Transferring ISA T&C's/"2nd account"

I think what isasmurf is right but I got a bit confused reading it (I'm easily confused).

You can transfer your existing ISAs to new providers whenever you want. This does not use up your allowance. Don't withdraw the money, or you can't put it back, tell the companies you want to transfer.

In your case you have already used up your allowance this year so you can not add any more money until next tax year. Then you will be able to either add it to your existing ISA or open a new one with somebody else if you prefer.

I'm sure isasmurf must be correct where he says:

"You can still transfer the whole balance over to the new provider. This will also transfer your 'one ISA per year allowance', i.e. all your subscriptions will be recognised as been made in your new ISA and this is the only one you will be allowed to subscribe to in this tax year."

I had thought that the rules [the Inland Revenue ones] were:

a. You may transfer any part of an existing subscription to another provider.
b. This is a transfer and does not qualify as a subscription.
c. You must not subscribe to more than one [mini cash] ISA in the same year.

From 'b' and 'c' above it follows that you cannot part subscribe [say £1500] into ISA 'A' then transfer 'A' to ISA 'B' and then further subscribe [say £1500] to 'B'

From 'a' it follows that you can transfer part of 'A' to 'B' without closing or transferring the rest of 'A'. So you will have two [mini cash] ISAs instead of one. But you can then only subscribe to 'A' or 'B' [not both] or another ISA altogether in any subsequent tax year.

Can I ask isasmurf to check this is correct or have I overstated something?

BTW -on the subject of transfers- I have an ISA with Nationwide and also a TOISA [which counts as in ISA] with them. The TOISA is in a passbook and they won't amalgamate the balance with their annual subscription ISA. But they will transfer the TOISA out, of course, and will transfer back in from other ISA providers.

If I ask another ISA provider to accept a TOISA transfer and then ask Nationwide to accept an ISA transfer straight back in they would have to amalgamate the balance wouldn't they?

Paul_Herring wrote:

Anyway, the problem that prompted the thread was the T&C's of A&L's scheme which required me to state that I hadn't had a subscription this year. Which I had. The fact that I was wanting to transfer it doesn't matter - there weren't any clauses in the T&C's to cover this stituation. (In fact the T&C's in general seemed rather sloppily written - there were two identical clauses on the same section! - I'd quote them but don't have a local copy at the moment.)

I have already put £3k into a Nationwide Members ISA for 04/05 (currently 5.15% with 60 days notice). I was considering transferring to A&L because I now have my current account with them and I would prefer instant access.

I am put off by the £25 transferring out fee, what you mention above and the fact the minimum balance is £1 (that definitely is a no-no for this tax year because of the £3k already to Nationwide).

I might email them via Online Banking and see if they would still be willing to accept the incoming transfer, despite what their conditions say.

A&L confirm the account is opened with a £0 balance so transfers from existing providers can be made where £3K has already been subscribed.

In addition you can open the account if you have already subscribed to a mini-cash ISA in this tax year. The T&C's state you will not subscribe to your A&L ISA in the same tax year, which is fair enough.