ISA Transfer 11 May 2022 at 11:16AM in ISAs & tax-free savings 2 replies 132 views

346kge

I have a previous tax year Cash ISA paying a derisory rate, but found my very same provider offering a leading cash ISA rate in the Best Buy tables and accepting ISA transfers.  I only intend to move the previous tax years ISA rather than take out a new ISA this tax year with this provider, as I have already opened and funded a cash ISA this tax year elsewhere.  On applying to transfer, the T&Cs ask me to confirm that I understand I am opening a 2022/23 cash ISA.  As such, I have not gone ahead as I was concerned that the whole of the previous tax years ISA would lose its tax status if I were deemed to have opened two this tax year, even if I don’t actually fund this ISA with new cash, but rather transfer previous years cash.  Can anybody put my mind at rest that this won’t be seen as opening two Cash ISAs in the same year?  Many thanks.  

eskbanker

It's standard boilerplate wording, but if you're opening a cash ISA that'll be funded solely with transferred prior year money (while concurrently funding another one with a different provider) then that won't breach any rules - the wording should refer to 'subscribing', which excludes transfers, and there is actually no ISA rule preventing opening two cash ISAs in a tax year, but funding two with new money isn't allowed....

346kge

Thank you very much for your response.  I was hoping that I could open this one and fund with only prior year cash as I couldn’t see why it would breach any rules if not funding two with new money this tax year, but great to have that confirmed.