Transfer Cash ISAs Discussion Area

wearside_2

paulo13 wrote: »

I hope this is just a momentary worry, but I've logged in to my previous ISA and the money has gone. All good and well, but when I log in to my new ISA it hasn't arrived there! Is there likely just to be some delay before it pops up in my new account, or should I start crying?

My old ISA was closed on 6 May. Cheque arrived at new provider on 14 May and new ISA opened on 20 May with interest backdated to 14 May. Question: who has my interest from 6 May to 14 May?

paulo13

Cool, thanks for the answers!

fitshace

I wonder if anyone can help as I am getting conflicting answers.

I have been saving by SO into an ISA for the last 2 years (never used my full allowance).
Because it's a SO I have paid some money into it for this year.
My question: can I open with a new Bank (that allows transfer in) and move all the money from my current Bank and carry on topping up the new one with a SO?

Thanks in advance.

10_66

fitshace wrote: »

...My question: can I open with a new Bank (that allows transfer in) and move all the money from my current Bank and carry on topping up the new one with a SO?

Yes, you can do this. You must keep all of this year's allowance in the same ISA.

MarkyMarkD

wearside wrote: »

My old ISA was closed on 6 May. Cheque arrived at new provider on 14 May and new ISA opened on 20 May with interest backdated to 14 May. Question: who has my interest from 6 May to 14 May?

Answer: there is no "your interest" from 6 May to 14 May. This is a cost to you of choosing to transfer betweeen providers.

The old provider will have had the funds until their cheque cleared. But they won't have earned "your interest" rate until then - they'll have had the money ready for clearing the cheque and earned little on it.

Mach_2

Hi guys,

Hoping for your help. I would like to transfer my old ISAs to the Santander Direct ISA. I have filled in the application form, but before I submitted came across the terms and conditions which say: "I have not subscribed and will not subscribe to another Cash ISA in the same tax year that I subscribe to this Cash ISA"

Ideally I would like to transfer my old ISAs to Santander and open up a new one for this tax year with Barclays (Golden ISA), but does the quoted sentence above mean that is not possible?

Thanks very much for your time and help.

10_66

Mach wrote: »

...but before I submitted came across the terms and conditions which say: "I have not subscribed and will not subscribe to another Cash ISA in the same tax year that I subscribe to this Cash ISA"

Ideally I would like to transfer my old ISAs to Santander and open up a new one for this tax year with Barclays (Golden ISA), but does the quoted sentence above mean that is not possible?

It's ok to do what you want to, ie to transfer previous years' ISAs to Santander (though personally, wild horses wouldn't make me go near them), and to open a Barclays Golden ISA issue 2 for this year's subscription. If you want to open the Barclays Golden ISA, I would do so before 1 June, as they're going to withdraw the bonus from it for accounts opened after that date.

mogador

I've noticed several references to the need to sign 'false' declarations
when transferring ISAs with no new subscription, and this bothers me too.
There is a very useful booklet 'Guidance Notes for ISA Managers (2008)'
for all to read on the HMRC website. Section 11 deals with ISA transfers,
including what I would like to call 'TINNS' - Transfer of ISA with No New
Subscription [Subscription here means paying-in, not signing-up].
11.33 and 11.34 show model application and transfer forms for ISA
providers to use, and these include italicised text for wordings which
may be deleted when no new money is being subscribed in the current
or future years.
So HMRC have allowed for this possibility, and have provided acceptable
amendments to the forms. But try telling this to the ISA providers!
They will say that the wording comes from HMRC and cannot be altered,
if you alter the text they will not accept the forms.
So I can only suggest we say, before signing, 'under duress' and
write ud before the signature.
This is my first contribution, I hope it answers more points than it raises.

MarkyMarkD

There is no need to amend standard ISA forms or to write "under duress" or any similar nonsense.

HMRC's wording is standard wording which is acceptable whether or not you are subscribing. Signing the wording simply makes any subscriptions you DO make, acceptable as ISA subscriptions. You cannot subscribe, without paying new money into your account, so you are not breaching anything by signing a form which says that you intend to subscribe.

Whilst HMRC's guidance offers the option to providers to use specific forms for non-subscribing customers, it does not require them to do so and none of the cash ISA providers do so - simply because they are pointless.

If a cash ISA provider chose to offer both types of forms, half the customers would fill the wrong one in, and then complain when they had their subscriptions rejected. Not a good idea at all!

HMRC monitor contributions to ISAs, not ISAs opened. An open ISA with no subscriptions is not an ISA as far as HMRC are concerned. So completing 100 "I wish to subscribe to an ISA for the 2009/10 tax year" forms won't get you in any trouble at all, as long as you don't actually subscribe to any more than one of them.

Mach_2

Thanks very much for your help 10_66 and everyone else for clearing up the subscription issue - it's pretty scary for people like me who don't fully understand the ins and outs, so really great to get some reassurance and good advice.

Thanks again,

Mach