Transfer to natwest e-ISA

venkat12

Kavanne wrote: »

Are they telling you just to do the transfer via online banking!?

yes,that is correct- to transfer online

Kavanne

venkat12 wrote: »

yes,that is correct- to transfer online

i would not do that. you know, just if I were you.

alanwsg

Kavanne wrote: »

i would not do that. you know, just if I were you.

why wouldn't you do that?

Baldur

alanwsg wrote: »

why wouldn't you do that?

The HMRC guidelines require an ISA transfer form to be completed and the transfer to be carried out by the provider, not the account holder, in order to retain the tax-free ISA status..

Kavanne

Baldur wrote: »

The HMRC guidelines require an ISA transfer form to be completed and the transfer to be carried out by the provider, not the account holder, in order to retain the tax-free ISA status..

Bingo.....

alanwsg

Does that still apply if I'm transfering between two accounts with the same provider?
i.e. I already have a cash ISA with NatWest and I want to xfer it into their E-ISA as it's a better rate.

Baldur

alanwsg wrote: »

Does that still apply if I'm transfering between two accounts with the same provider?
i.e. I already have a cash ISA with NatWest and I want to xfer it into their E-ISA as it's a better rate.

The HMRC guidelines don't make any distinction, from memory, I'd play it safe and do it the correct way, rather than risking the loss of the tax-free status.

zedyy

Im in the same situation. but I'd like to transfer from llyods to natwest e-ISA, my only worry is that it takes 30 days to complete the transfer so it'll be the new tax year 09/10 when the money is transferred (today is 26/03/09). does this mean i cannot use up my allowance for the 09/10 tax year???

Baldur

zedyy wrote: »

Im in the same situation. but I'd like to transfer from llyods to natwest e-ISA, my only worry is that it takes 30 days to complete the transfer so it'll be the new tax years when the money is transferred. does this mean i cannot use up my allowance for the 09/10 tax year???

No, transfers are irrelevant as far as the annual ISA allowance is concerned and can be carried out at any time (i.e. are not tax year dependant).

gwapenut

If I just want to transfer money into the e-isa but use this years allowance with another provider, is this possible? The procedure for a transfer is to open the e-ISA then do the transfer request.

I know you can contribute to just one cash ISA per tax year, but does opening the natwest e-isa with zero balance (ticking the contribute £1 by post box) then take away your right to open a non-transfer ISA with another provider this year (First direct 7% monthly saver in my case)?