Transfer ISA ownership - as a gift

stevep99

Could anyone help with this, I have been unable to find a definitive answer anywhere on the internet:

Is it possible for a person to transfer some or all of their ISA to a second person, i.e. as a gift? Obviously this would be possible if the money is withdrawn and then the recipient re-invests in a new ISA, but this method won't work of recipient has already used their ISA allowance. Is a transfer of ownership allowed?

Steve

turbobob

I would say this is highly unlikely to be allowed. Although as you said, you can cash in the ISA and give away the proceeds. The ISA contribution allowance per person is £7200 per tax year (up to £3600 in cash), end of. If you could transfer or give away allowances to someone else it would open up all sorts of dodgy possibilities...

There are in depth ISA rules here although its not exactly light reading - http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf or you could ask HMRC ISA Helpline on 0845 604 1701

Oblivion

I agree with turbobob's comment on this. An ISA is by definition an Individual Savings Account, and amongst the things that an individual has to declare on the application form is ... "I declare that all subscriptions made, and to be made, belong to me".

This would seem to imply that you cannot gift an existing ISA to someone else since this would mean that the subscriptions made no longer belonged to you.

Dave.

LittleVoice

stevep99 wrote: »

Could anyone help with this, I have been unable to find a definitive answer anywhere on the internet:

Is it possible for a person to transfer some or all of their ISA to a second person, i.e. as a gift? Obviously this would be possible if the money is withdrawn and then the recipient re-invests in a new ISA, but this method won't work of recipient has already used their ISA allowance. Is a transfer of ownership allowed?
.
Steve

Transfers of ownership are not allowed. (And why would you think that if a recipient had already maxed their individual entitlement for one year that somehow they would be allowed to have someone else's added to theirs if transfers of ownership were allowed?)

stevep99

Thanks for the replies, it kind of makes sense that it wouldn't be allowed when you think about it