ISA guidance - Intelligent Money Private Clients

[alscar]

Afaik the only tax relief available generally is where you have invested in VCT’s or EIS’s and the like be it directly or via Fund holdings.

[dingg]

Condi said:

Can you claim tax relief (?) on money lost in an ISA? I was the holder of some Wasps Bonds, which are now basically worth nothing. It's not a life changing amount of money, but is there any tax relief/CGT allowances etc which you can claim, as you would if it was outside an ISA wrapper?

Unfortunately no

Gains tax free, losses tough titty

[Sheepshanks]

Condi said:

Can you claim tax relief (?) on money lost in an ISA? I was the holder of some Wasps Bonds, which are now basically worth nothing. It's not a life changing amount of money, but is there any tax relief/CGT allowances etc which you can claim, as you would if it was outside an ISA wrapper?

Don't you have to have taxable gains to set the loss against anyway? Fair enough if you have,

[Sheepshanks]

Mr Whippy said:

4.26% is pretty good but locked for a year… hmmm.

I see rates continuing to rise.

I went for that a couple of weeks ago at a slightly lower rate - some accounts were starting to come off their highs.

It is fixed (for two years as another poster said) but you can get money out for a loss of some interest (90 days, I think) - do your own checks though. I looked at a couple of others and there is no withdrawal except on death.

[The spinner of plates]

Sheepshanks said:

Mr Whippy said:

4.26% is pretty good but locked for a year… hmmm.

I see rates continuing to rise.

I went for that a couple of weeks ago at a slightly lower rate - some accounts were starting to come off their highs.

It is fixed (for two years as another poster said) but you can get money out for a loss of some interest (90 days, I think) - do your own checks though. I looked at a couple of others and there is no withdrawal except on death.

Yeah I put some in last month at 4.17% I think.

I don't need access to it for the foreseeable, but can grab it in an emergency.
"You can withdraw money from your account but you cannot put money back in. Any withdrawals made within the fixed rate period are subject to a charge equivalent to 90 days' loss of interest on the amount withdrawn".

Decided to move some from premium bonds... I seem to very unlucky indeed!
A guaranteed 4%+ for the next couple of year is better than the actual 0% I seem to be getting right now!

I'll use the premium bonds as a top up throughout the tax year, then dump into an ISA again 6th April 2024.

[Mr Whippy]

Sheepshanks said:

Mr Whippy said:

4.26% is pretty good but locked for a year… hmmm.

I see rates continuing to rise.

I went for that a couple of weeks ago at a slightly lower rate - some accounts were starting to come off their highs.

It is fixed (for two years as another poster said) but you can get money out for a loss of some interest (90 days, I think) - do your own checks though. I looked at a couple of others and there is no withdrawal except on death.

The long locks right now would leave me nervous.

When IM are to be offering MM at 3.75% (ish) totally liquid it’s hard to understand the need to lock to get the extra 0.5%

[Consigliere]

If i understand it correctly I can have as many S&S ISAs as i like but can only pay into 1 S&S ISA per year.

If I deposited £1k into an S&S ISA in 2021/22 - if i then sell some original stocks (bought in 21/22) and re-invest in 22/23 (not putting any more funds in - just buying and selling with that initial deposit in 21/22) - does this count as paying into the S&S ISA therefore prohibiting me from opening another S&S ISA in 22/23?

[Intelligent Money]

Consigliere said:

If i understand it correctly I can have as many S&S ISAs as i like but can only pay into 1 S&S ISA per year.

If I deposited £1k into an S&S ISA in 2021/22 - if i then sell some original stocks (bought in 21/22) and re-invest in 22/23 (not putting any more funds in - just buying and selling with that initial deposit in 21/22) - does this count as paying into the S&S ISA therefore prohibiting me from opening another S&S ISA in 22/23?

Hi Consigliere

As long as the sale and purchase take place within the ISA i.e. funds aren't returned to your bank account as a withdrawal, then the trades are not treated as contributions.

Cheers

Nik

[OldSkoolRS]

Just two months into a 3 year fixed ISA and the rates are now 1.3% higher than my fix. I understand that there is a penalty of 120 days interest, which would be more than covered by the extra interest if moved to another fixed 3 year ISA at the current rates. Overall I'd be quite a bit better off even allowing for the penalty.

Can I just open another 3 Year fixed ISA and tick the box to transfer from the one I started two months ago? I didn't put the full allowance in this year either (just rounded the amount up), so I could top it up a bit more to cover the penalty and more if I wanted. It is equivalent to quite a few year's allowance so the monthly interest is quite useful to me having retired early.

Might be possible with the same provider (Virgin), though I think they have pulled their 3 year deals at the moment, so I may have to move to another provider. Just wanted to be sure of the process.

