Transferring NatWest split ISA to other ISAs

mullygrubber

Hi everyone,

I have a bit of a complex question so please bear with me

I currently have a split ISA with NatWest - a help to buy and a cash ISA. However, I would like to transfer out a small portion of this help to buy ISA into a LISA (undecided on whether this will be the Skipton cash LISA or a stock and shares LISA) before 1st March so that I can maximise my contribution. I have not maxed out my 20k ISA allowance for this year.

However, I would also then like to transfer out the NatWest cash ISA into Virgin's easy access cash ISA. Alongside this, I am hoping to open a stocks and shares ISA and an innovative ISA (I don't own any of these two ISAs currently). Any cash from my NatWest H2B that I won't be moving into my LISA will be allocated into the other ISAs (i.e. the Virgin cash ISA, the stocks and shares ISA or the innovative ISA)

In summary, I plan to do the following and split my 20k allowance for tax year 2017-18 across these ISAs:

1. Transfer a percentage of my NatWest H2B ISA into a Skipton Lifetime ISA or Stocks and shares lifetime ISA

2. Transfer some of my NatWest Cash ISA and some of my H2B ISA into a Virgin Cash ISA

3. Transfer some of my NatWest Cash ISA and some of my NatWest H2B ISA into a *new* stocks and shares ISA (unless my LISA is a stocks and shares account, in which case I can't open two stocks and share ISAs right?)

4. Transfer some of my NatWest Cash ISA and some of my NatWest H2B ISA into a *new* innovative finance ISA.

Is the above reasonable/possible or is there anything I haven't thought of? What would be the best order for doing the above? Any help would be HUGELY appreciated!

Thanks in advance.

eskbanker

You need to bear in mind that all of your 2017/18 contributions to cash ISAs need to be kept together, i.e. with the same provider, so if you've paid into both the cash ISA and the HTB (also a cash ISA) this tax year then this will limit your options....

Alexland

First thing to remember is that if you want to transfer money you have contributed to an ISA (including a Split ISA) during the current year - you must transfer all of it.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa

So in the case of your Split Cash ISA how much have you contributed to both parts in total during this tax year? If it is over £4k you will not be able to transfer it to the LISA as it would breach the limit. You can however transfer the HTB ISA part balance at 5th April 2017 into a LISA and add £4k if you have the unused allowance left from your £20k?

Alex.

mullygrubber

Thanks very much for your replies guys and for the link.

Just to be crystal clear, I can transfer everything up till 5th April 2017 in my H2B into a Skipton LISA. Then, I can transfer all of my ISA contributions for this year (both NatWest H2B and Cash ISA) into the Virgin Easy Access ISA?

I am then free to open a stocks and shares ISA and an innovative finance ISA on top of these and contribute however I see fit?

Thanks!

Alexland

mullygrubber wrote: »

Just to be crystal clear, I can transfer everything up till 5th April 2017 in my H2B into a Skipton LISA. Then, I can transfer all of my ISA contributions for this year (both NatWest H2B and Cash ISA) into the Virgin Easy Access ISA?

Yes that should be possible. You can then add £4k into the LISA provided you remain under the £20k annual contribution limit.

mullygrubber wrote: »

I am then free to open a stocks and shares ISA and an innovative finance ISA on top of these and contribute however I see fit?

Yes subject to the £20k annual contribution limit. You will have made contributions to one of each of the 4 types of ISA this year which is fairly unusual as most people stick to one or two types.

mullygrubber

Thanks very much Alexland!

When you say people tend to stick to one or two is there a reason why? I am obviously aware that stocks and shares ISA/innovative finance ISA are riskier but I am only looking to put a small out of savings in these two. The bulk of my savings will be in a cash ISA or a lifetime/H2B.

Alexland

mullygrubber wrote: »

When you say people tend to stick to one or two is there a reason why? I am obviously aware that stocks and shares ISA/innovative finance ISA are riskier but I am only looking to put a small out of savings in these two. The bulk of my savings will be in a cash ISA or a lifetime/H2B.

Usually because they are focusing on just a couple of investment and savings objectives however the landscape has changed and it's no longer the right answer to have just one account per objective.