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Transfering ISA problems - should i be worried?
gracie83
Posts: 301 Forumite
For the last tax year I had £3000 in a natwest ISA. At the beginning of April I opened an ISA with Alliance and Leicester and put in £3600. I then filled in the form asking for the £3000 from Natwest to be transfered to the A&L account. Today I got a statement from natwest saying that on the 6th June they closed my ISA down and transfered the £3000 to A&L. What is worrying me is that they have also transfered to the new ISA the interest I earned on the old ISA which is £24. Will this take me over my ISA amount?
Should I be worried about this or just take the £24 out of the ISA when it arrives?
That is another worry the money has been transferring for a week now - should I be worrying where it has got to!
Should I be worried about this or just take the £24 out of the ISA when it arrives?
That is another worry the money has been transferring for a week now - should I be worrying where it has got to!
0
Comments
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Leave the interest in the ISA, as soon as you withdraw it, it ceases to be tax free - it makes no difference to this year's allowance. The whole idea of Cash ISAs is to enable people to build up several years'-worth of tax free capital & interest.Should I be worried about this or just take the £24 out of the ISA when it arrives?
That is another worry the money has been transferring for a week now - should I be worrying where it has got to!
A week is nothing, if you look at other posts in this forum, it has taken weeks/months for some people's transferred funds to show up in their new Cash ISA.0 -
Interest paid within an ISA is also tax free, as long as it remains in the ISA. How long was it there for, as £24 isn't a lot of interest on 3K, unless it was only for a short while.
As Baldur says, a week is nothing in ISA transfer terms.Debbie0 -
Hi I'm also transferring to A+L. I just phoned them to chase on my transfers. They admit they are a long way behind on processing them and said it would be done with my interest backdated to date of receipt of cheque.
They said they are currently processing funds received on May 12.
JonathonI have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.0
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