2024/25 ISA allowances explained, including the new British ISA
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- Опубликовано: 10 июн 2024
- As we come to the end of the financial year, Andy goes through the changes to your ISA allowance for 2024/25 - including the new British ISA announced as part of the UK budget.
W A T C H N E X T
UK Budget announcement 2024
• Budget 2024: Another N...
Best Savings: March 2024 update
• BEST SAVINGS: March 20...
#isa #savings #investment
00:00 ISA allowance update for 2024/25
00:31 What is an ISA allowance?
01:29 What kind of ISA's are there?
02:17 How much can I put in to an ISA?
03:06 What changes are coming to ISA's in 2024?
05:20 What happens at the end of the year?
06:18 What about if you have money fixed in an ISA?
07:46 What happens if you don't use your ISA allowance?
08:16 What happens if you go over your ISA allowance?
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A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.
This was very clear, great video. Loved the part about transferring older ISAs.
Another new ISA feature in the next financial year is that you will be able to do partial transfers for money you put in THAT year, not just previous years. So you could, for example deposit 20k in one ISA from a regular bank account, then open a second ISA in the same tax year and transfer in 10k from the first ISA. Currently, you can only do partial transfers from funds you put in from previous years, This does make ISAs much more flexible than they are now.
Very informative, thankyou! From which type of ISA can we withdraw flexibly ?
In 2023, I opened a Zopa Easy Access Cash ISA account [5.08%] that I'm planning to put a lump sum before April 6, around £16,000, but I've also opened a Chip Cash ISA [5.1%] due to the slightly higher rate, all within 2023. My Plan is to use the Chip Cash ISA account going forward. Given the new rules taking effect in 2024, I should be ok right?
Hey, great video. In 2018 I opened two cash isas, one with coop, one with hsbc
Very minimal amounts going in and out
Is ths allowed and what do I do!?
I phoned hsbc and they said it was fine to have 2 like this!?
I have an isa that matures in October and is locked till then. I created the isa last October 2024, what would you recommend me to do? Can I add money for this year or open another isa ?
Can I invest let’s say 5k on cash ISA Halifax and the rest 15k on stock and shares ?in the same financial year ?
If you put 20k into a ISA will the interest effect my savings of that years or should I redirect the interest into another account?
I have a fixed cash ISA that is going to come to term just before the new financial year. Am I right in thinking that once the new financial year starts and I create a stocks and shares ISA, I can transfer the money from this 'finished' fixed cash ISA into the new stocks and shares one without consuming my £20,000 allowance? So hyperthetically I could put £40,000 into a brand new stocks and shares ISA in the new financial year?
Exactly right! But don’t just withdrawal
the funds and then deposit them into the new ISA, you have to TRANSFER it using the ISA transfer system.
Absolutely, transferring previous years doesn't affect the new financial year. I do this all the time.
Yup the absolute never do is withdrawing money from an ISA only ever transfer so it does count towards you 20k cap
1. Have opened one ISA account in HSBC ( LOY_ISA_Adv) ( In OCT 2023) and deposited 20000.00 GBP and withdraw 5000.00 GBP in March 2024 ?
2. I opened one more Cash ISA in NatWest in March 2023 and deposited 20000.00 GBP
3. Have opened one more ISA account and deposited 20000.00 GBP and withdraw all amount in one day in Halifax .
Here my question is can i have any tax issues or penalties from HMRC as i have two ISA accounts with 20000.00 GBP amount in each account ?
1. Have opened one ISA account in HSBC ( In OCT 2023) and deposited 20000.00 GBP and withdraw 5000.00 GBP in March 2024 ?
2. I opened one more Cash ISA in NatWest in March 2023 and deposited 20000.00 GBP
3. Have opened one more ISA account and deposited 20000.00 GBP and withdraw all amount in one day in Halifax .
Here my question is can i have any tax issues or penalties from HMRC as i have two ISA accounts with 20000.00 GBP amount in each account ?
Ive contributed to my lifetime ISA but also opened a cash ISA this year. Whats happens in this case?
Nothing that’s normal/fine.
As long as cumulatively the money you’ve added is not above the 20k allowance this financial year (eg 4k into the Lifetime ISA and 16k into the Cash ISA). Assuming also you’ve not added more than the 4k cap into your lifetime ISA, this financial year.
How can I transfer money to another bank account using debit card instead of bank transfer?
That is bank transfer. Do you mean going into the bank?
@@comfortzone5618 No, he said in the video about Halifax reward account that you can pay your chase bank using halifax debit card £500 and you get your £5 reward from Halifax but I don't understand how it's done exactly.
