Challenges with moving ISA

sultan123

Frogletina said:

Is this the Cash Isa Tracker? 

As it is a flexible Isa, you could withdraw £20000 to a non-Isa account on 6 April, and then transfer that into a fixed Isa account. 

This assumes you don't have another £20000 that you want to invest in an Isa for 2023-24.

The skipton account is eisa flexible account.

If I withdraw surely the 20k loses its ISA protection?

etienneg

Many ISAs, including those that I use currently (Virgin, Coventry and Yorkshire Building Society) all allow partial transfers out. In my experience, this is more common than only allowing full transfers. The best thing for you would be to choose one which you would use if it allows partial transfer out, and then to look in the terms and conditions to see if it does. Look for the "transfers out" section and make sure it says something like "You may transfer all or part of your ISA to a different provider ...". If it doesn't say explicitly, either avoid it or ring them and ask.

Skipton rates are nothing special at the moment, so I'm sure you can do better elsewhere, both for easy access and fixed rate. Look here:

https://www.moneysavingexpert.com/savings/best-cash-isa/

To answer your question above to Froglatina: Yes, the amount withdrawn would lose its ISA status if you didn't pay it back into that particular account during the same tax year. But if you didn't have more money to pay into an ISA, you could use your allowance next tax year to pay it into a different ISA. I think that's what Froglatina was thinking. But it doesn't matter for this purpose whether your Skipton ISA is flexible or not. It's a less versatile approach, however, as once done it you can't add any more money in that tax year. Transfer to somewhere else that allows partial transfers out and you keep your options open (and hopefully get a better interest rate).

sultan123

etienneg said:

Many ISAs, including those that I use currently (Virgin, Coventry and Yorkshire Building Society) all allow partial transfers out. In my experience, this is more common than only allowing full transfers. The best thing for you would be to choose one which you would use if it allows partial transfer out, and then to look in the terms and conditions to see if it does. Look for the "transfers out" section and make sure it says something like "You may transfer all or part of your ISA to a different provider ...". If it doesn't say explicitly, either avoid it or ring them and ask.

Skipton rates are nothing special at the moment, so I'm sure you can do better elsewhere, both for easy access and fixed rate. Look here:

https://www.moneysavingexpert.com/savings/best-cash-isa/

To answer your question above to Froglatina: Yes, the amount withdrawn would lose its ISA status if you didn't pay it back into that particular account during the same tax year. But if you didn't have more money to pay into an ISA, you could use your allowance next tax year to pay it into a different ISA. I think that's what Froglatina was thinking. But it doesn't matter for this purpose whether your Skipton ISA is flexible or not. It's a less versatile approach, however, as once done it you can't add any more money in that tax year. Transfer to somewhere else that allows partial transfers out and you keep your options open (and hopefully get a better interest rate).

Can you move your money into different isas in se yax year?

For example 20k already paid in for this tax year can I simply move that 20k to better interest paying ISA provider even though that 20k will have gained interest?

etienneg

sultan123 said:
Can you move your money into different isas in se yax year?

For example 20k already paid in for this tax year can I simply move that 20k to better interest paying ISA provider even though that 20k will have gained interest?

It's not straightforward to answer the question as to whether you can split current year contribution and interest accrued on it. As I understand it, the ISA rules are not explicit on this, so potentially different providers could have different interpretations. You would need to ask the individual provider. But you would need to be very clear about what you were asking.

However, I'm not sure why you are asking this. You can't be meaning your existing Skipton ISA as you have said they don't allow partial transfers. Perhaps you are meaning that you would transfer the whole thing to another provider, and then transfer £20,000 elsewhere. That would be fine. You say there is approaching 85k, so you would specify a transfer of £20,000 from previous year's money, hence leaving current year's money and interest together. Anyway, we shall soon be into a new tax year, so all money in your ISA will become previous year's money.

Or am I not understanding what you are asking? Does it help to say that if you transfer the whole ISA, accrued interest will be calculated and paid, thus being included in the amount transferred?

sultan123

etienneg said:

sultan123 said:
Can you move your money into different isas in se yax year?

For example 20k already paid in for this tax year can I simply move that 20k to better interest paying ISA provider even though that 20k will have gained interest?

It's not straightforward to answer the question as to whether you can split current year contribution and interest accrued on it. As I understand it, the ISA rules are not explicit on this, so potentially different providers could have different interpretations. You would need to ask the individual provider. But you would need to be very clear about what you were asking.

However, I'm not sure why you are asking this. You can't be meaning your existing Skipton ISA as you have said they don't allow partial transfers. Perhaps you are meaning that you would transfer the whole thing to another provider, and then transfer £20,000 elsewhere. That would be fine. You say there is approaching 85k, so you would specify a transfer of £20,000 from previous year's money, hence leaving current year's money and interest together. Anyway, we shall soon be into a new tax year, so all money in your ISA will become previous year's money.

