Opening multiple ISAs using ISA money from previous years

ozaz

I am aware you can only contribute new money into one of each type of ISA per tax year (e.g. one cash ISA, one S&S ISA, one IF ISA)

However, I'm unclear on rules regarding opening ISAs via transfer of money already invested from previous years. In 2017-2018, could I for example open 3 innovative finance ISAs at the same time with each funded entirely using partial transfer of cash from a cash ISA I have contributed to in previous years?

I'm particularly interested in this because I suspect none of my preferred P2P platforms will offer IF ISAs until 2017-2018 and I would like to achieve some platform diversification. If not allowed, I may open an ISA with a non-preferred provider before the end of this tax year.

Thanks

bigadaj

The isa from each year is separate, so you can normally transfer existing isas to new providers, and now it's interchangeable in terms of cash, equity or if.

So you could put money into a cash isa this tax year, open a new if isa in the new tax year, and then transfer the cash isa to a different if isa in the new tax year.

colsten

Technically, you could transfer parts of an existing ISA to many other new ISAs.

Practically, ISA providers might not support partial transfers. You need to check the T&Cs.

Also, practically, it might make sense or it might not to split an existing ISA.


(As always, this is not financial advice, it's only a comment from someone who is not a financial advisor. You need to pay for financial advice.)

masonic

ozaz wrote: »

I'm unclear on rules regarding opening ISAs via transfer of money already invested from previous years. In 2017-2018, could I for example open 3 innovative finance ISAs at the same time with each funded entirely using partial transfer of cash from a cash ISA I have contributed to in previous years?

Yes. As colsten says, your P2P platform would need to accept partial transfers in their T&Cs, but I expect most will. Check now that your existing cash ISA allows you to make partial transfers and if not move it to somewhere that will. You could also consider splitting up your previous year money using cash ISA -> cash ISA partial transfers so that you already have suitably sized pots of ISA money that you can transfer in full when the time comes.

I'm particularly interested in this because I suspect none of my preferred P2P platforms will offer IF ISAs until 2017-2018 and I would like to achieve some platform diversification. If not allowed, I may open an ISA with a non-preferred provider before the end of this tax year.

I have done this anyway. There are options that are flexible and those that pay interest on uninvested cash for the time being.

ozaz

Thanks for responses all. I am now checking whether my cash ISA allows partial transfers out and whether the P2P platforms I am interested in will allow transfers in.

masonic wrote: »

I have done this anyway. There are options that are flexible and those that pay interest on uninvested cash for the time being.

Which platform did you go with for 16-17, if you don't mind saying?

masonic

ozaz wrote: »

Which platform did you go with for 16-17, if you don't mind saying?

Abundance. A choice of flexible withdrawals, or 2% interest if you leave your money in there, seemed to tick all of the boxes.