Full ISA Guide Discussion Area

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  • Aegis
    Aegis Posts: 5,688
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    Yes, not a problem at all. Transferring previous year contributions doesn't count towards your current year's contribution as long as you make sure the money is transferred and not withdrawn.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • I opened a mini cash ISA last financial year (2007/08) with Halifax. I currently have about £1.50 in that account. I now wish to open another ISA with Barclays due to the better benefits.

    1) Can I transfer my Halifax ISA to the Abbey Direct Issue 2 ISA AND open a Tax Haven ISA with Barclays?
    1A) If I can, would I have to fill the Abbey Direct Issue 2 ISA before opening the Barclays Tax Haven ISA or is there no restriction on when I fill them?
    1B) If I cannot, can I close my Halifax ISA and open the Tax Haven ISA with Barclays in the current financial year?

    As you can probably deduce I am somewhat new to ISAs (£1.50 in the my current ISA for example...) so any help would be greatly appreciated!

    Chris
  • Baldur
    Baldur Posts: 6,565 Forumite
    I opened a mim cash ISA last financial year (2007/08) with Halifax. I currently have about £1.50 in that account. I now wish to open another ISA with Barclays due to the better benefits.

    1) Can I transfer my Halifax ISA to the Abbey Direct Issue 2 ISA AND open a Tax Haven ISA with Barclays?
    1A) If I can, would I have to fill the Abbey Direct Issue 2 ISA before opening the Barclays Tax Haven ISA or is there no restriction on when I fill them?
    1B) If I cannot, can I close my Halifax ISA and open the Tax Haven ISA with Barclays in the current financial year?

    As you can probably deduce I am somewhat new to ISAs (£1.50 in the my current ISA for example...) so any help would be greatly appreciated!

    Chris

    1. Yes.
    2. 1a - If you transfer past year's funds to Abbey, you can either pay new money (i,e, this year's £3,600 allowance) into that account or into a new account NOT BOTH.
    1b. It's rather pointless leaving £1.50 in an account, to which you can't add any further money this year. You can either leave it open or close it - that has no effect on the proposed new Tax Haven ISA you can still only pay £3,600 into one ISA this tax year.
  • Ahhh so I can't transfer my Halifax ISA to Abbey, fill it up, open one with Barclays and fill that too all in the 08/09 financial year?

    I think I understand...basically I need to get down to Barclays and get that ISA open?

    Chris
  • Baldur
    Baldur Posts: 6,565 Forumite
    basically I need to get down to Barclays and get that ISA open?

    Indeed you do.
  • I have an ancient dust-covered TOISA which, as I understand it, is now effectively a standard Cash ISA and can be transferred to another provider. I would intend to transfer this to a new provider and then pay in the 08/09 £3,600 cash allowance on top of this.

    However, I also have an existing cash ISA from 07/08. I do not want to pay any more funds into this account due to the amount already invested but would, nevertheless, like to secure a better rate of interest.
    Can I also transfer this to a second provider for 08/09 (i.e. not the provider with the transferred TOISA funds and new cash) so long as I do not pay new funds into it?
  • Baldur
    Baldur Posts: 6,565 Forumite
    JohnsDosh wrote: »
    I have an ancient dust-covered TOISA which, as I understand it, is now effectively a standard Cash ISA and can be transferred to another provider. I would intend to transfer this to a new provider and then pay in the 08/09 £3,600 cash allowance on top of this.

    However, I also have an existing cash ISA from 07/08. I do not want to pay any more funds into this account due to the amount already invested but would, nevertheless, like to secure a better rate of interest.
    Can I also transfer this to a second provider for 08/09 (i.e. not the provider with the transferred TOISA funds and new cash) so long as I do not pay new funds into it?

    Yes, as long as both providers/products permit inward transfers.

    Transfers to the new account (new allowance + ex-TOISA funds) should be organised by the new ISA provider when you open it, there's no need for two separate transactions - you can pay in this year's allowance & complete the transfer form at the same time, if you wish.

    In the case of the second tranche of funds (07/08) remember that the transfer must also be initiated by applying to & completing the transfer form of your chosen new provider, not by yourself
  • Thanks very much for that.
  • mik93
    mik93 Posts: 3 Newbie
    We have some ISAs. Whilst the cash is in the ISA there is no tax on it. so far so good.

    When the cash is withdrawn it has the interest added.

    I suppose that this has to be declared to the IR and tax paid. If tax is paid on the interest then what is the point of it being "tax free" whilst it is in the ISA ?

    Its clear I'm missing something here ????
  • Baldur
    Baldur Posts: 6,565 Forumite
    mik93 wrote: »
    We have some ISAs. Whilst the cash is in the ISA there is no tax on it. so far so good.

    When the cash is withdrawn it has the interest added.

    I suppose that this has to be declared to the IR and tax paid. If tax is paid on the interest then what is the point of it being "tax free" whilst it is in the ISA ?

    Its clear I'm missing something here ????

    ISA funds, including any interest, are tax free, so you would not be required to declare them or be taxed when withdrawing but if they are then paid into a taxable account (let's call it account B), any interest subsequently earned on account B would be subject to taxation.
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