Help regarding ISA rules!

siblood

Please forgive my lack of knowledge!

Currently in the process of transferring a Stocks and Shares ISA into my name. Have been advised that it firstly needs to have the "ISA wrapper" taken off it prior to transfer. After this has happened and transfer has taken place I can then turn it into an ISA again through completion of a form. I also have a MoneyBox account whereby it creates savings by rounding up purchases into a Stocks and Shares ISA.

a) Can I continue the process of transfer in this tax year or will I have to wait until April 2019?
b) If I close the MoneyBox account can I complete the transfer now?

Thanks for your help in advance!

Si.

MallyGirl

Hi

is it in an ISA right now in your name? Where are you transferring from and to? Is it a Cash or S&S ISA?
It is not clear what you are doing?

siblood

Thanks for getting back to me. Transferring a stocks and shares ISA from Mother's name to my own. They need a statement to release the ISA wrapper and they have sent a form for me to fill in which in effect puts the wrapper back on but in my name. If I do the transfer now would having a MoneyBox ISA create a problem - 2 ISA's in the same tax year and should I wait until April? Thanks again for your time.

Keep_pedalling

I am presuming your mother is deceased in which case her ISA is no longer an ISA. You can certainly transfer the assets into an ISA of your own provided they don’t exceed £20,000, and that assumes yo7 have not used any of this years allowance already.

eskbanker

siblood wrote: »

Thanks for getting back to me. Transferring a stocks and shares ISA from Mother's name to my own. They need a statement to release the ISA wrapper and they have sent a form for me to fill in which in effect puts the wrapper back on but in my name. If I do the transfer now would having a MoneyBox ISA create a problem - 2 ISA's in the same tax year and should I wait until April? Thanks again for your time.

The term 'transfer' in the context of ISAs typically refers to moving funds from one ISA to another one held by the same person, retaining the tax-free status along the way (and circumventing annual contribution limits), whereas what you're planning is essentially liquidating your mother's ISA investments, withdrawing the cash and then (separately) using those proceeds to fund another ISA in your name.

So, as far as ISA rules are concerned, the previous ISA status of that money isn't relevant and it's treated as new money (towards your total allowance of £20K), so either has to go into your existing MoneyBox ISA (assuming you've paid into this since 6 April) or has to be paid into a non-S&S ISA (or non-ISA general investment account) until the start of the 2019/20 tax year next April.

Or, similar to your option b in your OP, you could transfer the MoneyBox ISA to another S&S ISA provider and then add the new money to this new account.