Full ISA Guide Discussion Area

Baldur

willhay99 wrote: »

1. I have a shares ISA that has grown to £12,000. Can I transfer this to a new ISA even though it exceeds the 7200/10200 limit?

The £7,200/£10,200 annual ISA allowances only relate to subscriptions (new money subcribed to an ISA).

There would not be much point having an ISA, whether Cash or Stocks & Shares, if transfer of the full balance/value was not permitted.

Andy86_2

Hi,
I've transferred my isa from nationwide to the first direct 2.75% e-isa.
At the moment the money has gone from my nationwide isa and the isa is no longer showings as an account, but my first direct isa still has £0 balance.

This is just the normal transfer procedure isn't it?
sorry for asking the question, I just want to be 100%

Thank you
Andy

Baldur

ISA transfers are rarely instantaneous and can, in some cases. go wrong - see here for an example of such a transfer.

Andy86_2

Baldur wrote: »

ISA transfers are rarely instantaneous and can, in some cases. go wrong - see here for an example of such a transfer.

Hi thank you for the information. I will give it a bit longer before ringing them.

Andy

nau01179

Hi. I am looking to move ISA. I have less than £3k in my current ISA (none of which was deposited in the last year) and the rate is terrible. I intend to move to a bank with a better rate.

What is the problem with withdrawing the cash to a current account, opening a the new ISA and the moving the money into it. The MSE article states that you shoud "never, ever,ever (etc.) withdraw money from an ISA" but I dont see the issue in this case.

I move the money before April and get my full allowance next year. What is the downside to this?

Cheers

Baldur

nau01179 wrote: »

Hi. I am looking to move ISA. I have less than £3k in my current ISA (none of which was deposited in the last year) and the rate is terrible. I intend to move to a bank with a better rate.

What is the problem with withdrawing the cash to a current account, opening a the new ISA and the moving the money into it. The MSE article states that you shoud "never, ever,ever (etc.) withdraw money from an ISA" but I dont see the issue in this case.

I move the money before April and get my full allowance next year. What is the downside to this?

If you don't have the cash available or don't want to subscribe your full 2009/10 allowance by 5th April, there's no problem - just make sure that you pay the funds into a new Cash ISA before 5th April, then you will have your full £5,100 allowance available for the 2010/11 tax year from 6th April.

nau01179

Baldur wrote: »

If you don't have the cash available or don't want to subscribe your full 2009/10 allowance by 5th April, there's no problem - just make sure that you pay the funds into a new Cash ISA before 5th April, then you will have your full £5,100 allowance available for the 2010/11 tax year from 6th April.

Thanks for the quick response! My current interest is paid annually. Does this mean if I withdraw the money from my current ISA before 5th April, I won't earn any tax-free interest for this year?

Baldur

nau01179 wrote: »

Thanks for the quick response! My current interest is paid annually. Does this mean if I withdraw the money from my current ISA before 5th April, I won't earn any tax-free interest for this year?

Most accounts, whether paid monthly or annually pay the full balance (including any interest earned up to the time of closure) when you close an account.

apprehensive

Hi
I am very new to all of this and wanted to make sure I understand all of this right before I do anything.
I have about 6k in a savings account and I was planning on opening an A&L ISA and putting in this year's amount. (£3600) - i realise i have just days left. Have already started the ball rolling.
My confusion centres around what happens next. From what I gather the max amount goes up to £5100 next financial year.
If I open an account now to get this year's benefits do I leave it and add to it as part of next year's limit or am I better transferring the amount to another new account and topping it up to the new limit (£5100)?
What is best?

RayWolfe

There's no best. It's what suits you and what interest rates you can get.
You can leave it and top up in a few days time after the new tax year.
You can leave it and go to a new provider for next tax year.
You can move it and add to it next year.
You can move it and go to a third, completely different, provider for the new allowance.