Transfer Cash ISAs Discussion Area

Baldur

jamesw1 wrote: »

I'm looking to transfer my ISA to Halifax but am confused by the following question asked when applying:

Do you already have a cash ISA with us or any other provider and have funded it in this tax year?

I have funded my ISA this year (which is the same ISA I've had for the past two years), so I say Yes and it says that I cannot apply if I already have created or funded an exisiting ISA this year.

This seems to be the case with a lot of the ISAs I've looked at. Am I missing something? From the quotes above, it seems that this should be allowed?

If you went into a Halifax branch to arrange the transfer, there would be no problem whatsoever - it's simply the limitation of the online application process. It's merely there to prevent subscriptions to multiple ISA accounts in the current tax year.

marting2

Baldur wrote: »

If you went into a Halifax branch to arrange the transfer, there would be no problem whatsoever - it's simply the limitation of the online application process. It's merely there to prevent subscriptions to multiple ISA accounts in the current tax year.

But you will still have had investments in two separate ISAs in the same tax year wouldn't you? Is that OK if you move funds from one to another i.e. different from actually having two running at the same time with different providors? If it is OK to do this why not just answer "no" to the online question, even though this it is not technically correct?

Baldur

marting2 wrote: »

But you will still have had investments in two separate ISAs in the same tax year wouldn't you?

No - the rule is that you can only subscribe (pay new money into) to one Cash ISA per tax year. All you are doing with an ISA transfer is transferring the same ISA from one provider to a different one, with the old account being closed when the transfer takes place.

Is that OK if you move funds from one to another i.e. different from actually having two running at the same time with different providors?

See above.

marting2

Baldur wrote: »

No - the rule is that you can only subscribe (pay new money into) to one Cash ISA per tax year. All you are doing with an ISA transfer is transferring the same ISA from one provider to a different one, with the old account being closed when the transfer takes place.
See above.

OK so all you need to do in respect of current year's ISAs is to ensure that after you have made a transfer (which may be a combination of previous years' ISA and current year's) you don't pay any more than the maximum allowable in 2010-11 into the new ISA (including the current year's amount transferred), as presumably the new provider won't know how much is from prior years and how much is from current year.

Baldur

marting2 wrote: »

OK so all you need to do in respect of current year's ISAs is to ensure that after you have made a transfer (which may be a combination of previous years' ISA and current year's) you don't pay any more than the maximum allowable in 2010-11 into the new ISA (including the current year's amount transferred)

Correct.

...as presumably the new provider won't know how much is from prior years and how much is from current year.

The old provider is required by the HMRC guidance to inform the new provider of the total amount of current tax year's subscriptions that the transferred funds contain.

WhiteSpace

jamesw1 wrote: »

I'm looking to transfer my ISA to Halifax...

Do you already have a cash ISA with us or any other provider and have funded it in this tax year?

Does the Halifax ISA actually allow transfers in? (Or is it only available from new?)

rb10

WhiteSpace wrote: »

Does the Halifax ISA actually allow transfers in? (Or is it only available from new?)

All Halifax ISAs are available for both transfers in and new money.

Note that if you transfer in, their ISA Promise applies to you. This means that you get interest from the day they receive the transfer form (rather than waiting until they receive the money).

rosepetal37

rb10 wrote: »

Note that if you transfer in, their ISA Promise applies to you. This means that you get interest from the day they receive the transfer form (rather than waiting until they receive the money).

I think Halifax have withdrawn this promise now

I only say this because I rang up to query if they'd received both of my transfer in forms as my building society one had been done (very efficiently IMO), whereas my NatWest one was still open within my online banking, and she asked "did we have the promise when you applied"

Baldur

rosepetal37 wrote: »

I think Halifax have withdrawn this promise now

Not according to their website - http://www.halifax.co.uk/isas/cash-isa-promise/

MarkyMarkD

rosepetal37 wrote: »

I think Halifax have withdrawn this promise now

I only say this because I rang up to query if they'd received both of my transfer in forms as my building society one had been done (very efficiently IMO), whereas my NatWest one was still open within my online banking, and she asked "did we have the promise when you applied"

She meant "had we introduced the promise before you applied" not "did you apply before we withdrew the promise".