There are a number of reasons a person may want to transfer an ISA, such as finding they could achieve a better interest rate with a different provider or to consolidate your money together to make it easier to manage, however it is important to try and ensure you follow the correct transfer process so as not to miss out on some of your annual ISA allowance.
All ISAs have to allow you to transfer to another provider, but they may impose a penalty for doing so. However providers do not have to allow transfers in. Once you have found an ISA you would like to switch to and checked that it permits transfers then you will need to complete and send the ISA transfer form, you’re new and previous ISA providers will then arrange for the ISA transfer to happen, once transferred the previous ISA manager will give the new ISA manager a written notice containing information and a declaration which is known as a transfer history form, your new provider will contact you once the transfer is complete.
It is now possible to transfer from between different ISA types for example from a Cash ISA into a Stocks and Shares ISA or vice versa. When transferring between from a Cash ISA into another Cash ISA the process should be completed within 15 working days.
Industry guidelines currently recommend that the transfer process when involving Stocks and Shares ISAs should take 30 days from start to finish. But as this kind of ISA can include a range of different investments each potentially taking different amounts of time to close or sell it could take longer than 30 days for a provider to prepare the money within the account to be transferred.
It is a good idea to shop around to try and find the best product for needs. If your current ISA provider would impose a penalty for transferring and you are moving to another provider to achieve a better rate of interest on your savings then you may wish to first work out if the penalty would negate the potential benefits of changing provider.
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
21st March 2019
Each tax year, there's a limit set by the government to the amount you can save and invest in ISAs: your “annual ISA allowance”. The allowances are intended to reward savers and encourage us to invest more to support our future retirements, without creating a tax haven that can be taken advantage of by very wealthy individuals who just want to avoid paying tax.
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