Full ISA Guide Discussion Area

eskbanker

Consumerist wrote: »

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.

....and it's not a strictly like-for-like comparison anyway: because of ISA regulations, it must be possible to withdraw money from a one-year fixed ISA during the term (albeit a penalty charge will be applied) but a one-year fixed non-ISA account will typically not allow withdrawals at all.

andymixed01

Bit late now but my 80 year mate saved several isas over the many years in order to pay for care in later life.
He passed away about 5 months ago and now the gov is taking 40% of his isa savings for IHT.
thoughts why did he bother?
Andy

eskbanker

andymixed01 wrote: »

Bit late now but my 80 year mate saved several isas over the many years in order to pay for care in later life.
He passed away about 5 months ago and now the gov is taking 40% of his isa savings for IHT.
thoughts why did he bother?
Andy

Answer: "in order to pay for care in later life", and hopefully he succeeded in achieving this, by taking advantage of the tax benefits while saving or investing.

However, ISAs have never been exempt from inheritance tax, so if he'd wanted to minimise that then he should have taken some advice on how to do so earlier on....

JohnB47

Hi all. Sorry if this has been asked to death. I have an HSBC cash ISA into which I have paid a small amount this tax year. I now want to open a new cash ISA (paragon Bank) and I've hit the statement "I have not subscribed, and will not subscribe, to another Cash ISA in the same tax year that I subscribe to this Cash ISA".

I'm planning to move all of the money in my HSBC ISA into the Paragon one and not pay anything more into the HSBC one. Or I could calculate how much I've paid into the HSBC account in this tax year, leave it there and transfer all the rest (and pay any new money only into the new ISA this tax year).

Is this permitted? I'm not quite sure what the statement above means.

So, as an example. Say I have £3050 in the HSBC ISA. Only £50 of this was paid in in the current tax year. Can I open a new ISA now and pay any new money into this new ISA? What amount can I transfer to the new ISA?

Thanks.

masonic

JohnB47 wrote: »

So, as an example. Say I have £3050 in the HSBC ISA. Only £50 of this was paid in in the current tax year. Can I open a new ISA now and pay any new money into this new ISA? What amount can I transfer to the new ISA?

Using your example, you must transfer at least the £50 paid in the current tax year (+interest) to a new ISA in order to be able to pay new money into the new ISA. The transfer form will allow you to specify that you want to transfer all of the money relating to the current tax year.

When you transfer current year money, it is treated as having been subscribed to the new ISA, so you are able to make the declaration about not subscribing to another Cash ISA.

JohnB47

masonic wrote: »

Using your example, you must transfer at least the £50 paid in the current tax year (+interest) to a new ISA in order to be able to pay new money into the new ISA. The transfer form will allow you to specify that you want to transfer all of the money relating to the current tax year.

When you transfer current year money, it is treated as having been subscribed to the new ISA, so you are able to make the declaration about not subscribing to another Cash ISA.

Great, thanks. I used to do this every year but haven't for a while now, so I'm a bit rusty.

ghowell13

Bit of an odd one, but seen that it is advertised on this website that the Nationwide H2B ISA allows transfers in, however, in reality it doesn't after trying to transfer my H2B ISA to Nationwide.

I have over the £1200 max initial pay in with another provider, however, I am unable to transfer in the full value to Nationwide. They only allow transfers in to their H2B ISA to a £1200 max, and nothing over. This seems a bit odd, as the scheme rules allow a full value H2B ISA transfer. Anyone else had this issue with Nationwide?

Thanks.

Alexland

ghowell13 wrote: »

I have over the £1200 max initial pay in with another provider, however, I am unable to transfer in the full value to Nationwide. They only allow transfers in to their H2B ISA to a £1200 max, and nothing over. This seems a bit odd, as the scheme rules allow a full value H2B ISA transfer. Anyone else had this issue with Nationwide?

Yes we have heard of a few people occasionally getting told this by various providers. It's almost certainly a training issue as this extra limitation is not mentioned on their website. Speak to someone else at Nationwide and hopefully they will tell you the right answer.

Alex.

ejv

I know there are some restrictions on transfer of current year's ISA.

Am I allowed to transfer in some old ISA into this year's ISA,which I have already maxed out?

Consumerist

ejv wrote: »

I know there are some restrictions on transfer of current year's ISA.

Am I allowed to transfer in some old ISA into this year's ISA,which I have already maxed out?

Yes. Providing the ISA manager allows transfers-in.

The only restriction on current-year ISAs is that you must transfer all of this tax year's contributions together.