Allowance - Transferring Stocks and Shares ISA

VB1991

When transferring a stocks and shares ISA to a new provider does the capital gained in the tax year contribute to your allowance when it is re-invested with the new provider ?

eskbanker

Transfers don't affect, and aren't affected by, annual contribution allowances, provided you use the receiving provider's ISA transfer process, so many such transfers are carried out with more than £20K moving across....

VB1991

For example if you have invested £10k and the portfolio has risen by £1k. 
You transfer the £11k to a new provider. 
Do you still have £10k left to invest in the tax year or is it £9k now ?
Thanks

eskbanker

VB1991 said:

For example if you have invested £10k and the portfolio has risen by £1k. 
You transfer the £11k to a new provider. 
Do you still have £10k left to invest in the tax year or is it £9k now ?
Thanks

You'd have used up £10K of your contribution allowance when you paid into the first ISA, so have the remaining £10K available for further contributions - capital growth isn't part of the equation....

Beefstew66

Would you still be able to use the new isa (already contributed alittle to old isa being transfered in current year) whilst the old one is still in the process of being transfered. Mine seems to be taking an age & i want to bed in an isa but i feel i have to wait?

Beefstew66

Same kind of stock&shares isa's by the way

masonic

Most ISA providers give you a figure for the remaining ISA allowance available to you. If this is reflecting the amount you've already subscribed to the old S&S ISA then it should be fine to add to the new ISA as the new ISA provider will be reporting to HMRC all of your subscriptions being made to the new ISA.

If not, then you'd need to be sure of the transfer completing before the end of the tax year to safely add money to the new ISA.