Transferring ISA in same tax year and adding new money

vikkiew

I have an S&S ISA with provider A. It was opened several years ago and I have not added any new money in this tax year. I opened a new S&S ISA last week with different provider B adding 6,000.

I want to to combine the S&S but I want to transfer the new S&S with B into previous with A. My plan was to move in the other direction but I am disappointed with B's service and prefer to continue only with A. Do I need to wait until the next tax year or can I transfer it now in the same year I opened it?

I have 14,000 ISA allowance remaining for this tax year. If I transfer B to A can I then add more to A as B no longer exists or do I lose the ability to add any more directly into S&S this year? In that case could I open a cash ISA with C add new money and then transfer that from cash with C to S&S with A or is that against the rules?

mebu60

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

vikkiew

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Albermarle

vikkiew said:

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Yes, because if you add to A now, you will have added new money to two different S&S ISA's in one year, which is not allowed.

hoc

Albermarle said:

vikkiew said:

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Yes, because if you add to A now, you will have added new money to two different S&S ISA's in one year, which is not allowed.

If you have opened B and added to it, closing it by transferring to A would not introduce the ability to pay further into the transferred A. That was my interpretation as technically A and B are different. Can you share a source for your statement?

isasmurf

hoc said:

Albermarle said:

vikkiew said:

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Yes, because if you add to A now, you will have added new money to two different S&S ISA's in one year, which is not allowed.

If you have opened B and added to it, closing it by transferring to A would not introduce the ability to pay further into the transferred A. That was my interpretation as technically A and B are different. Can you share a source for your statement?

You can continue to save in ISA B because, technically, it is still the same ISA as opened in A but by transferring is now managed by B.

Strictly speaking the accounts are not the ISA, it is the wrapper around the money that is the ISA and you can hold the money within that wrapper in 1 or more of whatever accounts are offered. By transferring your current year ISA you're asking someone else to manage your only current year ISA wrapper. You still only have 'one ISA a year', it just has different account(s) in it and is managed by a different bank than when you first opened it. 

Daliah

hoc said:

Albermarle said:

vikkiew said:

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Yes, because if you add to A now, you will have added new money to two different S&S ISA's in one year, which is not allowed.

If you have opened B and added to it, closing it by transferring to A would not introduce the ability to pay further into the transferred A. That was my interpretation as technically A and B are different. Can you share a source for your statement?

@Albermarie is, as usual, correct. This from the HMRC Guide for ISA Managers:

Albermarle

isasmurf said:

hoc said:

Albermarle said:

vikkiew said:

mebu60 said:

Assuming A accepts transfers-in you should be able to transfer B to A in this tax year then add to it as you describe. 

So I can not add to A currently but once I transfer B to A then I can add more to A?

Yes, because if you add to A now, you will have added new money to two different S&S ISA's in one year, which is not allowed.

If you have opened B and added to it, closing it by transferring to A would not introduce the ability to pay further into the transferred A. That was my interpretation as technically A and B are different. Can you share a source for your statement?

You can continue to save in ISA B because, technically, it is still the same ISA as opened in A but by transferring is now managed by B.

Strictly speaking the accounts are not the ISA, it is the wrapper around the money that is the ISA and you can hold the money within that wrapper in 1 or more of whatever accounts are offered. By transferring your current year ISA you're asking someone else to manage your only current year ISA wrapper. You still only have 'one ISA a year', it just has different account(s) in it and is managed by a different bank than when you first opened it. 

I think you got your A and B mixed up , if you reread the thread.