ISA question

[Nessanewyear]

I have a number of existing cash ISAs which mature in April and May this year. I also want to open up a completely new cash ISA once the new tax year starts and will pay in the full £20k.

I’m assuming that if I transfer the existing ISAS on maturity to another product by a different bank, transfers will not be seen as opening a new ISA? That is, the three transfers I will be making will not stop me opening a new ISA for 25-26 tax year?

Also, do I transfer on the day after they mature or can I set up the transfer before this and if so, how?

Finally, I would like to draw off the interest they’ve gained and stick it in a savings account to put towards a new car. Will I pay tax on this if I do this?

Transfers in do not count as new money for the £20,000 allowance for 25/26 but you must transfer in and not withdraw and pay in.

when you open your new ISA there should be an option to create a transfer request - usually a form to download/ fill in online. On the ones I have filled in there are different options - usually one saying that you want to transfer it once it has matured. You may need to check how soon after opening your new ISA the transfer in needs to happen.
Also check what happens if you don't request the transfer before maturity - I had one that rolled into another fixed rate and I only had 14 days to transfer it elsewhere.

You don't have to transfer the whole balance, so you could leave the interest and withdraw that on maturity.
No tax to pay on the interest accrued in the ISA.

Thanks @Amoneyone- that’s very helpful . Do I transfer in once their deadline’s up (1 will be before 6 April; one after and 1 in May). Does it matter when I do it? Can I just wait until the May one matures and then transfer them all at once into the same ISA?

Timing might be an issue - it depends!

You don't need to worry about tax years if you are just transferring.

I think you can probably open the new ISA a week or so before the first one matures, then do the transfer forms for all 3 (getting the form to the first one to mature before the maturity date) but say that you want them to transfer in on maturity - check though as some won't do that if maturity is more than 30 days away. If it is fixed rate you might not be able to transfer in after the initial opening period - again, check.

Otherwise check where your first one automatically matures - you could just let it roll into a lower paying account for a few days and then transfer from there as above.

I'm planning on doing the same. I've printed out the form, ready to post, from my new provider giving them permission to request the cash transfer from my existing provider. The anniversary date is the 6th April and I'm expecting a short delay between opening my new ISA and the transfer. Apparently the old ISA money will go in a maturity account until it's requested (v low interest but still protected by the ISA wrapper). I'm confident it will go smoothly 😄!