It is possible to transfer ISAs from one manager to another; however, there are several points to be aware of.
- It is possible to transfer from a cash ISA to a stocks and shares ISA, but not the other way around in an adult ISA. This was introduced in 2008/2009. A JISA can go in both directions.
- Whether the original contributions were made to a maxi ISA or a mini ISA has no effect on transfer.
- The transfer must be done between the managers. If a saver transfers the money manually, it will be treated as a withdrawal and they cannot invest this in an ISA if their subscription limit has already been reached.
- As an aid to those who transfer by withdrawing money paid in during the tax year and redepositing by mistake, HMRC allows a single cash self-transfer per year. All money must be removed from the source account and the account closed. HMRC will then consider it an innocent self-transfer and forgive the error, treating it as if the money had never been paid in. The maximum that can be redeposited is still subject to the annual limit, so if past years' money is withdrawn it may not be possible to redeposit it all.
- When transferring it is still necessary to comply with the rule that you can have only one cash ISA and one S&S ISA open at the same time with money paid in from the current tax year. Transfer of cash ISA money paid in during the current year must be all of the money if it is to another cash ISA. If the transfer is from cash to S&S the transfer can be partial but must be to either the first S&S ISA of the year or to the one that current year money has already been paid in to. After the transfer to S&S the money counts against the S&S limit, not the cash limit.
- You can transfer from a cash ISA to a S&S ISA then withdraw the money from the S&S ISA and redeposit some or all the money into another cash ISA. This allows you to circumvent "new money only" restrictions imposed by some cash ISAs that will not accept transfers in.
- Cash within a TOISA is treated as a cash component, and can be transferred to a "normal" cash ISA.
Read more about this topic: Individual Savings Account
Famous quotes containing the words rules and/or transfer:
“Under the rules of a society that cannot distinguish between profit and profiteering, between money defined as necessity and money defined as luxury, murder is occasionally obligatory and always permissible.”
—Lewis H. Lapham (b. 1935)
“I have proceeded ... to prevent the lapse from ... the point of blending between wakefulness and sleep.... Not ... that I can render the point more than a pointbut that I can startle myself ... into wakefulnessand thus transfer the point ... into the realm of Memoryconvey its impressions,... to a situation where ... I can survey them with the eye of analysis.”
—Edgar Allan Poe (18091849)