Full ISA Guide Discussion Area

Consumerist

Kurenka wrote: »

First of all apologies if this has already been covered...

I currently have a Help to Buy ISA and I have a house purchase going through in the next month or 2.
If I pay into my H2B ISA in the 2018/19 Tax Year then close it, can I open a new ISA and start making payments into that in the same tax year, or would the fact that I've already paid into an ISA stop me from doing that even though it has since been closed?

See MSE <Top Cash ISAs> Section 5.

The rules say only one per tax year but it seems there is a way around them.

chrisward49

I have opened a Nationwide isa at 1.3% for this year but have not yet paid in any money, I have now seen the Tesco Isa for 1.6% with a 0.50% bonus which would give me a better return. Can I cancel the Nationwide??

Consumerist

chrisward49 wrote: »

I have opened a Nationwide isa at 1.3% for this year but have not yet paid in any money, I have now seen the Tesco Isa for 1.6% with a 0.50% bonus which would give me a better return. Can I cancel the Nationwide??

Yes.

As far as HMRC is concerned, an ISA is not "open" until you have paid money or transferred funds into it.

So far, you have only opened the account which you can just ignore providing you do not contribute to it this year. Leave it open or close it as you wish.

AirlieBird

chrisward49 wrote: »

I have now seen the Tesco Isa for 1.6% with a 0.50% bonus which would give me a better return.

Where have you seen this? There is no ISA for 1.6% on Tesco's site as far as I can see.

Consumerist

chrisward49 wrote: »

I have opened a Nationwide isa at 1.3% for this year but have not yet paid in any money, I have now seen the Tesco Isa for 1.6% with a 0.50% bonus which would give me a better return. Can I cancel the Nationwide??

Are you sure you are not misreading 1.16% on Tesco's flexible ISA as 1.6% ?

chrisward49

Sorry yes my mistake is it 1.16% I missed the 1 out !!!

bobby1000

Hi, hoping that someone can help me. I have been looking online for a few days now and a bit stumped.

I am currently in a SAYE share scheme with my employer. I have opted for the three year scheme and it ends in July. I'm in a fortunate position that the share price has almost doubled.

In order to be as tax efficient as possible I want to transfer to an ISA - the Gov UK site states that in order not to pay any capital gains tax I need to transfer my shares within 90 days - however after contacting several investment providers non of them have told me that this service is available.

Can anyone help me on this? I am really new to this world so a bit stumped as to what to do...can anyone recommend any traders that they know offer this or how I actually do this!

david4321

ISA rates are currently so poor, that you can get a higher net rate from a non-ISA account, even if you have so much interest that you pay tax on it. For example today, the best one-year fixed account is 1.49% for an ISA, but for non-ISA it's 2.00% gross, which is 1.60% net after tax for basic rate taxpayers. I don't know why nearly all banks have much worse rates for ISA than for non-ISA.

mije1983

david4321 wrote: »

ISA rates are currently so poor, that you can get a higher net rate from a non-ISA account, even if you have so much interest that you pay tax on it. For example today, the best one-year fixed account is 1.49% for an ISA, but for non-ISA it's 2.00% gross, which is 1.60% net after tax for basic rate taxpayers. I don't know why nearly all banks have much worse rates for ISA than for non-ISA.

But not everyone is a basic rate taxpayer.

Consumerist

david4321 wrote: »

. . . I don't know why nearly all banks have much worse rates for ISA than for non-ISA.

Perhaps because ISAs cost more to manage than non-ISAs.