ISA question

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  • ISA question
  • jonba
    Member

    Can anyone help me as I can’t find a definitive answer on this?

    If I transfer money from one ISA (A) and open another ISA (B) can I carry on paying into (A) in the same tax year?

    I want to move some money from a variable to a fixed rate but the fixed will only take one lump sum so after making the transfer I want to continue moving into the original one. I think I could transfer the money and then pay into B but obviously the bank won’t let me do this. If it was not a fixed rate lump sum only then paying into B would be allowed under the transfer rules.

    Premier Icon mattstreet
    Subscriber

    If I transfer money from one ISA (A) and open another ISA (B) can I carry on paying into (A) in the same tax year?

    No. You can only hold 1 cash ISA per tax year. With this you would be holding 2. Transferring would close ISA A anyhow.

    What you can do, if you want to stash more money into an ISA, is transfer A into B, then open (C) a stocks & shares ISA. You can’t later transfer a S&S ISA into a cash one though.

    That’s my understanding of it. IANAIFA!

    trail_rat
    Member

    You can hold 2 isas in the same year

    You cant pay into more than 1

    You can transfer a previous years isa contributions into a new isa without loosing the tax status on it if you fill out the forms

    I have 3 isas all from different years

    jonba
    Member

    Still no clearer to me then?

    Is the transfer counted as a payment then? You can do part transfers in the same way you can do full transfers or at least that is what I’m lead to believe.

    I would be doing one transfer and paying into one… maybe I should ask the bank, doubt the guy in India will know though.

    toby1
    Member

    Transferal increases the credit surely and therefore is treated as a payment into that ISA. Once you have one for the current tax year, you shouldn’t be able to open a second in that same tax year as far as I know. And once the tax year is over you can no longer pay into the previous years ISA.

    You should just pay it into a Monaco account named after your dog, then sod the tax, apparently that is perfectly legal 🙂

    Premier Icon Stu_N
    Subscriber

    You can only pay into one cash ISA in a tax year (6 April to following 5 April ). A transfer, provided done through the proper route between institutions, doesn’t count as a “pay-in”.

    I don’t entirely understand your question, but I think I am answering what you are asking here.

    If you have paid into “A” this tax year, you can transfer money from “A” into “B” and keep paying into “A”. You couldn’t put anything into B other than by a transfer until the nex tax year.

    I am not an expert but did look into this from point of view of putting something from my existing ISA into a fixed rate fixed term ISA.

    Premier Icon mattstreet
    Subscriber

    Yeah, clear as mud really… 😯 Maybe this helps:
    MoneySavingExpert ISA advice

    The key bit on there is this:

    The golden rule is you can only open a cash ISA with one provider in a tax year, you can’t split it. However you can hold lots of different cash ISAs from different years with different providers.

    A cash ISA transfer, AFAIK, is a wholesale thing – you move the whole ISA entitlement from one provider to another – there is nothing remaining at the original provider. Partial transfers can only be done to stocks & shares ISAs and then count towards your annual S&S limit. Hence, you’ve still only paid into a single years entitlements (for cash and/or S&S ISAs).

    I am pretty sure now they make it confusing on purpose!

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