Multiple years ISAs in one account

PawelK

Hello. 

I have a query about some technicality. If I am transferring into a new ISA account provider my two past years of ISAs (40k+interest) and then I will also add this year's 20k allowance, once there is 60k+ in the account, all years of ISAs will blend into one total amount and going forward it will be impossible to distinguish which part belongs to which year, right? 

And in the future if I go over protected 85K by an institution, can I just move part of it to a different bank?

Thank you.

eskbanker

There is a distinction made between current year contributions and those from prior years (collectively, not individually, i.e. no tracking by year of contribution).

In principle you can make partial transfers out to another provider, but not all support this....

Ayr_Rage

The provider will keep records of your annual subscription plus transfers in and you should do the same to avoid mistakenly oversubscribing.

You can transfer ISAs as and when you wish, however not all providers will allow partial transfers and some will not let you come back as a customer once you have closed your account.

This barring quirk is more prevalent with the newer app and online only providers.

PawelK

Thank you both. I have recently opened moneybox and transferring two years of ISAs there from VM. I have one more ISA with VM but in a separate account which matures in September. So, after all, I should have 60k+ in moneybox and if I add another 20k to that goal in the next tax year, that will be my max I want to keep with one bank unless the 85K protected cap will increase. 

mebu60

When one of my cash ISAs breaches the £85k I do a partial transfer out reducing the balance to around £80k so that it will take a couple of years or so before having to do again.