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  • FIRST POST
    • jamlan01
    • By jamlan01 6th Aug 18, 11:35 AM
    • 6Posts
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    jamlan01
    Opening a cash ISA in the same tax year as closing a HTB ISA?
    • #1
    • 6th Aug 18, 11:35 AM
    Opening a cash ISA in the same tax year as closing a HTB ISA? 6th Aug 18 at 11:35 AM
    Is this allowed?

    I've used two payments of this years allowance(400 total) into my HTB ISA that was closed to claim the gov bonus on my purchased property. Now I want to open a new cash ISA.

    I understand that if the account had not been closed, we would transfer the ISA. What is the process, if one exists, when the ISA has been closed?
Page 1
    • jamlan01
    • By jamlan01 6th Aug 18, 11:46 AM
    • 6 Posts
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    jamlan01
    • #2
    • 6th Aug 18, 11:46 AM
    • #2
    • 6th Aug 18, 11:46 AM
    Please feel free to delete.
    I found the answer on the guide.

    I've used my Help to Buy ISA for a home. Can I now open a cash ISA this tax year or do I have to wait until next?

    Yes, you can open a cash ISA once you've closed your Help to Buy ISA.

    Normally you can only pay new money in to one cash ISA per tax year (Help to Buy counts as a cash ISA), but a little-known exception to the rule is that you're allowed to pay in to a second (but no more), if you've fully closed the first, not just emptied it.

    As you need to fully close the Help to Buy ISA to get the bonus to buy a home, you'd be free to open a new cash ISA this tax year.
    • eskbanker
    • By eskbanker 6th Aug 18, 11:50 AM
    • 8,225 Posts
    • 9,238 Thanks
    eskbanker
    • #3
    • 6th Aug 18, 11:50 AM
    • #3
    • 6th Aug 18, 11:50 AM
    Even though you can open a cash ISA, you may wish to consider whether it's the most sensible thing to do when there are a number of alternatives that are likely to give better returns on your money, as per:

    https://www.moneysavingexpert.com/savings/which-saving-account
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest
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