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ISA Transfers

Last post Fri, May 25 2007, 2:49 PM by NikkyWikky. 2 replies.
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  •  Fri, May 25 2007, 2:49 PM

    Re: ISA Transfers

    "You don't need to transfer your entire cash ISA either, unless it's money that counts towards this year's tax allowance. This has to be transferred in its entirety. "

     I've just put in 3K in for this tax year(2007-2008) to give me total of 9K. Is it possible to transfer the whole 9k (including the 3K for this tax year) into another ISA account that accepts transfers in.

    • Post Points: 5
  •  Thu, May 17 2007, 3:45 PM

    Re: ISA Transfers

    Switching between ISAs should be straightforward. As some providers don’t allow transfers in, first check that you can move your money to the new provider and that there aren't any penalties for leaving your existing provider. Once you're happy that you won't get stung for transferring, contact the new provider. They will give you an ISA transfer form to complete, which will include details of your current provider. Once they have these details they'll contact the provider and request the transfer on your behalf. Whatever you do – don’t withdraw the cash, once outside of the ISA wrapper you will not be able to reinvest.

    It should take less than a month for your money to turn up in your new cash ISA and many providers will pay you interest from the day your money leaves your old ISA provider so you're not out of pocket.

    You don't need to transfer your entire cash ISA either, unless it's money that counts towards this year's tax allowance. This has to be transferred in its entirety.

    With previous years' ISA money you are free to divide it between providers. So, for example, if you paid £3,000 into an ISA two years ago you could transfer £1,500 into one ISA and the remaining balance into another.
    • Post Points: 20
  •  Thu, May 17 2007, 1:27 PM

    ISA Transfers

    I am getting contradictory opinions regarding transferring previous years ISAs. I have over £30,000 worth of previous years ISAs all bundled into one variable rate ISA. I have been told that I can only transfer £3,000 or the whole amount to another provider if I want to maintain its ISA status. Is this correct as I would like to take advantage of better rate ISAs that may be offered later in this tax year by transfering various amounts from this £30,000 to other providers? If this is relevant, I have already taken out a £3,000 cash ISA for the current 07-08 tax year. I have been told that if I do transfer a variable amount the remainder would no longer be held under the ISA tax free status. Please can you explain the rules regarding the transfer of previous years ISA funds. Many thanks
    • Post Points: 20