ISA changes from April 2008

isasmurf

The changes announced for ISAs in 2008 have now become law.

A useful guide to the changes has been provided by one of the trade associations.

Of course these are already in the FAQ

Judwin

I'm hoping to use these changes to transfer about half my current Mini Cash ISA, into a S&S. However....

Although i know its possible to transfer ALL of an ISA between providers (aka Switching), I haven't read anything about partial transfers. My current Cash ISA is with Abbey, and I'd probably like to use H-L for the S&S ISA next year. If Abbey make it difficult by refusing a partial transfer request, then it's going to get complicated. I'd need to find a Cash ISA provider that accepts transfers in, and partial transfers out again, which seems likely to take about 2 months to complete.

It seems to be that anyone using an ISA provider that doesn't allow partial transfers could come unstuck next April. Or am I worrying about nothing ?

EDIT - Looks like I'm ok - I've got an Abbey Direct CAsh Mini ISA, so Section 17 of the T&C looks good to me. However, anyone with a Choices ISA - hmmmm

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EDIT

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17 Transferring out
17.1 You may ask us, at any time, to transfer all or part of your ISA to another ISA Manager approved under the ISA Regulations. You cannot partially transfer your Choices ISA. If you are transferring from a Choices ISA, paragraph 9 also applies. If you are transferring from a Super ISA, Direct ISA, Easy ISA, a Postal ISA or a Variable Rate TOISA, we will normally process your request within five Business Days of receipt, however you may request a date after this period if you wish. If you are transferring from a Choices ISA, you should give us at least six Business Days notice of transfer.

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Cheers,
Judwin

Milarky

ISA transfers are always on the conditions of the receiving provider - some do allow partial transfers, some don't

Yorkshire YBS will accept a partial transfer-in to it's mini cash ISA (e ISA currently 5.80%) - that is what someone at YBS told me at least. Also they backdate interest to the date of receipt - not all will do this.

So if you want to split off your cash ISA partly into a S&S ISA next year, and if HL say they want all your funds rather than just what you want to use, you can 'pre-split' your cash using the YBS to hold some. Any provider insisting on 100% of funds (and I'd think they are out of line asking, but probably still allowed to do so) can only request whatever is in either of the accounts you then tell them about.


HTH