Full ISA Guide Discussion Area

Baldur

Marandy wrote: »

I am considering moving to another EU country but will rent out my property in the UK. Can I still hold my Isa's and can I invest new money in an Isa? I will still be paying UK tax but will not be resident here?

As fullstop says. See the HMRC's advice in full on their ISA leaflet.

Moving abroad

You can only subscribe to an ISA if you are resident and ordinarily resident in the UK for tax purposes. Overseas residents are not eligible to apply for an ISA. If you are unsure about this, call our Centre for Non-Residents on

• 0845 070 0040 (UK) or
• 44 151 210 2222 (from abroad).

If you cease to be a UK resident while you already have an ISA open, you will no longer be able to put money into it. However, you will still be able to keep your ISA open and you will still be entitled to the tax benefits on investments held in the ISA. If you then return to be UK resident and ordinarily resident, you can start putting money in again.

Romano10

I'm a bit behind and only got around to opening my first cash ISA in December 2008. Now I've confused myself because obviously that ISA runs until Dec 2009 but I'm wondering if I should have taken another one out in April 2009 as well?

As I took it out in Dec 2008 - would this ISA count as my 2008-2009 allowance - and could I take another ISA out now as my 2009-2010 allowance? Or is it better to wait until the first one finishes and just transfer it and add my 2009-2010 allowance to the original ISA.

If I did keep the first one running as it is and opened another one now - would this be allowed or would that be classed as having two running at once, as obviously they overlap slightly? I just don't want to miss a year somehow if it's possible to open one now rather than waiting til the current one ends and I'm not sure if you're meant to judge this by April to April or by when your current ISA ends.

I hope this makes more sense to someone than it does to me : )

Many thanks

Bunny

Baldur

BunnyHankers wrote: »

I'm a bit behind and only got around to opening my first cash ISA in December 2008. Now I've confused myself because obviously that ISA runs until Dec 2009 but I'm wondering if I should have taken another one out in April 2009 as well?

It only runs until December 2009 if it involve a fixed period, most easy access ISAs don't have a specific term and just carry on 'ad infinitum' (or at least for as long as the ISA scheme lasts), although often dropping in rate after the first year or so - so you need to keep an eye on them.

Yes, you could have opened your 2009/10 ISA from 6th April and deposited up to £3,600 of new money into it. You could also do so now, if you wish.

As I took it out in Dec 2008 - would this ISA count as my 2008-2009 allowance Yes

and could I take another ISA out now as my 2009-2010 allowance? Yes

Or is it better to wait until the first one finishes and just transfer it and add my 2009-2010 allowance to the original ISA. If you wait, you are losing potential tax-free interest until December - probably better to open one now and transfer the old one to it on maturity (assuming that it has a maturity date)

If I did keep the first one running as it is and opened another one now - would this be allowed or would that be classed as having two running at once, as obviously they overlap slightly? I just don't want to miss a year somehow if it's possible to open one now rather than waiting til the current one ends and I'm not sure if you're meant to judge this by April to April or by when your current ISA ends.

The rule is that you can subscribe (pay new money into) to one Cash ISA per tax year, how many previous tax year ISA accounts that you have running is irrelevant.

Romano10

Thanks Baldur. My ISA is a one year fixed rate one so will mature in December. So can I open up a new one now and just transfer my other one into the same ISA when it matures - I didn't know you could do that and thought it was like a fixed term bond where you can only deposit money into it at the beginning.

I'll do that then - one other question - is there a way of getting my original ISA transferred to my new one when it matures (the old one) without me losing interest or the money going back into my normal account? I can't remember but I think I may have asked for the money to go back into my current account when it matures. Could I get whoever has my new ISA to transfer the money straight to the new one without it coming back to me on maturity?

Many thanks for your help

Bunny

Baldur

BunnyHankers wrote: »

Thanks Baldur. My ISA is a one year fixed rate one so will mature in December. So can I open up a new one now and just transfer my other one into the same ISA when it matures - I didn't know you could do that and thought it was like a fixed term bond where you can only deposit money into it at the beginning.

