Can you deposit in an ISA and then transfer it?

sgog

I have a Trading212 and an InvestEngine ISAs from previous years.

InvestEngine is having a cashback promotion where the amount you get depends on how much you transfer.

I was wondering if I can first add the £20k to the Trading212 ISA and then transfer it to InvestEngine, effectively increasing the amount of cashback.

I'm hesitant because I'm not sure how the new "open as many ISAs as you like" rules work. Can someone help me understand it?

friolento

It's not really about opening ISAs but about depositing new money into the same type of ISA in the same tax year. You are now allowed to deposit new money, up to a total of your annual ISA allowance i.e. £20k, into as many ISAs of the same type as you like. You have always been able to spread your annual allowance between different types of ISA, and this continues to be the case. ISA transfers have never counted against the annual allowance, provided the transfers are processed by the new ISA provider.

I think your plan could work, unless the T&Cs of the offer stipulate that the money must have been in the old ISA for a certain length of time, must have been invested etc etc

You might get a better response in the dedicated ISA forum

sgog

friolento said:

It's not really about opening ISAs but about depositing new money into the same type of ISA in the same tax year. You are now allowed to deposit new money, up to a total of your annual ISA allowance i.e. £20k, into as many ISAs of the same type as you like. You have always been able to spread your annual allowance between different types of ISA, and this continues to be the case. ISA transfers have never counted against the annual allowance, provided the transfers are processed by the new ISA provider.

I think your plan could work, unless the T&Cs of the offer stipulate that the money must have been in the old ISA for a certain length of time, must have been invested etc etc

You might get a better response in the dedicated ISA forum

Thanks for the answer. These are both shares ISAs. My understanding is that last year, one couldn't deposit in one ISA and then transfer it.

eskbanker

sgog said:
My understanding is that last year, one couldn't deposit in one ISA and then transfer it.

No, you could do that last year (provided all current year money was kept together) and can still do so this year (without that restriction).

badger09

sgog said:

friolento said:

It's not really about opening ISAs but about depositing new money into the same type of ISA in the same tax year. You are now allowed to deposit new money, up to a total of your annual ISA allowance i.e. £20k, into as many ISAs of the same type as you like. You have always been able to spread your annual allowance between different types of ISA, and this continues to be the case. ISA transfers have never counted against the annual allowance, provided the transfers are processed by the new ISA provider.

I think your plan could work, unless the T&Cs of the offer stipulate that the money must have been in the old ISA for a certain length of time, must have been invested etc etc

You might get a better response in the dedicated ISA forum

Thanks for the answer. These are both shares ISAs. My understanding is that last year, one couldn't deposit in one ISA and then transfer it.

Your understanding is wrong. HMRC rules have always allowed you to subscribe (pay new money into) an ISA & then have it transferred to another provider. The rule was that current year subscriptions could only be made to one ISA of each type.  

Individual providers have always been able to choose not to accept transfers in, or to prohibit partial transfers out.