ISAs transfer, maxing out and next steps

masonic

Wilde00 wrote: »

Update: after many calls and mobile app chat with Barclays (nobody knew the answer), finally someone from their Saving Department told me this: if you partially withdraw money from the cash ISA and put it in the investment ISA, it will adds up to the 20k allocation.

The only way is to transfer the full amount with the official modules/process. OR, I can transfer money from the previous tax year, not from this one.

I am more confused than before Reading online you find different opinions

Will wonders never cease. It looks like you got partially correct information out of someone at Barclays. In short your options are:

1. Use the ISA transfer process to transfer all £20k paid in this tax year
2. Withdraw any part of this £20k and pay some or all of it in to the HL ISA subject to the total still adding up to £20k or less. You cannot use the ISA transfer process for this, it needs to be via withdrawal from a flexible ISA

The comment about previous tax year money is irrelevant. There is no previous tax year money in your Barclays ISA.

If you want the official information, you can find it here:
https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa
"Withdrawals of current year subscriptions, can effectively be replaced in any current year ISA, but cannot breach the ‘one ISA of each type per tax year’ rule."

See also the first worked example here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/684282/worked_examples_of_flexible_ISAs.pdf