ISA manager transfer suppression

Ogre_De_Flamme

My current cash ISA provider will not transfer my instant access ISA to another manager.
Can anyone point to HMRC rules which allow them to do this ?

Submissions to include answers only please.

ffacoffipawb

Ogre_De_Flamme wrote: »

My current cash ISA provider will not transfer my instant access ISA to another manager.
Can anyone point to HMRC rules which allow them to do this ?

Submissions to include answers only please.

They can't - they are telling porkies ....

http://www.hmrc.gov.uk/isa/transfer-isa.htm

Investors can transfer their ISAs from one manager to another whenever they want. They may transfer

• their current year ISA subscriptions (and any related income) and/or
• all or part of their previous years ISA subscriptions (and any related income).

Also see section 11.1 and 11.2 here

http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf

Transferring an ISA
11.1 Investors have the right to transfer their ISAs whenever you want and this right must be included in the manager’s ISA terms and conditions (see paragraph 4.30). They do this by making a Transfer Application to the new manager (paragraph 11.15a); they cannot transfer an ISA by closing it and paying the proceeds into a new ISA with the new ISA manager. However, ISA managers are not obliged to accept transfers in.

11.2 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.

Lokolo

This is assuming the money is not tied up in a fixed rate term.

ManAtHome

Are you asking them to move the cash (which they can't do), or are they refusing a transfer request from your new provider?

ffacoffipawb

Lokolo wrote: »

This is assuming the money is not tied up in a fixed rate term.

But HMRC say: "Investors can transfer their ISAs from one manager to another whenever they want."

No mention of a fixed rate ISA.

I think these must have a get out clause. My Lloyds TSB 2.9% 2 year fix was transferred to Birmingham Midshires (see sig) on paying a 160 day interest penalty. I will be break even on my decision to transfer by December and will have over 4 years to enjoy the 5% fixed rate (which incidentally has a 365 day interest penalty to transfer out in year one).

dunstonh

But HMRC say: "Investors can transfer their ISAs from one manager to another whenever they want."

No mention of a fixed rate ISA.

Some fixed term deposits cannot be accessed even with penalty. effectively they can only pay out on death. So, if it is one of those, then the ISA cannot be transferred until the fixed term has ended.

MarkyMarkD

ISA providers are not allowed to block transfers as dunstonh suggests. They must allow transfers, although they can levy an early closure/transfer out charge which is as big as they please which could effectively block transfers out (by making them uneconomic).

Rather than including bossy instructions such as "Submissions to include answers only please" it would be helpful if the OP explained how they had requested the transfer, and what exact wording their existing provider had used in response.

jamesd

If you asked the existing manager to transfer to another one, that was the wrong thing to do. You should be contacting the new manager instead and asking them to transfer from the old one. So your old manager may just be telling you to do it the other way around, not outright refusing to allow a transfer out. The remedy is to do it the right way around.