Challenges with moving ISA

eskbanker

Frogletina said:

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.

OP can move £75K here, as this could be treated as all of this year's money plus £55K of prior year contributions....

Frogletina

eskbanker said:

Frogletina said:

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.

OP can move £75K here, as this could be treated as all of this year's money plus £55K of prior year contributions....

Sorry, you are of course correct.

Customer would need to indicate when moving any amount whether it includes this year's money. 

sultan123

So in any tax year you can open up several different ISA accounts and move previous years ISAs into these?

Frogletina

sultan123 said:

So in any tax year you can open up several different ISA accounts and move previous years ISAs into these?

Yes, so long as the terms and conditions don't mention they are for new money only. I've not seen any with this condition for a while.

This tax year I have opened 12 Isas, 

3 Vigin Easy access isas, just one left now. It was easier to open 3, transfer money from previous Isas into them, and consolidate, than fill in forms. 

I fixed Virgin Isa - this holds 2022-23 Isa money, plus some from previous years.

2 Coventry easy access Isas, both now closed, one I never used

1 Coventry fixed Isa, holds the bulk of my isa money

I Santander Isa, easy access...closed and transfered to 

Santander fixed Isa then cancelled before 14 days and transferred out

Barclays 1 year fixed Isa best deal at the time, 

Barclays 2 year fixed Isa, holds a small amount but does allow for transfer in during second year, however

Yorkshire 6 access isa is a good rate and flexible, and although I will put in 2023-24 money, I will also use the flexibility to fill my regular savers. After 6 withdrawals I have a work around to replace the money flexibly withdrawn by the end of the tax year...as I think this will be competitive as a flexible Isa for a while.