I started a Cash ISA account on 12th June 2024 but am unsure as to whether I need to transfer the money in the account to another account before the end of this tax year (5th April 2025) in order to retain the tax free interest allowance. Can anyone clarify?
Hi @PhilL. Transfers of an ISA has no impact on your ISA allowance so if the transfer rolls into the next financial year you will still keep your full allowance for that year. That only applies if you transfer the funds. Withdrawing the funds and paying them into another account would count towards your subscription.
Hi @krr13 thanks for your response. I’m new to all this & just trying to be 100% clear here. So, having opened a Cash ISA last June, if I don’t do anything on April 5th & just leave it in Trading 212 earning interest, that earnt interest after 5th April won’t be liable to tax?
FYI I understand that it wont count towards my 25/26 allowance as the allowance is reset on 6th April.
Sorry for all the questions but as mentioned previously, I’m new to all this & am aware that there’s only 15 working days left till the end of the tax year so if I do need to transfer it, I’d have to do in today.
If you could just confirm my thinking here that would be much appreciated.
No problem - it can be confusing 
Any interest you earn in a cash ISA is exempt from interest so you can just forget about tax on the interest from this account.
And with regards to transferring or not, whatever you decide to do (leave it or move it) will have no impact on your allowance.
Does that make sense?
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Thanks for confirming @krr13