Does transferring ISA into new ISA count as a subscription?

[Deleted User]

I don't know if this is possible but would like to open 2 stocks ISA this year because one is cheaper for funds, and the other is cheaper for shares.
I would pay money into one of the new ISAS. And transfer an existing stocks ISA (not paid into this year) into the other new ISA. 

Does anyone have any thoughts on this? My gut says it's probably not allowed as the transfer would count as a subscription, therefore I would be subscribing to 2 stocks ISAs in the same year. I'm sure this isn't allowed.

eskbanker

Transfers don't count as subscriptions, so you can indeed pay new money into one S&S ISA and old (prior year) money into another concurrently.

colsten

eskbanker said:

Transfers don't count as subscriptions, so you can indeed pay new money into one S&S ISA and old (prior year) money into another concurrently.

True - provided you use the proper process for the ISA transfer - i.e. instruct the target ISA provider to make the transfer.

Note also that ISA providers are not obliged to support partial transfers in, or out. Also, if you transfer any money you have paid in in the current year, you must transfer all of the current  year's deposit. Transferring an existing S&S ISA involves selling your investment in the old ISA and investing again (in same or other vehicles) in the new ISA. 

eskbanker

colsten said:
Transferring an existing S&S ISA involves selling your investment in the old ISA and investing again (in same or other vehicles) in the new ISA. 

Not necessarily - transfers can be done 'in specie' (if desired/supported, etc) although it often seems to be quicker to go via cash.

[Deleted User]

Interesting, I'm still not sure so may just ask the ISA platform, what is the feeling around opening two stocks isas in the same tax year? Do you know if that's allowed?

eskbanker

Isaisa1975 said:

Interesting, I'm still not sure so may just ask the ISA platform

Well, the question you asked was answered!

Isaisa1975 said:

what is the feeling around opening two stocks isas in the same tax year? Do you know if that's allowed?

Yes, it's allowed.  What's not allowed is to pay new money into more than one S&S ISA in any given tax year....

afis1904

It is allowed as long as all of the contributions for one tax year are in the same one. For example you could open a £fixed fee one and transfer your old contributions into there and open a new one for this year's contributions.