't 'opening' a new ISA, just select your new ISA provider (ensuring that they accept inward transfers), complete their transfer form(s) and they will organise the transfers - they must initiate the transfers, not you.

The_Grim_Reaper

Baldur wrote: »

Transferring isn't 'opening' a new ISA

Thanks for clearing that up for me Baldur and so quickly! :T
I've been reading all day (on and off) about ISA's trying to find a definitive answer with no luck.

soundmary

Hi,
Can anyone help me with this?
I have two Cash ISAs from different years, one old, one current. Both now pay very low rates of interest. I would like to transfer them into one of the better paying accounts. Can I transfer both to the same account?
Thanks
Mary