Transferring an ISA that's had subscriptions this tax year

AstonSmith

Hey all. I want to transfer my cash ISA to a new provider.

As I was filling out the application form, it asked me to make a declaration that I "Have not and will not make contributions to another cash ISA this tax year".

Since I have already added money to it this tax year, does that mean I can't transfer it until the next tax year? Or does the transfer imply that it's the same ISA, rather than closing one ISA and opening a new one to transfer the money into?

Mark_d

It's asking that you only make payments into that cash ISA and no other in this tax year

AstonSmith

Thanks but I've already paid into the old cash ISA, that's the confusion here.

Mark_d

AstonSmith said:

Thanks but I've already paid into the old cash ISA, that's the confusion here.

I think it's about making contributions in the future.  They already know that you've contributed to the old ISA!

So go transfer the ISA and keep adding to the same pot....as long as you don't go over the £20k contribution limit this year

PRAISETHESUN

AstonSmith said:

Hey all. I want to transfer my cash ISA to a new provider.

As I was filling out the application form, it asked me to make a declaration that I "Have not and will not make contributions to another cash ISA this tax year".

Since I have already added money to it this tax year, does that mean I can't transfer it until the next tax year? Or does the transfer imply that it's the same ISA, rather than closing one ISA and opening a new one to transfer the money into?

It's a hangover from the old ISA rules where you could only contribute to one cash ISA each tax year. The rules have changed this tax year and not all the banks have updated their documentation. As far as HMRC are concerned as long as you don't exceed £20k across all ISA products they don't care if you subscribe to multiple accounts.

The ISA provider is unlikely to find out unless you tell them so you can either make the declaration knowing you will fall foul of it (but knowing you won't fall foul of HMRC's rules which ultimately are the thing that really matters), or open an ISA with another provider who doesn't have any such restrictions in their T&Cs.