Isa transfer and new isa 25 August 2022 at 2:13PM in ISAs & tax-free savings 5 replies 311 views

Bert1971

Hello

I would like to transfer an existing, but inactive ISA to a new account, but I have just setup a new ISA with a full payment £20K.

Is it possible for me to do this within that ISA rules.

I assume it is not as that would mean the old ISA regains active status, but would like to clarify please.

eskbanker

You can transfer prior year ISA money wherever you like, and doing so has no effect on (and isn't affected by) your current year contributions.

Albermarle

I would like to transfer an existing, but inactive ISA

I am sure it is not inactive and will be gaining interest if it is a cash ISA, or values will be moving around if it is stocks and shares ISA.

Just because you are not adding to it does not mean it is inactive.

eskbanker

Albermarle said:

I would like to transfer an existing, but inactive ISA

I am sure it is not inactive and will be gaining interest if it is a cash ISA, or values will be moving around if it is stocks and shares ISA.

Just because you are not adding to it does not mean it is inactive.

ISAs are generally regarded as inactive if there haven't been any contributions made throughout a full tax year, and will typically require the subscriber to complete a reactivation form (or similar declaration) prior to making any new contributions, so if OP has an ISA that hasn't been topped up with any new money since 5 April 2021, then that would indeed be referred to as inactive by the ISA manager.

However, this is a moot point, as I don't believe that transferring it renders it active again as such, but even if it did the rule only relates to paying new money into one ISA of each type in any tax year, rather than having two deemed as active....

There have been plenty of threads about this over the years, such as https://forums.moneysavingexpert.com/discussion/5421152/transferring-an-inactive-isa

Edit: corrected, as below

masonic

eskbanker said:
However, this is a moot point, as I don't believe that transferring it renders it active again as such

If one makes an ISA declaration (such as when a new account is opened to receive the transferred ISA), it does render it active. Not that this is makes any difference, as you say.

Albermarle

ISAs are generally regarded as inactive if there haven't been any contributions made throughout a full tax year, and will typically require the subscriber to complete a reactivation form (or similar declaration) prior to making any new contributions, so if OP has an ISA that hasn't been topped up with any new money since 5 April 2021, then that would indeed be referred to as inactive by the ISA manager.

OK understood.