Combining Maxi ISAs

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
10 replies 757 views
steve23144steve23144 Forumite
11 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I've got several ISAs from the past 6-7 years with 2 different providers, and was thinking of moving them to HL for a wider selection of funds. However, HL have said all the ISAs will be merged into one account.

1) If I do this, how would I transfer one of the ISAs later on to a new manager outside of HL?

2) What if in the future I wanted to transfer the current ISA? How would I know how much of it was for the current year? Would I have to transfer everything including all previous years?

3) If I would have to move everything, are there other managers who allow you to hold the different years' ISAs separately?

Replies

  • Anybody?

    Both my current providers allow me to see each ISA separately, but being green I don't know if this is usual practice or not.
  • cheerfulcatcheerfulcat Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    Hi, steve,

    Do you actually want to keep the ISAs separate? AFAIK, most self-select providers will merge past years so if you want to keep them apart you'll need to have them with different providers.
  • Mr_MumbleMr_Mumble Forumite
    1.8K Posts
    You shouldn't be thinking of previous years ISA subscriptions as separate ISAs, HMRC don't! You can do a partial transfer of any money/shares/funds that has been subscribed to in previous years, only the current years ISA subscription cannot be partially transferred (though it can be completely transfered). So:

    1. You can do a partial transfer-out from HL of any previous years money.

    2. You can transfer the current years subscription in the current year. You'll know how much is current year because you put the money into it in the current year! Subtract this years subscription from the total ISA funds and you'll have the maximum amount you can transfer out partially, of course you can transfer the lot if you wish.

    3. You don't have to and it doesn't matter, you can divide previous years ISA subscriptions how you wish as long as the provider allows it.

    Hope that helps :)
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
  • Holding one merged ISA instead of six separate ones seems better, but I don't know enough to be able to tell whether this is best.

    If I wanted to switch to a fund that HL did not hold, would I be able to switch X% of the total to a new provider? If so, this would definitely be simpler than X% of six separate ISAs.

    How does the merging of the past and present tax years work? Can I transfer just my present year's ISA (2007-8 as it will be) to someone else, if it's mixed in the same account as the previous years?
  • Mr_Mumble wrote: »
    2. You can transfer the current years subscription in the current year. You'll know how much is current year because you put the money into it in the current year! Subtract this years subscription from the total ISA funds and you'll have the maximum amount you can transfer out partially, of course you can transfer the lot if you wish.

    Thanks, this is the bit I'm struggling with.

    If I subscribe £3,000 in the new tax year, and partway through I transfer, I can only transfer £3,000 no matter how much the funds have risen? What if it's fallen?

    Would I have to factor in the various rises/falls?
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    Holding one merged ISA instead of six separate ones seems better, but I don't know enough to be able to tell whether this is best.
    Give me the answer to these two sums.
    5x 7000 =
    1x 35000 =

    The answer is the same. It makes no difference apart from admin.
    If I subscribe £3,000 in the new tax year, and partway through I transfer, I can only transfer £3,000 no matter how much the funds have risen? What if it's fallen?

    You transfer the value not the £3000.

    ISAs are a contribution allowance not a value based allowance.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jamesdjamesd Forumite
    24.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    The current year funds will be tracked apart from the past year funds, so it'll be possible to know what belongs to it, including any growth or loss.

    You can transfer all of the current year money but not part of it, because you're only allowed to have one active ("subscribed") ISA of each type each year. Once you've done the transfer all additional payments in the current year would have to be to the new provider, not to h-l. So you'd probably find it better to use past year money to buy things h-l doesn't sell.

    It's more convenient to merge prior years because that lets you switch money around without having to deal with part of it being in one pool and part in another. You can transfer any amount of money from past years, with no restriction on what percentage it is.
  • jamesd wrote: »
    The current year funds will be tracked apart from the past year funds, so it'll be possible to know what belongs to it, including any growth or loss.

    So that means I'd have two accounts, one for the current year, and one for all previous? This makes sense.
    dunstonh wrote:
    The answer is the same. It makes no difference apart from admin.
    It was the admin point of view I was interested in - two accounts seems better since the rules are different.

    It was the value of the current ISA that was bothering me because even if the account rose (or fell) by X% as a whole, it doesn't mean my current ISA would have, since the funds in it might not be representative of my entire account.
  • jamesdjamesd Forumite
    24.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    One account, but two chunks within it. Effectively a pair of virtual accounts.
  • Thanks for all the advice, folks.

    I sent off the forms to get the ISAs transferred. HL have written back to say it'll be two weeks to get everything sorted, so all looking good.

    Thanks again.
This discussion has been closed.
Latest MSE News and Guides

Students - apply for uni funding NOW

If you plan to get a place via 'clearing'

MSE News

A guide to council tax bands

Lower your band & save £1,000s

MSE Guides