Full ISA Guide Discussion Area

Baldur

blondie27 wrote: »

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?

Yes, that's correct.

carolemc

I've jusy opened an ISA for myself with £3600 and will hopefully be able to save another of the same in the next tax year, but i would also like to start one for my teenage daughter for uni in a few years time. Am I allowed to open one in her name and add to it as well as my own? As it is in her name, does she have her own tax free allowance?
Any advice would be appeciated.

Lokolo

Technically you can't add money but it is possible. Its her ISA - hence the individual bit in ISA

If you use bank transfer or cheque you could most probably deposit money though.

As long as she is 16 she can open one in here name thats fine. You may not be able to go into the bank and say you want to open it in her name, she may have to do it. But I am sure if you have all her details (inc National Insurance) you can most probably do it online without problems.

She has her own allowance yes.

Hanco

Hi ...

Just opened A&L ISA online. Got accepted by email then post.

Reading the postal detail, the declaration includes this:

"I have not subscribed and will not subscribe to another Cash ISA in the same tax year that I subscribe to this Cash ISA"

Does "Subscribe" mean "make regular deposits? Or does it mean "Open an ISA"?

Thing is, I opened a Barclays one this year after April. And I have one from 2007/8 Tax Year also. I was thinking of moving my old one (on a poor rate) to the new A&L ISA account - that was the point of opening it. The Barclays one does not accept transfers in.

So given the declaration above, would you say I cannot move from my old account (as a transfer) to A&L? I was under the impression that a "Transfer" does not affect annual allowances.

Confused!

Lokolo

Yes you can do that.

Subscribe means 'put new money in', i.e. deposit money.

If you wish to transfer Barclays ISA to A&L ISA you must fill in an ISA transfer form with A&L but must not deposit any money yourself, even if its a BACS transfer from Barclays ISA. You must just fill in the form and let the banks sort it.

wise_old_owl_3

Having established that my 34k savings are actually losings (thank you Martin) I need to re-invest. Never done ISAs before, but if I put £3600 in an ISA in my name and £3600 in one in my wife's name the interest on both is tax free (I think!). In April I can do the same again (I think!) Can I put the rest in an ISA? Should I? or should I select a savings account that isn't a losings account?

JimmyTheWig

wise_old_owl wrote: »

Having established that my 34k savings are actually losings (thank you Martin) I need to re-invest. Never done ISAs before, but if I put £3600 in an ISA in my name and £3600 in one in my wife's name the interest on both is tax free (I think!).

Correct.

In April I can do the same again (I think!)

Correct again.

Can I put the rest in an ISA? Should I? or should I select a savings account that isn't a losings account?

To put more into a cash ISA would mean waiting until April 2010 for another set of allowances.
To put some into a stocks and shares ISA is really a matter for you to decide. This would be an investment on the stock market and, as I'm sure you've heard, can go up as well as down. If you did this 6 months ago you would have lost lots of money. Whether to do this or not depends on your attitude to risk (i.e. would it be ok if you lost some or all of this investment money) and when you need the money (the markets are volatile and are best used as long-term investments, e.g. 5-10+ years).

Alternatively, yes, go for a best-buy savings account. You may want to consider a fixed-rate account where you can't touch the money for a year but generally get a better (and guaranteed) rate of interest.

damianw

Hi,

The guide states under the first example that once someone has invested their max in shares ISA, "He may sell the whole investment, or part of it, at any time without losing the tax benefits, but no more may be bought inside that year's ISA wrapper.". Post 96 in this thread appears to contradict this.

Could someone clarify this for me please and if needed, would it be possible to make the guide a little clearer?

My personal situation is that I have maxed out this year's Cash and Shares ISAs and would like to sell some of the shares and use the money to buy different ones, but before I do, I would like confirmation that I can keep the proceeds of the sale inside the ISA.

Thanks.

RayWolfe

Yes you can. We people with S&S ISAs do it all the time.

Scunge

damianw wrote: »

I would like confirmation that I can keep the proceeds of the sale inside the ISA.

More than that, if you want to use the proceeds of the share sale to buy more shares within the ISA, and you've maxed out your allowance, you must keep the cash inside the S&S ISA - if you don't and you withdraw the cash out of the ISA, you won't be able to put it back in again!