Mid-year ISA transfer to another of the same type

HarvieDangerHarvieDanger Forumite
1 Post
MoneySaving Newbie

Hi all, would appreciate your help with this.

I understand you can pay into only one of a particular kind of ISA per year (i.e. one stocks and shares ISA), and if you decide to transfer into another of the same kind, you’re meant to move the full value. I’m referring to this guidance on gov.uk: “If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it."

I’m a bit unclear if that means you must transfer the full value of the ISA if you’ve been investing in it for years, or that you just need to ensure you’re transferring everything that was invested during the current tax year? For example, if I was paying in £500 per month on the 10th of each mon, and I wanted to transfer to a different stocks and shares ISA part way through the year, I would need to move £500 x 9 months (9 monthly contributions from April through December) = £4500?

If it’s the latter, and I transfer out the amount that was invested during the current tax year and stop any further payments in, is there any other technicalities to be aware of to avoid breaking any rules? 

Appreciate your help clarifying this point. 

Replies

  • edited 27 December 2020 at 4:49PM
    masonicmasonic Forumite
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    edited 27 December 2020 at 4:49PM
    If any of the current year's contributions are to be transferred, then they must be transferred in full. They can be left with the existing provider, or move to the new provider, but they cannot be split. Previous year contributions can be transferred in whole or in part, along with current year money, or alone.
    If you transfer your current year's contributions, then your new provider holds your current year ISA and you can use the rest of your annual allowance with the new provider, but you must not pay anything more into the ISA that has lost your current year money.
    Note that some S&S ISA providers do not permit partial transfers (they are not obliged to do so)
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