Confused on ISA transfer

kkkyahoo

I'm a bit confused on transferring an ISA to AJBell. Every other transfer I've ever done, I've filled the form in, and the account has been created on transferring the ISA from the previous provider.

However, AJ Bell/ Youinvest have told me that I have to open a new ISA account with them before transferring my existing (2009) ISA from another broker.

Now, the problem is that I've already done a bed and ISA this year with Fidelity.

According to AJ Bell I can open an account with them as long as I don't subscribe to it, and it's only used for the transfer.

Is that really right? I obviously don't want to end up losing my tax shelter on those funds - or on the bed-and-ISA - if it all goes wrong. I can't find anything on this in the Inland Revenue documentation (very superficial) or on this forum, or indeed anywhere else.

colsten

AJ Bell are 100% correct.

masonic

I've done quite a lot of ISA transfers including cash to cash, cash to S&S and S&S to S&S. I don't recall ever initiating a transfer into an ISA I had not previously opened. I'm not sure how that would even work, given that most provider's transfer forms require a destination account number.

Eco_Miser

I've transferred cash ISA to previously unopened cash ISA, in branch, either filling in forms to both open the new ISA and to transfer simultaneously, or a single form to do both (I can't remember now). The forms were printed out already filled in, requiring just a signature or two.

masonic

Eco_Miser wrote: »

I've transferred cash ISA to previously unopened cash ISA, in branch

That probably explains the difference, although we're probably splitting hairs as the application form would probably have been processed prior to the ISA transfer form being sent to the old ISA manager. The point being, I would never complete an ISA transfer form without also completing an ISA account application either before or at the same time. It would, if nothing else, be a bit presumptuous as my application for the new ISA could potentially be refused.