Transferring ISAs - Can anyone confirm if this scenario is allowed?

innovate

westy22 wrote: »

This is where the added complexity comes in - providers interpreting HMRC rules in different ways. Just because HMRC say that something is legally possible doesn't necessarily mean that providers will make it practically possible.

A provider is also free to stop taking deposits/transfers-in when they see fit, and when their T&Cs allow. Of course it's poppycock that they are forced to do stop taking transfers-in into old accounts by the HMRC. However, we don't know whether the Barclays help desk actually claimed it was HMRC rules, or whether they refer to Barclay's own rules.

vacheron

Hi Innovate.

The Barclays advisor explicitly stated that the account allowed transfers in, but that the government ISA rules prohibited it and that if they proceeded with the transfer they (Barclays) would be asked to return the funds as I would have "subscribed" to two ISAs by virtue of transferring funds to the other account.

In reality however, new money will only have been added to the new account. I then wished to transfer previous years contributions from this new account to my old existing one.

This was a premier banking advisor so I assumed they would be a bit more clued up than their normal overseas call centre, but there is never any guarantee of course.

pqrdef

vacheron wrote: »

The Barclays advisor explicitly stated that the account allowed transfers in, but that the government ISA rules prohibited it and that if they proceeded with the transfer they (Barclays) would be asked to return the funds as I would have "subscribed" to two ISAs by virtue of transferring funds to the other account.

This is just incompetence. Transfer of new money is very explicitly permitted. The guidelines go into detail about it.

And in any case, you wouldn't need to transfer the new money.

Not only that, but if you did transfer the new money, and you hadn't already maxed out your allowance, you could then add more new money to the old ISA and you still wouldn't be breaking the rules. He's not even close. He hasn't a clue.

vacheron

pqrdef wrote: »

This is just incompetence. Transfer of new money is very explicitly permitted. The guidelines go into detail about it.

And in any case, you wouldn't need to transfer the new money.

Not only that, but if you did transfer the new money, and you hadn't already maxed out your allowance, you could then add more new money to the old ISA and you still wouldn't be breaking the rules. He's not even close. He hasn't a clue.

That is exactly what I thought.

Just for those who are joining the thread (and because I was bored at work) this is all I want to do......



....maybe I should take this in to a Barclays branch! :rotfl:

westy22

You could certainly email it to Barclays Complaints as it makes the point very clearly.

johnnybebad2000

lol i love the diagram!!

i dont see any issues with what you are doing, perhaps it was just (un)luck of the draw for whom you spoke to.

Perhaps the real issue is nothing to do with the ISA rules and more to do with paying money into a dormant account. Perhaps a block is stopping the money being transfered and the dormant block needs to be removed by them prior to the transfer.

[Deleted User]

I've just had a look at the following link which mid-way down discusses transferring part of a previous year's Cash ISA

http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Not sure if it helps but the article says "You may move ALL of this to another cash ISA or into a shares ISA, or SPLIT it between more than one cash or shares ISA". I don't think there should have been a problem in transferring the Nat West ISA into two different Barclay's accounts. I wonder whether the issue has arisen because the money has been transferred into this years ISA into which you have also put new money?

Just a thought ... :eek: (Yes, it IS scary)!

innovate

Your diagram seems to show that you want to move SOME of your new Barclays ISA, into which you contributed your 2013-14 allowance, into your old Barclays ISA.

If that is so, that is 100% against ISA rules, I'm afraid.

If you want to transfer the money you have put into your ISA in the current tax year, you must transfer all of it.

Source: http://www.hmrc.gov.uk/isa/faqs.htm#6

But you can transfer some or all of your "old" money out of your new Barclays ISA. All transfer request forms I have seen allow for this. Haven't seen a Barclays one, though. But even if their forms don't make provision for it, it is perfectly legal to do.

May be update your diagram to show the old and the new bits, and then take it into Barclays.

westy22

innovate wrote: »

May be update your diagram to show the old and the new bits, and then take it into Barclays.

I thought the green bit was the new 2013-14 money?

ManAtHome

Work of art looks fine to me - the green bit (this years funding) is staying where it is and part of previous years' subs are being moved.

Possible that it's a Barclays restriction - I had something similar with HSBC when I couldn't transfer between their 2 types of instant ISA (they only allowed transfers in from non-HSBC ISAs).