How will my tax free ISA allowance be protected following the ICesave collapse. Normally if you want to tranfer an ISA without losing the ISA status the new bank/building society needs tol contant the current holder of the Isa and arrange tranfers between the banks. If Icesave do payout existing ISA holders will we lose our tax free status?

You certainly should not accept loss of ISA status without making a fuss. Hopefully once a liquidator has been appointed, provisions will be made to transfer things to other ISA providers You will need to contact the liquidator and state your preferences in due course..