Question about transferring ISA's

Lokolo_2

Draig_Goch wrote: »

Don't withdraw the money and then go to a new bank / building society to pay it in. Go to them first and ask for an External ISA Transfer Form (or whatever their name for it may be). This should enable you to transfer the funds to the new account without losing your allowance for that year.

If you had read Squawky's previous post, you would have understood that the ISA account he/she wants to open with Santander, does NOT allow transfers in.

lisyloo

Santader are rubbish.

Why not transfer to someone else that accepts transfers in?
Haifax even pay interest whilst you are waiting (2.8%).

blueberrypie

Soliton wrote: »

Warning: If you have paid money into the current ISA this year (2010/11) you cannot open the new ISA and pay money into in 2010/11 as well, you would have to wait for the next tax year (2011/12).

You can do a self-transfer as long as you follow certain rules, and you only do it once in a tax year. See http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf

...where
• the investor subscribes to two cash ISAs, in the same tax year, and
• subscriptions to the first ISA subscribed to were valid, and
• the first ISA subscribed to was closed (see paragraph 12.33) before
subscriptions to the second ISA were made
the subscriptions to the second ISA may be valid (see paragraph 12.32a).
12.32a The first cash ISA to be self-transferred in tax year is valid, and need not be
repaired.
The second (and any subsequent) self-transferred cash ISA is not valid and is not
eligible for repair.

Mikeyorks

[quote=[Deleted User];41281398]So I could I withdraw the total amount, (say £1000), close the current instant access ISA then open up a new instant access ISA and deposit the £1000 without waiting until April 6th?
[/QUOTE]

Yes - you can do that. It's known as 'self transfer'.

BUT .......... as you are effectively doing this within Santander they are likely to block it, as their records will show you have already contributed to a different ISA with them during this year.

You can try it ........ if it fails (their local knowledge of self transfer will be zero) ..... walk down to Halifax and open theirs at 2.8%