|
|
Post by geofft on Mar 29, 2023 10:32:55 GMT
I'm aware that you can only fund one ifisa (with new money) per tax year but my query is - does reinvesting interest back into an existing ifisa count as being 'funded' and bar you from funding another?
Been googling this but can't find a definitive answer....
Edit: I should clarify this by saying interest that's manually reinvested back, not on an 'auto-invest' basis.
|
|
Greenwood2
Member of DD Central
Posts: 4,251
Likes: 2,694
|
Post by Greenwood2 on Mar 29, 2023 10:54:04 GMT
I'm aware that you can only fund one ifisa (with new money) per tax year but my query is - does reinvesting interest back into an existing ifisa count as being 'funded' and bar you from funding another? Been googling this but can't find a definitive answer.... Edit: I should clarify this by saying interest that's manually reinvested back, not on an 'auto-invest' basis. AFAIA. If it's flexible you can put back what you took out in the current financial year. Your IFISA account should show you how much you can still pay in this year, ie, if you paid in £20,000 and took out £1,000, it should say you can still pay in £1,000. If it's not flexible no. Edit: Loanpad is flexible and I've been taking out interest, which I have just put back in before the end of the financial year. So I hope I'm right! It doesn't show as me over subscribing.
|
|
|
|
Post by overthehill on Mar 29, 2023 11:12:56 GMT
I'm aware that you can only fund one ifisa (with new money) per tax year but my query is - does reinvesting interest back into an existing ifisa count as being 'funded' and bar you from funding another? Been googling this but can't find a definitive answer.... Edit: I should clarify this by saying interest that's manually reinvested back, not on an 'auto-invest' basis. AFAIA. If it's flexible you can put back what you took out in the current financial year. Your IFISA account should show you how much you can still pay in this year, ie, if you paid in £20,000 and took out £1,000, it should say you can still pay in £1,000. If it's not flexible no. Edit: Loanpad is flexible and I've been taking out interest, which I have just put back in before the end of the financial year. So I hope I'm right! It doesn't show as me over subscribing. correct.
|
|
|
|
Post by geofft on Mar 29, 2023 11:18:03 GMT
I'm thinking of the situation where interest from an ifisa is paid into your cash account and then manually funded back into the same ifisa, but in a new tax year.
I'm beginning to think now that this must count as new funding and prevent funding another in the same tax year. So presumably choosing to autoinvest is ok as the interest doesn't leave the account before being reinvested back in?
|
|
|
|
Post by Ace on Mar 29, 2023 12:10:58 GMT
I'm thinking of the situation where interest from an ifisa is paid into your cash account and then manually funded back into the same ifisa, but in a new tax year. I'm beginning to think now that this must count as new funding and prevent funding another in the same tax year. So presumably choosing to autoinvest is ok as the interest doesn't leave the account before being reinvested back in? It depends on whether the "cash account" you're referring to is one within the ISA or not. 1. If it's an account like Loanpad (and most others) where interest is paid from your loans into a cash account within the ISA, then the cash never left the ISA, so can be reinvested without using this year's allowance. 2. If the interest was paid to a cash account outside of the ISA, then it can only be replaced without using this year's allowance if the ISA is a flexible one. EDIT. Just reread your question. Sentence 2 does not apply to you since the cash was not replaced within the same tax year. Sentence 1 would still apply if the cash account was within the ISA wrapper.
|
|
|
|
Post by geofft on Mar 29, 2023 12:30:51 GMT
I'm thinking of the situation where interest from an ifisa is paid into your cash account and then manually funded back into the same ifisa, but in a new tax year. I'm beginning to think now that this must count as new funding and prevent funding another in the same tax year. So presumably choosing to autoinvest is ok as the interest doesn't leave the account before being reinvested back in? It depends on whether the "cash account" you're referring to is one within the ISA or not. 1. If it's an account like Loanpad (and most others) where interest is paid from your loans into a cash account within the ISA, then the cash never left the ISA, so can be reinvested without using this year's allowance. 2. If the interest was paid to a cash account outside of the ISA, then it can only be replaced without using this year's allowance if the ISA is a flexible one. EDIT. Just reread your question. The sentence 2 does not apply to you since the cash was not replaced within the same tax year. Sentence 1 would still apply if the cash account was within the ISA wrapped. Thanks Ace, looks like you've cleared up my confusion. I was really referring to my Invest&Fund account - now I look more closely at it I realise that the cash fund is retained within the ISA account so it's doesn't become 'new money' in a new tax year. I seem to have an increasing propensity to confuse myself these days.... 
|
|
