Full ISA Guide Discussion Area

easilyconfused_2

Thanks for the clarification, Baldur.

Does that mean I can transfer the £5K that will be left in my A&L ISA to another Cash ISA provider and top it up with the remainder of this year's allowance?

Or will I have to top up A&L first and then transfer it?

Baldur

easilyconfused wrote: »

Thanks for the clarification, Baldur.

Does that mean I can transfer the £5K that will be left in my A&L ISA to another Cash ISA provider and top it up with the remainder of this year's allowance?

Or will I have to top up A&L first and then transfer it?

It depends how your first transfer has been documented - normally, you (on the transfer form) and the old ISA manager have to specify the source of transferred funds to the new manager, i.e.whether the funds consist of the current tax year's funds and/or partial previous years' funds.

If the current tax year's funds are included in the £5,000 currently with A&L, yes you can top it up after transfer - if they were included in the first transfer your top up would have to be with that manager's Cash ISA.

easilyconfused_2

Thanks again, Baldur.

I will enquire about how the transfer has been documented.

Captain_Starlight

Morning All, and Happy New Year!
Question ... is it possible to split a year's Direct ISA allowance between providers? With £1000 in an NS&I Direct ISA, I'd like to put the rest of my allowance into, say, an A&L ISA ... can I do this?
If this has already been asked/answered, my apologies ...

Baldur

Captain_Starlight wrote: »

Morning All, and Happy New Year!
Question ... is it possible to split a year's Direct ISA allowance between providers? With £1000 in an NS&I Direct ISA, I'd like to put the rest of my allowance into, say, an A&L ISA ... can I do this?
If this has already been asked/answered, my apologies ...

You can only subscribe (pay new money into) to ONE Cash ISA per tax year.

(You can transfer partial previous tax year's/years' ISA funds but current tax year's funds can only be transferred whole.)

blondie27_2

I had an ISA with Halifax from a couple of years ago with approx £800 in it. I decided (wrongly) to transfer this to an ISA with Icesave in September as the interest rate was higher. The transfer went ahead and i am now currently waiting to get my money back through the FSCS.

I currently have a bit of extra money that i am thinking of putting in to an ISA/savings account. I am just wondering whether i am ok to open another ISA this tax year with having opened one already with Icesave? If so, will i still be entitled to the full £3600 to go in it as the money transferred from Halifax to Icesave was not new money this year it was from a previous year or would this have to be included in the £3600 allowance for this year with it being a new ISA account?

I hope i've made my enquiry clear. Thanks in advance.

Baldur

If you have paid no new money (i.e. in addition to the transfer) into your Halifax/Icesave ISA since 6th April, it has no relevance to this year's ISA allowance, as a transfer does not constitute 'opening a new Cash ISA', it's just a transfer from one provider to another - you can, therefore, simply open a new Cash ISA with any provider.

When you receive your Icesave ISA funds, they can be transferred into the new ISA account (assuming that it accepts transfers) or to a different provider that accepts transfers.

blondie27_2

thanks for your help. so just to clarify then - i could in fact open a new isa and place £3600 or whatever the maximum amount is in it because i have paid no money in to an isa this year i have just transferred. then when i get my money back from icesave/fscs i could just transfer it or put it in to a savings account - i guess it depends how i get it back. when i initially phone icesave to make enquiries they said that the money would go back to halifax as that was where it was transferred from but my halifax isa will now have been closed so not sure where it will go?

Baldur

blondie27 wrote: »

thanks for your help. so just to clarify then - i could in fact open a new isa and place £3600 or whatever the maximum amount is in it because i have paid no money in to an isa this year i have just transferred. then when i get my money back from icesave/fscs i could just transfer it or put it in to a savings account...

Yes.

If you are looking long term, I'd suggest getting your Icesave funds back into an ISA account before April 5th 2009, in order to maintain their ongoing tax-free status.

blondie27_2

Baldur wrote: »

Yes.

If you are looking long term, I'd suggest getting your Icesave funds back into an ISA account before April 5th 2009, in order to maintain their ongoing tax-free status.

Hi Baldur, thanks for your guidance on this. When i get the money back from my Icesave ISA could this in effect be transferred/put in to another ISA as it's money from a previous year and i could also open another ISA classed as new money/ISA this year and put £3600 in it? Am i understanding this correctly?