ISA transfer / subscription question

Jumping_Bean

Hi,

Can I transfer funds from an existing ISA (Subscribed to last tax year) to a new ISA and also open another ISA for new funds in the same tax year?

Thanks for your help.

JB

GreyPilgrim

Providing you let the provider you want to transfer the old ISA to handle the transfer yes, thats fine. Don't withdraw the money yourself and try to open a new ISA with it.

And providing that the new provider isn't Nationwide it should all go smoothly. If it is Nationwide, you'll spend a fruitless 4 months trying to sort of the mess.

GP

Jumping_Bean

Thanks for the reply. Just to clarify... I can open 2 ISAs in a tax year as long as I only put NEW funds into one of them. Yeah?

Jumping_Bean

Anyone? Just want to make sure I understand correctly. Thanks.

Oblivion

Jumping_Bean wrote: »

Thanks for the reply. Just to clarify... I can open 2 ISAs in a tax year as long as I only put NEW funds into one of them. Yeah?

If you are only talking about Cash ISAs, then you understand correctly. You can only subscribe (deposit) to one cash ISA in any tax year, but you can open as many ISAs as you like for the purposes of transferring ISAs, since a transfer does not count as 'new' money.

If you are looking beyond just Cash ISAs, the rules do allow you to subscribe to two separate ISAs in any tax year ... one must be a Cash ISA and the other must be a Stocks & Shares ISA, and they can be with the same or different providers. You can put up to £7,200 in a S&S ISA in any tax year, or you can choose to put any amount up to £3,600 (the maximum) in a Cash ISA and the balance into a S&S ISA.

Dave.