dividend received after S & S ISA transferred

secret_tramp

It is likely I will be transferring my Stocks and Shares ISA to a new provider. Here's the likely sequence of events:

1. November - shares owned go `ex-dividend`

2. November / December - shares are sold.

3. December - cash proceeds transferred to new provider.

4. February - dividends get paid.

My questions is this: What happens to those dividends that are paid after the transfer?

Ideally, they will be received by the old provider and within the ISA wrapper will be forwarded on to the new provider.

Is that how it works in practice? Does HMRC accept this and are there are any issues/pitfalls to look out for?

Thanks for any words of advice or wisdom. :T

N.b. I cannot wait until February when the dividends are paid to transfer the ISA as I am transferring to a `flexible` provider and need temporary access to the cash.

george4064

secret_tramp wrote: »

My questions is this: What happens to those dividends that are paid after the transfer? The old provider will forward on any income/dividends received to the new provider which in turn should be credited to your account.

Ideally, they will be received by the old provider and within the ISA wrapper will be forwarded on to the new provider.

Is that how it works in practice? Does HMRC accept this and are there are any issues/pitfalls to look out for? Nothing to do with HMRC because it is all within an ISA wrapper and just considered additional cash that is transferred from old ISA to new ISA.

Thanks for any words of advice or wisdom. :T You should be fine. Obviously keep a record of any dividends you are owed and make sure they are paid across, if not then get in touch to sort it out.

N.b. I cannot wait until February when the dividends are paid to transfer the ISA as I am transferring to a `flexible` provider and need temporary access to the cash.

Answers above in bold.

A few years ago I transferred my ISA and I did receive a few dividend payments to my old account, each and everyone were transferred to my new account with any issues.

Notepad_Phil

secret_tramp wrote: »

My questions is this: What happens to those dividends that are paid after the transfer?

Ideally, they will be received by the old provider and within the ISA wrapper will be forwarded on to the new provider.

Definitely keep a record of what dividends are due as per george4064.

I transferred an ISA across platforms and quite a lot of the initial set of dividends seemed to get stuck on the original platform and in each case I had to remind the old platform to send it onwards rather than them automatically sending them on to the new platform. Luckily I did not need immediate access to the dividends so it was not too much trouble for me.