Transfer from existing ISA to new one

Owl14

I have just over £12,000 in a Fidelity ISA (I think it started life as a Tessa, but I'm not sure). I would like to transfer it out - ideally in part to a Cash ISA offering decent rate - £5,100 I think is the limit. Then some of the balance to a shares ISA - up to a further £5,100 - is that right? But I'd like to retain some of it in cash. Can I do all this in one year? I've been looking at Principality for the cash ISA as they seem to offer good rates. Not sure, though about the shares ISA. Any advice appreciated.

Baldur

Owl14 wrote: »

I have just over £12,000 in a Fidelity ISA (I think it started life as a Tessa, but I'm not sure). I would like to transfer it out - ideally in part to a Cash ISA offering decent rate - £5,100 I think is the limit. Then some of the balance to a shares ISA - up to a further £5,100 - is that right? But I'd like to retain some of it in cash. Can I do all this in one year? I've been looking at Principality for the cash ISA as they seem to offer good rates. Not sure, though about the shares ISA. Any advice appreciated.

Cash ISAs can be transferred to Stocks & Shares ISAs but not the other way round.

<Edit> See http://www.hmrc.gov.uk/isa/faqs.htm

Switching from one ISA manager to another

......Subscriptions to a stocks and shares ISA can only be transferred to another stocks and shares ISA. However, subscriptions to a cash ISA can be transferred to another cash ISA, or to a stocks and shares ISA.

jimjames

Owl14 wrote: »

I have just over £12,000 in a Fidelity ISA (I think it started life as a Tessa, but I'm not sure). I would like to transfer it out - ideally in part to a Cash ISA offering decent rate - £5,100 I think is the limit. Then some of the balance to a shares ISA - up to a further £5,100 - is that right? But I'd like to retain some of it in cash. Can I do all this in one year? I've been looking at Principality for the cash ISA as they seem to offer good rates. Not sure, though about the shares ISA. Any advice appreciated.

Thats something you'd need to clarify. If it started out as a TESSA then it is potentially still a cash ISA depending how you transferred it to Fidelity and if you kept it in their cash fund not shares or bonds.

You need to check which it is as above you can only move cash to shares ISA and not the other way round.

Baldur

jimjames wrote: »

Thats something you'd need to clarify. If it started out as a TESSA then it is potentially still a cash ISA depending how you transferred it to Fidelity and if you kept it in their cash fund not shares or bonds.

You need to check which it is as above you can only move cash to shares ISA and not the other way round.

If it transpires that the Fidelity ISA is a Cash ISA, the whole balance can be transferred to any new ISA provider that accepts inward transfers, either as a £12,000 Cash ISA, a £12,000 S&S ISA or a mixture of both types.

The £5,100 annual subscription limit for Cash ISAs only applies to new money, not to ISA transfers.

ISA transfers must be carried out by your chosen new provider, you instruct them do do so by completing their ISA transfer form.

lmn44

I've recently transferred my cash ISA to Principality and have been really pleased with the service so far. Their online area is great as you don't need to sit in a phone queue to sort stuff out. Only thing I would say is that they didn't make it clear I had to do a one-off transfer into the new ISA account to kick-start the direct debits, but i've done that now and it's all up and running.