Cash ISA transfer and new payments

2468AWT

Hello. Apologies for creating a new thread as I’m sure the answer exists somewhere amongst the existing posts, but after some time searching I couldn’t find it.

I previously held a Cash ISA with provider A which included contributions from previous tax years but no contributions had been made in the current 22/23 tax year.

I transferred the funds in full to a new Cash ISA with provider B at the end of April ‘22. I also then made a £5k payment so I have subscribed in the current tax year. It is a fixed rate product and I only had a short window of time to add new funds which has now closed.

I now want to transfer the funds in full again as the rate is well below what I can get elsewhere, even taking in to account the exit penalty that I will incur. I believe that I can transfer to a new Cash ISA with provider C no problem under the ISA rules.

Question: once transferred to provider C will I be able to make additional payments to take me up to the £20k threshold for the current tax year (i.e. the remaining £15k), or is that prohibited as I have already subscribed to the Cash ISA with provider B this tax year?

Thank you

eskbanker

The rule is simply that all of your current tax year cash ISA subscriptions need to be in the same place, so if you transfer them from B to C but have some allowance left then you can pay more into C - post-transfer, the contributions are treated as if they'd been made into C all along

2468AWT

Perfect, thank you so much for explaining