Full ISA Guide Discussion Area

EmilyW_2

I've read the rules on ISAs but I'm not clear what happens if you go over the £3600 limit.

1)If I invest, say £4000 in one year, do I lose the tax exemption on all the money or just the additional £400 pounds?

2)Next year, do I earn tax free interest on the whole amount, or just the £3,600?

Thanks!

Lokolo

1) usually the £400 but theres the chance on the whole lot

2) stays tax free forever on the whole lot (unless the interest isn't paid into the ISA, make sure it is)

Taxi_2

Hi, just a quick question on ISA's, I checked the thread but couldn't find a similar question..
I opened an ISA last year, and filled up the £3,000 allowance. Now, I had to take that out in May this year, without adding anymore since April.
Now, I'm ready to start saving again, do I still have an allowance this year or have I messed it all up by withdrawing?
Can I transfer this to another account (I only have like £40 interest in there from last year) and start saving there?

Many thanks

Taxi

Lokolo

You can transfer the £40 to a new ISA and fill the new ISA up by £3600 (the limit from this year on is £3600).

But you must transfer the £40 using an ISA transfer form.

Taxi_2

Excellent news thanks
And thanks for the super quick reply too!

abri123

I have £400 in a Natwest ISA that I opened in 2007/2008 tax year. I then opened a Natwest e-ISA in 2008/09 tax year which so far I have deposited £2000 into. The original ISA still contains the £400. Will this keep earning interest as well as the new ISA, or will no further interest be paid into this account? Is it best to leave the £400 where it is, transfer it to the new ISA, or withdraw it? Please help/advise.

Anoop_2

Hi people, my first post so please be gentle.

Now, I am sure this has most probably been asked but i am still confused and looking for clarity, so apoligies if this is repeating something someone else has already asked.

I saved the maximum £3000 isa allowance last year (07/08) with ING, but then transfered this come the new tax year in April to Icesave. Now where I am confised and need clarity is, am I allowed to add this years (08/09) allowance £3,600 on top of the £3,000 that I already have in Ice save, or can I only just add in £600 to top it up to the allowance only.

I did phone and ask Icesave this question but kind of got told no, and that I have used the allowance, maybe I am just easily confused! A

Anyway your help would be mostly appreciated

Anoop

RayWolfe

You have another £3600 for this financial year ... and another £3600 next year ... and another ... well, you get the picture.

sarah2682_2

Hiya,

Can someopne please verify this for me.......

I have an online isa which i have payed £3600 into this tax year so obviously I cannot put any more money into this isa this tax year, but i already have a second isa with my bank which i opened several years ago but have not payed nay money into for several years, can i put money into this isa this tax year???

Thanks
Sarah

RayWolfe

No.
You may keep it, transfer it or dispose of it but not add to it.