Transferring Flexible ISA

TheBanker

Hi

Sorry for another post on this subject but I want to triple check I'm right before I do something that could potentially be costly!

I have a cash ISA with Zopa which only contains current year subscriptions. I've paid in £15k during the year, and withdrawn £5k, so my net contribution is £10k and, according to Zopa I have £10k left of my allowance (although I don't, as I have another ISA which I've contributed about £2k to).

I want to transfer the Zopa ISA to Trading 212. 

I understand that if I want to protect my full allowance, I need to replace the £5k I've withdrawn back into the Zopa ISA before I do the transfer. And that if I don't do this, I won't be able to return the £5k to the Trading 212 ISA, i.e. I will forfit that £5k of my allowance for this year.

I'm asking because I don't have £5k cash sitting around, but I will shortly have this sum from maturing fixed term and regular savers (not ISAs). So just want to confirm that I am best to wait til the non-ISA money becomes available, add it to the Zopa ISA, transfer the ISA, then if I want to I can withdraw the £5k from Trading 212 whose ISA is also flexible?

GrumpyDil

The Trading 212 website suggests you could do a partial transfer so possibly transfer all bar a small sum to keep the existing ISA open and then put the 5k back into the ZOPA ISA and then complete a full transfer?

https://helpcentre.trading212.com/hc/en-us/articles/360007081177-Can-I-move-part-of-my-ISA#:~:text=Yes, you can.,/or in-specie transfers.

TheBanker

GrumpyDil said:

The Trading 212 website suggests you could do a partial transfer so possibly transfer all bar a small sum to keep the existing ISA open and then put the 5k back into the ZOPA ISA and then complete a full transfer?

https://helpcentre.trading212.com/hc/en-us/articles/360007081177-Can-I-move-part-of-my-ISA#:~:text=Yes, you can.,/or in-specie transfers.

Problem with that is, as far as I know, Zopa don't allow partial transfers out. Seems to be all or nothing. 

I guess I could withdraw £5k from T212 and pay it into Zopa, then transfer the Zopa ISA to T212. That would preserve my full allowance, I think. 

masonic

TheBanker said:

I guess I could withdraw £5k from T212 and pay it into Zopa, then transfer the Zopa ISA to T212. That would preserve my full allowance, I think. 

This would be the workaround, yes.