ISA transfers & 'funding one ISA per year' confusion

jnorth55

Have read several threads on this forum around transferring & one aspect seems not clear;

it's clear that transfers don't count towards the annual allowance for deposits but not so clear as to whether transferring counts towards the 'fund one ISA per year' aspect. For example;

transfer an ISA into a new provider = funding one ISA

then also depositing the yearly allowance into another ISA with a different provider = funding another ISA

or does it? 

The gov uk website isn't clear on this either. 

Does anyone actually know for sure?

Thanks.

Albermarle

You can open as many ISA's as you like in a tax year , but you can only fund one of each type with new money in that tax year.

transfer an ISA into a new provider = funding one ISA.

Transferring does not equal funding.


Caveat to that is that some providers allow you to open and fund more than one cash ISA with them, as they offer a kind of portfolio ISA. So with these providers you could fund for example, an easy access ISA and a fixed rate ISA and they are treated as one ISA ( still max £20K new money in total per year )