Transfer Cash ISAs Discussion Area

hostertlady

i cant get my head around the ISA ruling- this years allowance and previous years allowance?/

i have £9000 sat in a poorly rate ISA all because i dont know how to get out of keeping it there!!

I have actually paid £200 into it in May of this year so does that stop me transferring it out because I have paid into it this tax year?

its all internet based so have i got to go back pages and pages and see exactly how much i paid in last year and the year before to see how much i can transfer out??

i dont understand, it never sinks in when i read some of the posts..

all i want is a decent rate on my ISA and easy intructions on how to move it..

rb10

Hostertlady, you need to find a new ISA account, that accepts transfers in (most do, but double check). Open this, and tell this bank that you want to transfer an ISA into it from another bank. They will then take your details, and move it across for you. You are allowed to transfer the whole lot across (or just part of it if you'd prefer).

Once it's been transferred, you can still pay £3400 (or £4900 if you're 50 by 5/4/2010) into it during the remainder of this tax year.

Baldur

rb10 wrote: »

You are allowed to transfer the whole lot across (or just part of it if you'd prefer).

Quite true except that current tax year Cash ISA funds (of whatever value) must be transferred whole - no partial transfer of those; only those from previous tax years can be partially transferred.

In your case, hosterlady, as you wish to transfer the full balance, it's simply a matter of selecting a new ISA provider {see this post (scroll down for the various types of account which accept transfers)} and completing their ISA transfer form.

hostertlady

thanks rb10 and baldur.

i have printed off what you have said and will take it with me when i open up a new account.

thank you

G_M

I have actually paid £200 into it in May of this year

I don't believe you can contribute to more than one ISA in any one tax year. So if, having contributed to your existing ISA, you transfer it to a new bank, you cannot then contribute to the new one (this year).

You COULD make a further £3400 contribution to your current ISA and then transfer it it though.

MarkyMarkD

No, G_M, that is incorrect.

The original ISA provider will tell the new one that you have contributed £200 this tax year, and you can then contribute the remainder of your allowance to the new ISA.

angel253

Forgive me if I'm going over well trodden ground but can anyone confirm that I have the system correct in my head.

I have £2350 sitting in an old Abbey ISA which is not earning a great deal.
I have £3600 in a current 2009 Barcalys Golden ISA which is earning 2.58%

Can I open a new ISA now and transfer in the whole lot for a better rate or can you only open one ISA per year?

Obviously I cannot pay any more in this year but could I move it?

Thanks

10_66

Yes, you can move them both into another ISA as long as the new ISA provider accepts transfers in. You would need to complete a transfer in form when opening the new ISA.

Baldur

angel253 wrote: »

Can I open a new ISA now and transfer in the whole lot for a better rate or can you only open one ISA per year?

Obviously I cannot pay any more in this year but could I move it?

A Cash ISA transfer does not constitute 'opening' a new ISA, as far as HMRC are concerned - you are merely opening an account for the purpose of transferring your current ISA(s) to a new provider. The HMRC guidance to ISA managers says that it is not technically necessary even to complete a full ISA application form, merely a transfer form - but many providers haven't yet caught up with this approach:

The investor must always complete the transfer instruction (1). However the
application form (2) must be completed only where

• the investor is eligible to subscribe to the ISA after the transfer (the residence
condition is satisfied), and
• the investor intends to subscribe to the ISA after the transfer, and
• the (new) manager does not hold a valid, new style application form.

Leodogger

Let me see if I have got this straight. I have £3600 in an ISA from 2008 and wish to open a new ISA with a different provider that allows transfers in. I can take out the new ISA for the full year's allowance for 2009(which in my case from now is £5100 as I am over 50) and transfer in the £3600 from the previous year from the other provider?

Does this mean too that the same interest rate will be paid on the whole amount? This is the bit I have never understood. I thought you could transfer in amounts but only up to the current year's allowance, or is this actually the case ?

I am very confused