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Posted Sun, 23 Jun 2024 22:19:52 GMT by KC
Hello HMRC, I have tried to look for an answer from the HMRC website but still a bit confused on something about ISA. I had my first ever ISA account (Account A) opened in 18/6/2023 (in Tax year 23 - 24). Fund deposited £20,000. Account A was already matured in 18/6/2024. Interest received was £802.2 over the term. Total fund in Account A becomes £20,802.2. Account A was kept after 18/6/2024 for a few more days and more interest has been generated so the fund in Account A becomes £20,850. My understanding is, if I now open a new Cash ISA account (Account B) (in Tax year 24-25), I can transfer all the funds £20,850 from Account A (opened in Tax year 23-24). At the same time, I can also open one more new Cash ISA account (Account C) and deposit another fresh £20,000 max to Account C for the Tax 24-25 allowance. The interests to be earned from Account B and C will be tax free. i.e. each year we can deposit "fresh" funds to new ISA accounts according to the tax year allowance. Previous ISA account can be kept running or be transferred to a new ISA account. While the interests earned in those "old" ISA accounts are still tax free. Please kindly review and see if my understanding is correct. Thank you very much.
Posted Thu, 27 Jun 2024 09:49:18 GMT by HMRC Admin 25 Response
Hi KC,
You are correct.
Interest generated in the ISA does not count as a deposit by you.
Thank you. 

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