Transfer one ISA to a new type, open old type again?!

xnoxxnox

Getting confused about transfers and limits on one ISA type subscription per year.

Open IFISA, pay money in.
Transfer IFISA to a brand new Cash ISA (all of it, current year & past year contributions).
Open a different IFISA...
... can I pay-in new money into this new IFISA?!

Or cause first one got transfered... It effectively evolved into a Cash ISA like a Pok!mon, and I only can't pay in new money into a different cash ISA.

Basically, is it about concurrent one ISA type during a tax year, or across the full year, and thus did I burn my IFISA type allowance by transfering it out to a cash ISA.

I wish they just dropped the limits on ISA types.

grey_gym_sock

AIUI, when you transfer a current year ISA to a different type, it is treated as if it had always been of the new type. e.g. an IFISA transferred to a cash ISA is treated as if it had always been a cash ISA. hence you are free to subsequently open and subscribe new money into an IFISA.

MDMD

Per ISA guidance on transfers at https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager#what-amounts-can-be-transferred

This means that the investor is regarded as never having subscribed to the original ISA so, subject to the annual subscription limits the investor may subscribe to another ISA of the type that has been transferred later in the current year (with the same or a different manager) without breaching the one ISA of each type a tax year rule.