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    • AlanB1976
    • By AlanB1976 18th May 19, 1:51 PM
    • 13Posts
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    AlanB1976
    tax on old ISA?
    • #1
    • 18th May 19, 1:51 PM
    tax on old ISA? 18th May 19 at 1:51 PM
    Hi there
    Sorry for the stupid question and I know the answer is out there but I just can't seem to find it.
    I have an old ISA I set up for my some money I invested for my kids (in my name - yes, yes, I know you can get junior ISA's but I wanted it in my name). I now want to start an ISA for this tax year for my own investment and want to keep their account separate. If I don't touch it, will their account (basically my previous year's ISA ) get taxed on interest since I have another ISA or because I originally invested as an ISA will it still remain tax free?
    Thanks
    Alan
Page 1
    • bowlhead99
    • By bowlhead99 18th May 19, 2:02 PM
    • 8,842 Posts
    • 16,190 Thanks
    bowlhead99
    • #2
    • 18th May 19, 2:02 PM
    • #2
    • 18th May 19, 2:02 PM
    Every tax year you can invest up to 20,000 in an ISA. It is a per-year limit on what you contribute, not a lifetime limit.

    If you choose to invest in an ISA for yourself this tax year, it doesn't make the ISAs of previous years taxable. They are still sitting there tax free.

    What you can't do is invest in two separate ISAs of the same type in the same tax year.

    So for example if you had a S&S ISA in a previous year that you invested earmarked for your kids, and you want to carry on adding new money to that ISA in 2019/20 tax year, you can't also start adding to a new S&S ISA in the 2019/20 tax year, because all your current year S&S ISA money must be in one place.

    Likewise if the money for your kids was a cash ISA and you wanted to set up your own cash ISA, you couldn't keep contributing to 'their' cash ISA this tax year.

    But if 'theirs' was a cash ISA and yours is an S&S ISA it is fine for you to add more money to both, because they are different ISA types. And if you're not adding any more to 'their' ISA in 2019/20 at all, you'll be completely unrestricted in your own choices for 2019/20 subscriptions.
    • dunstonh
    • By dunstonh 18th May 19, 4:49 PM
    • 98,597 Posts
    • 66,996 Thanks
    dunstonh
    • #3
    • 18th May 19, 4:49 PM
    • #3
    • 18th May 19, 4:49 PM
    There is also the potential to invest in unwrapped holdings. You can receive 2000 a year in dividends tax free. That would take 100k of investments approx. So, plenty of scope to remain tax free there.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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