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Open new Cash ISA now for a transfer - checking not counted as Cash ISA for this year?
Posted: May 15th, 2023, 2:11 pm
by tlf67482
If you open a new cash ISA "today" containing £0 and then transfer money into the new cash ISA from an old cash ISA can you still open another ISA later this tax year with a completely different (or even the same) company and use your allowance from this year?
This is what I have been told but it just seems wrong as it is like you are opening two ISAs in a year - it is not going to set off alarm bells at HMRC?
If anyone has an official link explaining can post it?
Thanks
Re: Open new Cash ISA now for a transfer - checking not counted as Cash ISA for this year?
Posted: May 15th, 2023, 2:19 pm
by swill453
The rules don't restrict how many ISAs you can open, they restrict how many you can pay money into.
https://www.gov.uk/individual-savings-a ... -isas-work says "
Every tax year you can put money into one of each kind of ISA."
Transferring from an old ISA doesn't count as "putting money in".
Scott.
Re: Open new Cash ISA now for a transfer - checking not counted as Cash ISA for this year?
Posted: May 15th, 2023, 3:19 pm
by tlf67482
swill453 wrote:The rules don't restrict how many ISAs you can open, they restrict how many you can pay money into.
So the system knows when I transfer the money from the old ISA into the new £0 ISA I haven't used any allowance and alarms bells will not go off at HMRC when I eventually open a "new" ISA for this years allowance? Sorry for the obvious questions I just want to be sure as it is the first time I have had to handle this. Thanks
Re: Open new Cash ISA now for a transfer - checking not counted as Cash ISA for this year?
Posted: May 15th, 2023, 4:00 pm
by Gersemi
tlf67482 wrote:swill453 wrote:The rules don't restrict how many ISAs you can open, they restrict how many you can pay money into.
So the system knows when I transfer the money from the old ISA into the new £0 ISA I haven't used any allowance and alarms bells will not go off at HMRC when I eventually open a "new" ISA for this years allowance? Sorry for the obvious questions I just want to be sure as it is the first time I have had to handle this. Thanks
Well I've done it several times without any problems or queries from HMRC.
Re: Open new Cash ISA now for a transfer - checking not counted as Cash ISA for this year?
Posted: May 15th, 2023, 8:59 pm
by chas49
tlf67482 wrote:I just want to be sure as it is the first time I have had to handle this.
I'm sure you don't need this warning, but just in case -
It is essential that you tell the new ISA provider to request the transfer from your old provider. Do NOT take the money out of the old ISA yourself. If you do that, the money will fall out of its ISA status, and would count as a new subscription if you pay it in yourself...