Or am I not understanding what you are asking? Does it help to say that if you transfer the whole ISA, accrued interest will be calculated and paid, thus being included in the amount transferred?

Skipton are now saying partial transfer allowed. However, this is not allowed on this tax years money.

I moved all of my money from another ISA into skipton this year and then added 20k on top for this tax year. Can I open up a new ISA and move money from 2013 tax year (which was moved into Skipton ISA this year) into this new ISA account? 

Frogletina

sultan123 said:

Frogletina said:

Is this the Cash Isa Tracker? 

As it is a flexible Isa, you could withdraw £20000 to a non-Isa account on 6 April, and then transfer that into a fixed Isa account. 

This assumes you don't have another £20000 that you want to invest in an Isa for 2023-24.

The skipton account is eisa flexible account.

If I withdraw surely the 20k loses its ISA protection?

Yes it will, which is why I asked if you intended adding more money in the next year. 

However, you have since said it is an eisa, and that you can do a partial transfer.

Frogletina

sultan123 said:

etienneg said:

sultan123 said:
Can you move your money into different isas in se yax year?

For example 20k already paid in for this tax year can I simply move that 20k to better interest paying ISA provider even though that 20k will have gained interest?

It's not straightforward to answer the question as to whether you can split current year contribution and interest accrued on it. As I understand it, the ISA rules are not explicit on this, so potentially different providers could have different interpretations. You would need to ask the individual provider. But you would need to be very clear about what you were asking.

However, I'm not sure why you are asking this. You can't be meaning your existing Skipton ISA as you have said they don't allow partial transfers. Perhaps you are meaning that you would transfer the whole thing to another provider, and then transfer £20,000 elsewhere. That would be fine. You say there is approaching 85k, so you would specify a transfer of £20,000 from previous year's money, hence leaving current year's money and interest together. Anyway, we shall soon be into a new tax year, so all money in your ISA will become previous year's money.

Or am I not understanding what you are asking? Does it help to say that if you transfer the whole ISA, accrued interest will be calculated and paid, thus being included in the amount transferred?

Skipton are now saying partial transfer allowed. However, this is not allowed on this tax years money.

I moved all of my money from another ISA into skipton this year and then added 20k on top for this tax year. Can I open up a new ISA and move money from 2013 tax year (which was moved into Skipton ISA this year) into this new ISA account? 

You can move any money from previous tax years from the Skipton isa as they have now confirmed you can do a partial transfer.

Maybe what you have been told is that you cannot partially transfer your current year's contributions.

After 6th April, all will be previous year's contributions, whether you move £20,000 this tax year or next.

jimjames

sultan123 said:

eskbanker said:

sultan123 said:

eskbanker said:

Transfer it all to a provider that does support partial transfers, and then distribute it from there - if you want to stick with Skipton then you could make the full transfer to provider A, partial transfer the excess to provider B and then (full-)transfer the residual £85K (or whatever) back to Skipton....

Thanks good idea.
Should i wait till start of new tax year then?

The tax year change doesn't make any difference either way....

But I have earnt interest this tax year?

What difference do you think that makes?

eskbanker

sultan123 said:

Skipton are now saying partial transfer allowed. However, this is not allowed on this tax years money.

I think you may have mixed up two separate concepts.

It's one of the fundamental ISA scheme rules that current year contributions can't be split up, i.e. if you pay up to £20K into any ISA then that money must be kept together until the end of that tax year, after which you can do what you like with it, as far as the scheme rules are concerned.

However, partial transfers are a separate issue, relating to any money in ISAs (not just current year contributions), and providers are at liberty to choose whether or not to support these.

If you have something like £85K in a Skipton ISA, including £20K of current year money, then you can effectively move as much or as little as you like to any provider that accepts in partial transfers....

Frogletina

eskbanker said:

sultan123 said:

Skipton are now saying partial transfer allowed. However, this is not allowed on this tax years money.

I think you may have mixed up two separate concepts.

It's one of the fundamental ISA scheme rules that current year contributions can't be split up, i.e. if you pay up to £20K into any ISA then that money must be kept together until the end of that tax year, after which you can do what you like with it, as far as the scheme rules are concerned.

However, partial transfers are a separate issue, relating to any money in ISAs (not just current year contributions), and providers are at liberty to choose whether or not to support these.

If you have something like £85K in a Skipton ISA, including £20K of current year money, then you can effectively move as much or as little as you like to any provider that accepts in partial transfers....

However  you do have to look at both concepts when transferring.

You can move any amount of previous year's money or all of your current year money, or all of your Isa money, but you cannot in this case move, eg, £75,000, as that doesn't keep this year's money in one place.