Transferring ISA

Hi all. This year I have opened a stocks and shares ISA and reached the £20k allowance. 

Would I still fall in the ISA rules if I open a new cash ISA this financial year and transfer funds from an older ISA opened last financial year?  

My understanding is that you can open a stocks and shares and cash ISA in the same year but I’m unsure if the transfer of an old ISA to a new one would break the £20k allowance. 

Thanks
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  • eskbanker
    eskbanker Posts: 29,775
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    Transfers of prior year money don't affect, and aren't affected by, the current year contribution allowance so you're fine to do what you suggest, as long as you use the receiving provider's ISA transfer process.
  • Albermarle
    Albermarle Posts: 21,005
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    MitenM said:
    Hi all. This year I have opened a stocks and shares ISA and reached the £20k allowance. 

    Would I still fall in the ISA rules if I open a new cash ISA this financial year and transfer funds from an older ISA opened last financial year?  

    My understanding is that you can open a stocks and shares and cash ISA in the same year but I’m unsure if the transfer of an old ISA to a new one would break the £20k allowance. 

    Thanks
    If you read through the forum, you will see lots of very similar questions on a regular basis, so worth having a scroll through.
  • Madison
    Madison Posts: 174
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    I'm in exactly the same predicament.  I've tried to open an ISA with both Zopa and Moneybox and while their info says you can transfer in, the only option on their apps is to fund it from a linked current account.
  • refluxer
    refluxer Posts: 2,523
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    Madison said:
    I'm in exactly the same predicament.  I've tried to open an ISA with both Zopa and Moneybox and while their info says you can transfer in, the only option on their apps is to fund it from a linked current account.
    To transfer ISAs into Zopa, open your Smart Savings Hub click on Manage, Account Information, Smart ISA details and you'll see the option for ISA transfers.
  • Qyburn
    Qyburn Posts: 2,067
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    Madison said:
    I'm in exactly the same predicament.  I've tried to open an ISA with both Zopa and Moneybox and while their info says you can transfer in, the only option on their apps is to fund it from a linked current account.
    You may need to update the Zopa app.
  • cybernurse
    cybernurse Posts: 21
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    I have a similar problem. Hope someone can clarify. I have an ISA that I opened in March 2023. It matures next month. I opened a fixed rate 1 year ISA with a different provider in August 2023 so my allowance for this year is used up. Can I do   anything with the ISA funds that mature next month, keeping them in ISA form, while waiting for the new tax year starting in April?
  • refluxer
    refluxer Posts: 2,523
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    edited 6 February at 11:04AM
    I have a similar problem. Hope someone can clarify. I have an ISA that I opened in March 2023. It matures next month. I opened a fixed rate 1 year ISA with a different provider in August 2023 so my allowance for this year is used up. Can I do   anything with the ISA funds that mature next month, keeping them in ISA form, while waiting for the new tax year starting in April?
    Yes, if you haven't paid anything from this tax year's allowance into the ISA that matures in March 2024 (so it only contains subscriptions from a previous tax year), then you're free to do whatever you like with it.

    Opening a new ISA and funding it with a transfer from that ISA (using the new ISA provider's proper transfer process) will ensure it keep it's ISA 'wrapper'. Just make sure you don't request the transfer to be carried out before the existing one matures in order to avoid paying a penalty.
  • Madison
    Madison Posts: 174
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    Moneybox have just advised me that the rules don't allow me to transfer a cash ISA from 2022/23 into a new account in the current tax year as I've already paid into a cash ISA with another provider for this year, and would therefore be exceeding my allowance... 
  • refluxer
    refluxer Posts: 2,523
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    Madison said:
    Moneybox have just advised me that the rules don't allow me to transfer a cash ISA from 2022/23 into a new account in the current tax year as I've already paid into a cash ISA with another provider for this year, and would therefore be exceeding my allowance... 
    That's not correct. Unfortunately, even bank employees often don't fully understand ISA rules.
  • xylophone
    xylophone Posts: 43,804
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    Moneybox have just advised me that the rules don't allow me to transfer a cash ISA from 2022/23 into a new account in the current tax year as I've already paid into a cash ISA with another provider for this year, and would therefore be exceeding my allowance... 

    Whoever told you that is wrong.

    https://www.moneyhelper.org.uk/en/savings/types-of-savings/cash-isas
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