New isa

purple_hamster

I need to open a new isa. Can I transfer the money in my old isa into a new account and then keep paying into the old one? Or can I transfer part of the money into the new one?

(there is a very specific reason for doing it this way, rather than just opening a new one and paying into that!)

grumiofoundation

Assumed both the ISAs the same type? 

Have you paid into old ISA during this tax year (2020/2021)?

 Can I transfer the money in my old isa (ISA A) into a new account (ISA B ) and then keep paying into the old one? 

If you have you paid into old ISA (ISA A) during this tax year you cannot transfer this to a new ISA (ISA B ) and continue to pay into ISA A this tax year - this would count as paying into 2 ISAs of same type within same tax year which is not allowed.

However if you haven't paid into old ISA (ISA A) during this tax year then you can
a)  transfer all/some* to newly opened ISA B (but don't pay any new money to ISA B ).
then b) pay into ISA A - since this will count as your 2020/21 contribution.

 Or can I transfer part of the money into the new one?

If money is this years contribution that must stay together.

If is previous years can be split and you can do partial transfer (*assuming both ISA providers allow).

(there is a very specific reason for doing it this way, rather than just opening a new one and paying into that!)

If old ISA (ISA A) contains current years subscriptions and is same type you couldn't do this anyway.

Edited: as B ) without a space makes

purple_hamster

I have paid into Isa A this tax year (and also previous years). They will both be cash isas. If I wait until the new tax year would I then be able to do this?

grumiofoundation

In that’s case you can do the second option you proposed above - since you are allowed to do transfer all (or some) - of the previous years subscriptions to new ISA (ISA B ).

If you want to continue to contribute to ISA A make sure you don’t transfer any of 2020/21 contributions. 

Say you have £30000 in ISA, £10,000 contributed this year, £20,000 previous.

You can transfer up to £20,000 to new provider (ISA B ). (Specifying you are transferring previous years if this is an option on transfer form). You cancontinue to contribute this tax Year to original ISA (ISA A). 

Yes next tax year you can do either option that you suggested in OP since now all the money in ISA A is previous years subscriptions.

purple_hamster

Or could I (this tax year) transfer the amount paid into ISA A in previous years into ISA B and then continue paying into ISA A? (I've found one with a much better interest rate)

grumiofoundation

Yes you can do within ISA rules - that’s what I was trying to explain above.

(This is assuming both providers will support the partial transfers.)

purple_hamster

thanks (sorry I think I posted my last post without seeing your previous reply!) really appreciate your help!

MDMD

purple_hamster said:

Or could I (this tax year) transfer the amount paid into ISA A in previous years into ISA B and then continue paying into ISA A? (I've found one with a much better interest rate)

Just out of interest how much better is “much better”?