It all depends on the new ISA that you choose. If you choose another FRISA, then most will not permit additions/transfers.

One fixed rate (although easy access)product which permits transfers that springs to mind is the First Direct e-ISA @ 3% until November 2010. All you would need to do is request and complete an ISA transfer form when you open it, complete the details of your old ISA and set the date on which you wish the transfer to take place as 'on maturity' (or, if you wish, enter the specific December date) .

I'll do that then - one other question - is there a way of getting my original ISA transferred to my new one when it matures (the old one) without me losing interest or the money going back into my normal account? I can't remember but I think I may have asked for the money to go back into my current account when it matures. Could I get whoever has my new ISA to transfer the money straight to the new one without it coming back to me on maturity?

As above. You MUST use the ISA transfer process (complete new provider's ISA transfer form and let them arrange the transfer into the new ISA).

If the funds leave the old ISA in any other way, their tax free status will be lost.

rias1

I am in the process of moving my ISA from first direct to nationwide, because for some reason FD wont let me in on their 3% isa because I had one of their regular saving isa at 7%, any way just wondered what the advantage of annual interest over monthly interest had if any, Annual is at 2.75% and monthly 2.73%

Lokolo

rias1 wrote: »

I am in the process of moving my ISA from first direct to nationwide, because for some reason FD wont let me in on their 3% isa because I had one of their regular saving isa at 7%, any way just wondered what the advantage of annual interest over monthly interest had if any, Annual is at 2.75% and monthly 2.73%

Compare the AER not the gross.

If the AERs are the same, as long as you keep the monthly interest in the account, you will earn the same as the yearly interest one.

rias1

Thanks Lokolo

mani5ha

Hi everyone,

Ok i'm new to the forums, and to money saving!

I really need some advice, i have about £3000 i can save and i was thinking about an ISA. However, i get the jist of them, but don't know for sure.

I have £3000 currently, and i could probably save £300 or even more, each month, without having to touch any of it until i am able to take it out.

What would be the best type of ISA for me? I thought a fixed rate regular saving ISA but i'm not sure, there seem to be so many different rates and stuff, i'm really confused.

Also, would an ISA be the best way of doing this? currently i have a main account and transfer my savings over to a regular savings account, but i'd like to earn some better interest, if i'm able to.

Sorry if i sound really confused, as u can see, i'm new to all this!

Thanks in advance,

Manisha

Lokolo

mani5ha wrote: »

Hi everyone,

Ok i'm new to the forums, and to money saving!

I really need some advice, i have about £3000 i can save and i was thinking about an ISA. However, i get the jist of them, but don't know for sure.

I have £3000 currently, and i could probably save £300 or even more, each month, without having to touch any of it until i am able to take it out.

What would be the best type of ISA for me? I thought a fixed rate regular saving ISA but i'm not sure, there seem to be so many different rates and stuff, i'm really confused.

Also, would an ISA be the best way of doing this? currently i have a main account and transfer my savings over to a regular savings account, but i'd like to earn some better interest, if i'm able to.

Sorry if i sound really confused, as u can see, i'm new to all this!

Thanks in advance,

Manisha

Unless you are over 50, currently you have a yearly (tax year) ISA limit of £3,600.

So currently if you do not have an ISA you can put £3,600 into a Cash ISA today.

Then on April 6th you get a new allowance (this is going up to £5,100 next year though!).

An ISA gives benefits of tax free interest. However, I assume you are a taxpayer, so this is of course a good deal, as you pay tax on interest in normal savings accounts.

If you have £3,000 now the you can put £3,000 into an ISA, then top up in 2 months to £3,600. Filling up your alloance.

You can then start filling it up on April 6th as your new allowance comes in, or you can open a separate ISA alongside the old one, upto you.