You can't delete the account but you can get the name on another account but it'll cost you 800 to 1600msp to do it.
Briefly this is how.
First you'd need to change the name on your current account, this free it up. 800msp down.
Now if your new account already exists then you'll have to pay another 800msp to change it's name to the now free one from your original account. 1600msp it total.
If the new account does not yet exist you can save some points. Since gamertags are assigned randomly during creation now, you can change it once for free. So in that case use the free change to use the free name from step one.
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