Clarification of cash isa transfer please

moomi

Hi, I had a cash isa with trading 212 and the total was around £28500. I have transferred £20,000 of this to Moneybox because the rate is better. This is where I’m confused because Moneybox say ok, that’s your allowance for the year used up,but trading212 said I can continue to pay into the remaining account with them. I’ve not had this amount of money before so when I transferred from last provider to T212, I was way under the allowed amount. Can anyone explain in easy terms for me please? Thanks for reading.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6668216/clarification-of-cash-isa-transfer-please

What do you really mean by "transfer"?

Did you withdraw £20,000 and pay it into Moneybox?

moomi

I asked T212 to move part of the isa to Moneybox as a transfer, I didn’t physically take it out myself.

GrumpyDil

Not sure what you mean still as to transfer an ISA you ask the new ISA provider (Moneybox) to request the money from the old provider (T212)?

jaybeetoo

https://forums.moneysavingexpert.com/discussion/comment/81997684#Comment_81997684

I think you’ve taken £20k out of the ISA wrapper in T212 as an ISA withdrawal, opened a new ISA with Moneybox putting in £20k (which is now no longer in an ISA) and using up your 2026/27 ISA allowance. The way you should have done it is to open an ISA with Moneybox and then instruct Moneybox to transfer into your new ISA £20k from your T212 ISA. That would have left your 2026/27 ISA allowance unused and kept the £20k covered by an ISA wrapper. You’re going to have to talk to Moneybox and T212 asap to see if it’s possible to undo taking £20k out of the ISA wrapper.

dunstonh

This is where I’m confused because Moneybox say ok, that’s your allowance for the year used up

It sounds like you haven't done a transfer but have done a withdrawal and then a new contribution.

I asked T212 to move part of the isa to Moneybox as a transfer, I didn’t physically take it out myself.

You've done that wrong then. The receiving scheme has to initiate the transfer, not the ceding scheme. Basically, you've used your ISA allowance for this year.

,but trading212 said I can continue to pay into the remaining account with them.

Providers don't monitor your ISA allowance beyond their own product use. They just report it to the HMRC after the tax year is over. HMRC then check it against all providers you've used, and if you've exceeded it, they contact you.