From: "anthony ab" 
Newsgroups: uk.finance
Subject: Re: newbie ISA confusion
Date: Wed, 5 Jul 2006 16:33:20 +0100


"Jonathan Bryce"  wrote in message 
news:dKmdncWCef5XUjbZRVnyjg@eclipse.net.uk...
> anthony ab wrote:
>
>> I 've taken out my first cash ISA  ( Direct ISA from the NS&I ) and put
>> the maximum £3000 in.
>>
>> Can someone clarify what will happen at end of financial year?
>>
>> Do I have to cash it in or can I keep that one going and then invest a
>> further £3000 in another? Or are you only ever allowed to hold one at any
>> one time?
>>
>> Please accept apoplogies for my ignorance in these matters :)
>
> You can cash it in at any time if you want, but then you lose that tax
> allowance for ever.
>
> Next year, you can put another £3k in to the same ISA or into a different
> ISA.  What you do with your existing ISA doesn't change that.


Thanks both for your replies.

So if I add a further £3000 next year to existing ISA ( which for arguments 
sake has become £3200 with tax free interest)

Does all the interest I earn on the combined £6200 remain tax free?

And the same for years 3 and 4 ?