Confused about isa transfer rules

7sefton

Hi everyone

I suspect this is very simple but I’ve confused myself so would appreciate any help!

I currently have a cash ISA with Yorkshire BS. I opened it in 2022/23 tax year and paid in full allowance. Since the new 2023/24 tax year, I’ve added a few thousand more, so the balance is around £24K.

I now want to open a 1 year fixed isa bond with Shawbrook by transferring £20k into it from YBS. 

However is this allowed?

The Shawbrook ISA declaration says the deposit must be for the 2023/24 tax year and I can’t have subscribed to an isa in the current year.

Thanks for any help. 

Doctor_Who

Yes, this is allowed. Just do a previous year's ISA transfer from YBS to Shawbrook and don't subscribe (add new money) to the Shawbrook ISA. You can continue to subscribe to the YBS ISA upto a total of £20K this tax year.

7sefton

Thanks for your help, but the Shawbrook application form makes it sound like I have to transfer this year’s contributions if I’ve subscribed in this year. 

Should I just click ‘no’ to the question have I subscribed to this isa in the current tax year (even though I have), then just enter £20k as the amount I want to transfer?

masonic

I suspect if you call them, they will tell you it is ok to select No for that question if you don't want to transfer your current year subscriptions. Is there any guidance about this then you select the ? icon to the right of the question?

Doctor_Who

Their system seems to be forcing you to transfer this year's subscription even if you only want to transfer a previous year's subscription. As masonic says, call them to clarify.

See below from Gov.uk:

Transferring your ISA

You can transfer your Individual Savings Account (ISA) from one provider to another at any time.

You can transfer your savings to a different type of ISA or to the same type of ISA.

If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.

For money you invested in previous years, you can choose to transfer all or part of your savings.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa#:~:text=If you want to transfer,or part of your savings.