ISA Transfer

monki_man

Evening,

I have read up on Martin's ISa article on transfer which suggest you can not make more than one transfer per tax year...

"You can only have a Mini Cash ISA with one provider in any tax year"

However, when i asked about transfering my ISA with A&L to First direct, they told me i can do unlimited transfer in a tax year, however if i have depositde £3k this tax year, i can not longer put any in. To be honest, i only want to move it to a higher rate and i know First Direct doesn't pay the highest interest rate.

anynoe help me?

Sillychuckie

First direct are correct.
Your quote from Martin, is incorrect.

You can have as many as you want, provided the total investment each tax year (across all of them) does not exceed the 3k limit.
This 'investment' mentioned above does NOT include transfers from previous years. Previous years investments can be transferred as often as you like and be held in as many ISA's as you wish. You can also top these up but once again, only if you keep within the 3k annual threshold for new investment.

Milarky

Sillychuckie wrote:

You can have as many as you want, provided the total investment each tax year (across all of them) does not exceed the 3k limit.

This part is incorrect: you can move your annual allowance from one single provider to a different single provider as many times as you wish but the current year's subscription must always be with the one provider at any one time.

eg

1stDirect(1).............Abbey(2)............................Halifax(3)...........................1stDirect(4)
£1000 (in) -- Tfr --> £1000 + £1000 (in) -- Tfr --> £2000 + £1000 (in) -- Tfr --> £3000

[Here the money has built up to a years allowance in three stages and ends up where it started - but has remained intact throughout]

monki_man

I'm all Confused now, let me take you to my real example...

June 04 - Opened Halifax ISA and had £1k
06Apr05 - Transfered my Halifax to First direct and then placed £3k.
May 06 - Transfered £4k+interest from FD > A&L and topped it up by £3k.

My question is, i have maximised this year's top up. Can i transfer my A&L ISA with £7k+interest into say HSBC this month?

sad_ken_2

monki_man wrote:

My question is, i have maximised this year's top up. Can i transfer my A&L ISA with £7k+interest into say HSBC this month?

Yes. I've just done this myself.

Now33

sad_ken wrote:

Yes. I've just done this myself.

How does the transfer work? Presumably you need to get a form from your existing ISA provider to prove that the investment transferred relates to a previous year?

masonic

Now33 wrote:

How does the transfer work? Presumably you need to get a form from your existing ISA provider to prove that the investment transferred relates to a previous year?

Your new provider will normally handle the transfer for you.