[alscar]

OS , afaik you can providing its all done in the same tax year year ( ie exit and then the new one ) with the proviso that the original is " flexible " to let you do that in terms of then adding that top up etc.
I've no idea what the definition of flexible is though so you may need a quick look through the existing t and c.
i believe you are also allowed to switch providers too.

[alscar]

Sorry just to add I think the rules may also differ depending on whether or not its held in a Lifetime v the more conventional ISA.

[OldSkoolRS]

Cheers Alscar; meant to reply previously and got distracted.

I didn't think it needs to be flexible if it's being moved to another ISA or does that function carry across, even if I go with another provider? Think I'll give them a call this week and find out more. Quite happy just to leave the same amount in, minus the interest penalty, but would have been good to round it back up to the original amount. Not the end of the world if a flexibility function applies.

Shame I can't do this with some FRBs I started 3 months ago, but that's on me and I knew the rules going in. With this ISA there is the option of paying a 120 day interest penalty as it's worth it taken over the whole period, so I'll do it once I find out how.

[alscar]

Yup always a degree of inevitability that once you’ve fixed your rate another better one appears.
That said providers like RCI and Nationwide offer a guarantee that if between applying and taking it out a better rate appears with them they will give the same to you.
As regards the ISA my wife has just had hers come up for its renewal - 1 year fix with Nationwide at 5.5% which feels decent enough.

[The Leaper]

alscar said:

Yup always a degree of inevitability that once you’ve fixed your rate another better one appears.
That said providers like RCI and Nationwide offer a guarantee that if between applying and taking it out a better rate appears with them they will give the same to you.
As regards the ISA my wife has just had hers come up for its renewal - 1 year fix with Nationwide at 5.5% which feels decent enough.

By chance, wife and I have three of our ISAs maturing in August and another in September, two with Nationwide. It will be good to get vastly improved interest rates going forward, whoever we place the maturity values with. I suspect we will simply roll them over with the current providers... in our view there's something to be said for remaining with a good household name as opposed to moving to a challenger bank, provided the rate is reasonably competitive, of course. Having said that, we do have other ISAs and FIBs with some of the challengers.

R.

[OldSkoolRS]

The Leaper said:

By chance, wife and I have three of our ISAs maturing in August and another in September, two with Nationwide. It will be good to get vastly improved interest rates going forward, whoever we place the maturity values with. I suspect we will simply roll them over with the current providers... in our view there's something to be said for remaining with a good household name as opposed to moving to a challenger bank, provided the rate is reasonably competitive, of course. Having said that, we do have other ISAs and FIBs with some of the challengers.

R.

Perhaps I'm being naïve, but if I had savings with a 'challenger' that has FSCS protection and was under £85k, then where is the harm? Some of the 'good household' rates seem pretty poor (though Nat West have been decent for 2 year fixes recently), so it's giving money away by sticking with them and their lower rates, but I appreciate that's a personal choice.

Having said that my main ISA is with Virgin and I'm just trying to find out how I could move it to their current deal and just take the hit on the penalty. They aren't considered a 'challenger' though I suppose.

[pingu393]

OldSkoolRS said:

Perhaps I'm being naïve, but if I had savings with a 'challenger' that has FSCS protection and was under £85k, then where is the harm? Some of the 'good household' rates seem pretty poor (though Nat West have been decent for 2 year fixes recently), so it's giving money away by sticking with them and their lower rates, but I appreciate that's a personal choice.

Having said that my main ISA is with Virgin and I'm just trying to find out how I could move it to their current deal and just take the hit on the penalty. They aren't considered a 'challenger' though I suppose.

Just because you say nice things about Nat West, I hope you don't think they won't close your account without warning

[alscar]

pingu393 said:

Just because you say nice things about Nat West, I hope you don't think they won't close your account without warning

Nat West's one year deals were until this year amongst the poorest and their previous system of insisting you had to also open another account just for the interest to get paid in was a pain - their ability to automatically issue a tax certificate appears also lacking.
OS ,maybe take a look at say RCI Bank ( very good online portal ) if Virgin don't play ball.

[OldSkoolRS]

Cheers guys; will do.

PS Not with Nat West, just noticed they were top of the best deal charts for 2 year fixes recently which surprised me.

[Penny Whistle]

Having just been blessed with the arrival of a grandchild, I'm looking at investment options for regular savings. Are there any savings accounts which are targeted specifically at JISAs?

[B9]

I deposited 20k into flexible ISA this tax year.
I subsequently withdrew it.
If I deposit the 20k back before tax year end.
Can I withdraw it again within days of the new tax year and still be able to put 40k in next year?

This would be in cash, not funds