We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Partial ISA transfers - is this correct?

I was aware that you could transfer part of a cash ISA into another existing cash or  new cash ISA with a different provider...

Now I thought this only every related to 'whole years' - so that your provider maintained an accounting 'separation' between each tax year's subs [and the interest thereon] and so you could only ever move the money as if each year was effectively in a different account.

But apparently it's fiendishly simple... if you want to transfer £100 to a new provider then [subject to particular account restrictions that have nothing to do with the rules for ISAs] you can just ask for that amount and they will 'transfer' it [usually by cheque!] by sending that amount to your new provider.

Of course you are still restricted by silly rules like:

You may not 'subscribe' to more than one ISA in any one tax year... and an 'initial' transfer would constitute an ISA subscription - whereas later transfers would just be 'transfers'.

So for instance, say you have £3000 in ISA 'A' from the year before last, and that you have £3000 in ISA 'B' from last year. You then add £3000 to ISA 'B' [your 'subscription'] at the start of this tax year, and then promptly ask the provider to 'transfer' £1500 of the money in 'B' into 'A' [because you really wanted to pay equal amounts into each account for some perverse reason - and ISA 'B' is instant access]

Now the '£1500' in this example must come from a non current tax year - which it can because £3000 was put in LAST year, and only £1500 of that is being asked for.

My question really is - is this correct information does anyone know, as it comes from the ISA adviser at Nationwide BS H.O. and they are deemed a 'specialist' unit?

Thanks in advance
.....under construction.... COVID is a [discontinued] scam

Comments

  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    Hi

    Yes you can part transfer past year cash isas. The current year ISA has to be transferred whole.

    Now, not all ISA provider's accept transfers IN.
  • isasmurf
    isasmurf Posts: 1,998 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'm not sure the following is true -
    You may not 'subscribe' to more than one ISA in any one tax year... and an 'initial' transfer would constitute an ISA subscription - whereas later transfers would just be 'transfers'.
    I think any transfer is counted as just that, a transfer, and does not count towards your 'one-ISA-per-year' rule. Subscriptions usually mean new money going into a ISA. I found out recently that you can open an ISA in Year A, but providing you put no money into it until Year B it counts towards your Year B ISA.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.9K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.