Can you tell me when can I withdraw the money? Lets say I have the same ISA for a few years and some money in there. Can I just withdraw it when I need ? Many thanks for sharing your knowledge!☺️
From my understanding you can withdraw it anytime Marta, but as the interest is paid on an annual basis you would forfeit the interest you would earn on that amount from date of withdrawal to end of ISA year.
Yes, the only time you can't is if you have a fixed rate ISA and you want to withdraw funds during the fixed rate period.
@@UKGeezeryou can still withdraw money from a fixed rate ISA, but you would have to withdraw it all and there will be a interest penalty. This is an advantage over a standard fixed rate account where you can't get the money ( well you can but only usually in extreme circumstance, such as you are terminally ill ).
@@DarrellThompson47 Yeah true, sorry I should have stated without incurring a penalty.
If I open ISA (A) for tax year 2023 to 2024, keep it open when the rates reduce after the first year, and then open a second, more competitive ISA (B) for tax year 2024 to 2025 with new money, can I add 'new' money into ISA (A) in the second year, separate from the £20,000 allowance for ISA (B)? Or do I just have to keep the existing amount originally put into ISA (A) and just let it accumulate?
It's 20000 across all ISAs, so you can add to either account as you wish until you run out of that allowance. It does not matter.
And yes each year you get 20000 refreshed so whatever happened last year does not matter, you can build on top of that as you wish.
£20,000 each year regardless of whether I opened the ISA a previous year? i.e. can you add more money to old ISAs beyond £20,000 new allowance?@@IAmebAdger
If I've read this correctly, I think the answer is no. If you add new money within a specific tax year to any ISA (new or old), it will count towards that year's allowance. You would have to keep the old money in ISA (A). But you may be better off sticking £20k in the new competitive ISA (B) and doing an ISA transfer of the money in old ISA (A) to take advantage of the new competitive rate
I have currently 20,000 in cash isa, can I transfer 4,000 to life isa before new tax year get the 1,000 bonus and then add another 4,000 to the 16,000 cash isa to have 20000 to new tax year ?
Only if you've not deposited any money in this year. The 20k deposit cap is renewable yearly.
If I put 20k into an isa today and 20k in another at the start of the new tax year do I pay tax on the previous year isa? Sorry just a bit confused.
As long as it's a cash ISA no tax to pay. Most say CASH ISA (TAXFREE) when opening
I have an 18 months Fixed Rate cash ISA with Skipton, which has another year to maturity. As I can't pay anymore money into it due to it being fixed, can I open another ISA with a different Building Society on 6 April?
Yes, you can. You can have as many ISA as you want, you just need to make sure you don't put more than £20,000 in total into them. So you could have 20 ISA, but you can only put £1,000 into each in one tax year.
Enjoy the extra £600-800 quid!
Hi does the interest after a year so if you had 20,000 at say 5% so £21,000 after a year
Does that mean you could transfer the 21k the following year into a new isa ?
I believe that there is no limit when it comes to an ISA transfer. You are just limited to putting £20k into it a year (or £20k split between a cash and a stocks ISA).
@@HenryWDavey so does the interest go into the following isa also, like round ups in the rbs/ natwest/ulster where it is not counted even though the limit is £150 per month
I'm no expert but I believe so. For example. Invest £20k in April 2023. At the end of the year your balance is £20k plus whatever interest (for ease, say £1k). You can then transfer that £21k to an ISA for 2024. So potentially you could invest a further £20k on the 6th of April and be getting interest on your £41k.
If I am wrong, please can someone correct me! 😆
@@HenryWDavey someone might I just don't know but what you just said was my assumption, thank you
Can I open two stocks & shares isa’s in 24/25 and pay into both of them?? 10k in each?
Yep!
Making partial transfers of previous tax years into a new provider is not cosidered to be a new Isa is it?
Even though it is a new Isa with a different provider using old money?
I'm not sure if partial transfer from old ISA is allowed as the provider close the old ISA when you request transfer, so all funds the old gets transferred. I know you can transfer your old ISA to the new ISA without affecting the new ISA allowance for example if you transfer 20K from your old ISA to your new ISA you're still allowed to put 20K to this new ISA so you have 40K even thought it will still count as 20K. Hope I made sense :)
The reason behind my question is if you have more than £85k guaranteed by financial instituitions how can you split this up to diversify your risk, without transferring maybe 5 or 10 years of contributions.
On the Isa transfer forms there is a box for partial transfers of previous years. @@BlessedPetrel
Partial transfers next financial year I believe but not this financial year.
Travelodge?
Lol!
Must have been a deal too good to miss. Being clever with your cash.
The "British ISA" is unlikely to happen. I don't think the incoming Labour government (which I welcome) will be too keen to increase the ISA allowances.