Partial Transfers Between Existing Cash ISA's

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
6 replies 1.5K views
SopeSope Forumite
49 Posts
Part of the Furniture
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi, I'm hoping someone will be able to help with my confusion regarding the rules for transfer of funds between existing cash ISA's?

Basically, I opened a new Loyalty Cash ISA with HSBC this tax year and deposited £1 ("new" money) to activate it. I then arranged for the total balance of a previous years ISA (with Santander) to be transferred into the HSBC ISA. So far so good.

However, since doing this, I've decided I would like to transfer part of the previous years total into an existing Principality Promise ISA I have (also contains "old" ISA money), but am wondering if this would be allowed under the ISA rules?

According to this Gov.uk web page :-
If you want to transfer money you’ve invested in an ISA this current year, you must transfer all of it.
For previous years, you can choose to transfer all or part of your savings.
So, would I be entitled to transfer part of the total amount held in the new HSBC ISA to the old Principality ISA?

Any insight into this would be appreciated, cheers.

Replies

  • Archi_BaldArchi_Bald Forumite
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    You can transfer some from HSBC to Principality, assuming they allow transfers in.
    The transfer form will ask you some questions about what you want to transfer, It should be self-explanatory but if you choose to transfer any of your current year's deposit, you must transfer the entire £1 you deposited. Which presumably would be a lot less than you would want to transfer. So just go and transfer however much you want to transfer.
  • SopeSope Forumite
    49 Posts
    Part of the Furniture
    Archi Bald, thanks for the quick reply!

    My confusion arose due to the fact that the "old" ISA money had been transferred into a new ISA that has been contributed to using part of this tax year's "new" money allowance, so I was concerned that this may have an impact on my ability to transfer it out again to another "old" ISA.

    Thank you, your explanation has cleared that up.
  • colstencolsten Forumite
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    Sope wrote: »

    My confusion arose due to the fact that the "old" ISA money had been transferred into a new ISA that has been contributed to using part of this tax year's "new" money allowance

    A transfer-in, provided it is done by the new provider, does not use up any of the current year's ISA allowance.
  • SopeSope Forumite
    49 Posts
    Part of the Furniture
    colsten wrote: »
    A transfer-in, provided it is done by the new provider, does not use up any of the current year's ISA allowance.

    Yes, thanks, I understand that bit.

    So basically, I can move money between ISA's as much as I like, provided it is done by the receiving provider (using the appropriate transfer form), and it does not include any cash that has been contributed during the current tax year's allowance.
  • colstencolsten Forumite
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    You can also include your current year's contribution, as long as you transfer all of it. E.g. if you put in £5,000 this year, and tick the "transfer current year" box, you must transfer at least £5,000.

    You must also not make further deposits into this ISA in the same tax year. All further money for that year must go into the ISA you transferred to.

    This is all quite theoretical as normally you wouldn't transfer within the same year. But you can do it, and as often as you like.
  • SopeSope Forumite
    49 Posts
    Part of the Furniture
    colsten wrote: »
    This is all quite theoretical as normally you wouldn't transfer within the same year. But you can do it, and as often as you like.

    The reason I would like to move part of the cash between my HSBC Loyalty ISA and Principality Promise ISA (Issue 4) is that the latter pays a slightly better interest rate but only if no more than two withdrawals are made in any one year. So it would best suit my needs to split my cash between the two.

    Thanks for the info. :)
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