Transferring a TESSA Only ISA
We have been asked to clarify the rules on transferring TESSA Only ISAs. In particular, can a TESSA Only ISA (TOISA) only be transferred to another account designated as a TOISA?
A TESSA Only ISA (TOISA) is a special type of cash component ISA – one that was set up to receive the capital invested in a matured TESSA. The normal rules for transferring ISAs therefore apply: subscriptions to a TOISA may be transferred to another account designated as a TOISA, a cash mini-ISA, or the cash component of a maxi-ISA.
The ISA Regulations made provision for the capital from a matured TESSA, which had matured after 5 January 1999, to be subscribed to a cash Mini ISA, the cash component of a Maxi ISA, or to a TESSA only ISA
It should be noted that, where TESSA capital was subscribed to a TESSA-only ISA, this classification only remained until the end of that tax year after which the ISA was simply a cash ISA and, as such could be combined with or transferred to any other cash ISA held by the investor.There has been no such thing as a TESSA-only ISA since 6 April 2005.
(However a number of cash ISA products aimed at ex-TESSA savers are marketed with product names such as TESSA ISA etc.)
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