Transfer Rules: Moving your Money from one ISA to Another

22-Nov-2009

Transferring within the current Tax Year

If you have money saved up from this tax year and you find a better deal at another provider, you can move money from a Cash ISA to another Cash ISA. However, if you are doing this, you must move the full amount at the same time, and you must move the full amount to the same provider.

-->> Click here to get an unsecured loan today.<<---

If you have money in a Cash ISA for this year and you would prefer to use it for Stocks and Shares, you can move the money from a Cash ISA to a Stocks and Shares ISA.  However, again, you have to transfer the full amount at the point of transfer, and you cannot split the amount between providers.

You cannot invest in more than one Stocks and Shares ISA and one Cash ISA in the same tax year.  You cannot ever move money from a Stocks and Shares ISA to a Cash ISA.  

Transferring money from previous Tax Years

If you have money saved up in a Cash ISA or a Stocks and Shares ISA from a previous year, you can move it to a new provider (or stick to your current provider) without affecting any of this year's allowance. For example, if you have £2,000 in a Cash ISA from last year, you can keep it where it is or move it, and continue to earn tax-free interest on that £2,000 whilst keeping your £3,600 allowance for this year (or £5,200 if you are over 50).  

This applies to every tax year in which you have had money saved, so you can continue looking for good deals for your money after each tax year has passed. The above rules apply, so you can transfer a Cash ISA to another one, or to a Stocks and Shares ISA, but cannot transfer Stocks and Shares into cash.  If you're transferring an 'old' Cash ISA however, you can split the money between a number of providers.

General ISA Transfer Information

When you have found a better deal and would like to move your money or investments to a new provider, you will need to go to the new provider and ask for them to arrange the transfer.  Your current provider may charge you to transfer the ISA, so you should always check the terms and conditions before taking out an ISA to see if this is the case.

You can have any additional questions about ISAs answered by calling the HM Revenue and Customs helpline on 0845 604 1701 (and then choosing option 2) on weekdays.