Full ISA Guide Discussion Area

eskbanker

dennis_hough said:

Don't try to do a Loyalty ISA transfer from the Nationwide folks it take a month and they are not interested in talking to you about it. So much for the OFT and its recommendations of up to 15 days then?

It's nothing to do with the OFT, but the FCA guidance is 15 working days, i.e. three weeks (plus bank holidays).  Not trying to defend either Nationwide or PO here but it's hardly surprising that things are taking longer than usual at the moment, given the perfect storm of lower staff availability, annual ISA season and plummeting interest rates, so a bit of patience will help, rather than getting too worked up about what a 'horrific' experience it is....

Consumerist

In contrast, I recently transferred an ISA from Coventry BS to Charter Savings Bank and it took one day.

Unfortunately, Post Office banks with Bank of Ireland and the latter are reputedly a bit of a nightmare if you believe the posts on MSE.

I avoid anything to do with Bank of Ireland to avoid stress.

eskbanker

gozaimasu said:

I contributed to a cash ISA this tax year. It contained a transfer from a previous year, plus more contributions this year. I then closed the ISA, withdrawing all the cash with interest. When opening a new cash ISA we are asked if we have already contributed to an ISA in this tax year. If I want to open another cash ISA, how do I answer that question? Obviously I did contribute to one, but it no longer exists.

You can (once per tax year) pay into a cash ISA after already making earlier contributions to another one that's since been closed, if you have any of your £20K annual allowance left, using the 'self-transfer' facility explained at https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void

grumiofoundation

gozaimasu said:

I contributed to a cash ISA this tax year. It contained a transfer from a previous year, plus more contributions this year. I then closed the ISA, withdrawing all the cash with interest. When opening a new cash ISA we are asked if we have already contributed to an ISA in this tax year. If I want to open another cash ISA, how do I answer that question? Obviously I did contribute to one, but it no longer exists.

Was it a flexible ISA?

If so I believe (unless corrected) that you could open a new cash ISA as you are deemed to have contributed £0 to that ISA.

If non-flexible you cannot open and contribute to a new cash ISA in this tax year.

masonic

So the ISA that you accidentally deposited money into subsequently received a transfer of current year funds from your (then) valid cash ISA for this tax year, making it your now valid cash ISA for this tax year? This should not create any issues when HMRC processes its annual returns and would not consume your self-transfer for the year.

masonic

gozaimasu said:

masonic said:

So the ISA that you accidentally deposited money into subsequently received a transfer of current year funds from your (then) valid cash ISA for this tax year, making it your now valid cash ISA for this tax year?

Yes that's right, then I closed that ISA after the rate dropped. I just don't know if they include that as a "self-transfer" or not. Therefore I don't know if I will be able to put last year's funds into a new ISA plus this year's? Or just last year's?

The self-transfer rule means that if you have not subscribed to any other types of ISA in this tax year, you may deposit up to £20k in another cash ISA and it will be valid. What you have done would not have already consumed your penalty free self-transfer for the year.

gozaimasu

Ok, so this means I cannot pay in last year's subscriptions PLUS this year's subscriptions if more than £20k, because withdrawing it from my first ISA and paying it into a second ISA would mean I would exceed this year's contribution limit.

I've been reading through these worked examples:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695897/worked_examples_of_repairs_and_voiding.pdf

It seems that because the Coventry ISA was a flexible ISA, I could still deposit the full £20k in a new cash ISA. The reason I withdrew the funds is because I will probably be nowhere near the deposit limit, plus the best rate cash ISA at the moment doesn't accept transfers in.

masonic

gozaimasu said:

Ok, so this means I cannot pay in last year's subscriptions PLUS this year's subscriptions if more than £20k, because withdrawing it from my first ISA and paying it into a second ISA would mean I would exceed this year's contribution limit.

I've been reading through these worked examples:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695897/worked_examples_of_repairs_and_voiding.pdf

It seems that because the Coventry ISA was a flexible ISA, I could still deposit the full £20k in a new cash ISA. The reason I withdrew the funds is because I will probably be nowhere near the deposit limit, plus the best rate cash ISA at the moment doesn't accept transfers in.

You've only previously mentioned a sum of £1k from this tax year and a sum of £3k from the previous tax year. If the total amounts involved are more than this, then yes, you can ask Coventry to reinstate your ISA and you could make replacement subscriptions up to the value of the previous year subscriptions withdrawn, and open a new cash ISA and deposit up to £20k using the self-transfer rule, or just replace the lot and request a formal ISA transfer elsewhere.

happyandcontented

New to ISA's but have a TFLS of C 300k to invest which needs to be relatively accessible for property purchase in a couple of years. If we weren't looking to do this we would leave it in the pension wrapper.

We already have c 80k in Marcus.

We are a couple,  one soon to be a non taxpayer, and the other is a high rate taxpayer (I am not sure if that is relevant)

Any pointers for our max 40k per tax year?

Any recommendations where to place the remainder of the funds? NSI/Premium Bonds

masonic

happyandcontented said:

New to ISA's but have a TFLS of C 300k to invest which needs to be relatively accessible for property purchase in a couple of years. If we weren't looking to do this we would leave it in the pension wrapper.
We already have c 80k in Marcus.
We are a couple,  one soon to be a non taxpayer, and the other is a high rate taxpayer (I am not sure if that is relevant)
Any pointers for our max 40k per tax year?
Any recommendations where to place the remainder of the funds? NSI/Premium Bonds

Depending on the soon-to-be non-taxpayer's other income, all of the savings could be put in their name and the interest would be tax free. This means a cash ISA should only be considered if the interest rate is equivalent or better than the equivalent rate in a normal savings account. You would normally need to split across 4 institutions if you wished to remain under the FSCS compensation limit at each, but at the moment NS&I is offering the best easy access rate and is backed by HM Treasury, and it beats all of the 1 year fixed rate accounts, so could fit the bill for the whole amount. Interest would be just under £3.5k per year.