ISA Transfer Rules

Ditz

Is is possible to do both of the following within the same tax year:

1) Open a new ISA
2) Transfer that ISA into another new ISA.

I'm pressuming not as wouldn't that count as opening 2 new mini cash ISAs within 1 year?

The reason I ask is that I opened an NS&I Direct ISA in November 2007. The rate then dropped but I assumed I couldn't transfer it anywhere until 2008/09.

Similarly, if I open a Barclays Tax Haven ISA in 2008/09 will that stop me transferring by NS&I ISA elsewhere?

jem16

You can do what you describe.

You can open as many ISAs as you want in each tax year but you are only able to fund one.

So you can transfer that NS&I ISA now - you don't have to wait until 08/09. The only rule is that you must transfer the whole ISA when it is a current tax year's ISA. You cannot only do a part transfer as you can with previous years' ISAs.