New ISAs for old

witsend901

I've read this thread and HMRC guidelines on opening cash ISAs and I'm still confused. I know you can only open one per tax year to contribute new money to it.

However, I can't find much about opening cash ISAs strictly for moving funds from existing cash ISAs, in order to get a better return. If so, do you have to close the old ones down and transfer the whole amount. I'm thinking of transferring some old ISAs to a fixed rate but keeping part in an existing instant access ISA.

Can anyone shed any light on this?

debbie42

witsend901 wrote: »

However, I can't find much about opening cash ISAs strictly for moving funds from existing cash ISAs, in order to get a better return. If so, do you have to close the old ones down and transfer the whole amount.

Current rules are that you must transfer the whole amount for ISAs opened with the current tax year's allowance, but this restriction doesn't apply to previous years. Some providers may not allow part transfer though.

If you are transferring the whole amount, then you must advise the new provider. Don't simply close it down yourself or the tax wrapper may be lost.