Stocks and Share ISA Transfer Clarification

Dazzathestag · 25 April 2017 at 9:06PM

I am receiving two different answers to this question and would like some clarity and ideally a link to something that cant be questioned ie an ISA rule book - if one even exists.

If I have a stocks and shares isa for 2017/2018 that I have already contributed to in this tax year, lets says £1000, can I transfer it to a new S&S Isa provider and then contribute some or all of the remaining £19000 allowance.

Some have said that this is possible as long as I transfer the existing £1000 from this years current contribution to the new S&S ISA provider
Others have said that I can transfer it but once transfered I cant add any more to it as that would count as contributing to more than 1 S&S Isa in a single tax year.

Usually on an ISA transfer form it clarifies if you are transferring from the current tax year and if you are it states you must transfer the whole amount and not part of it. I always assumed that this was so any Isa provider knows exactly how much of the current years Isa allowance has been used because it would always have to "move around" in one lump sum

Hope that makes sense and someone can help with the appropriate evidence

Thanks

le_loup · 25 April 2017 at 9:10PM

Dazzathestag wrote: »

If I have a stocks and shares isa for 2017/2018 that I have already contributed to in this tax year, lets says £1000, can I transfer it to a new S&S Isa provider and then contribute some or all of the remaining £19000 allowance.

Yes.
No ifs, buts or caveats.

jimjames · 25 April 2017 at 9:19PM

Dazzathestag wrote: »

Hope that makes sense and someone can help with the appropriate evidence

Thanks

You don't need evidence. It's all standard HMRC rules, just check them. As above you have to move the whole balance of this year's ISA but once moved you can pay in more

Dazzathestag · 25 April 2017 at 9:31PM

Thats great thanks - the issue is is that I do need the evidence, clearly if two other people are giving me conflicted replies I need to show from somewhere who is right and who is wrong. So many people will guess at answer without any firm evidence ( which frustrates me greatly )

Before posting I had looked at th HMRC site and the only page I could find was so basis it didn't go into any detail. In fact the most common response to my questions is when some reminds you that a rule is that you can only contribute to one S&S Isa in any one tax year, and on the face of it what I am asking and your reply seems to indicate you can contribute to more than one.

Don't get me wrong I agree with both of your answers, I just need some firm evidence, from say a HMRC / FCA website. Can you point me in the right direction ?

Thanks

Darren

jimjames · 25 April 2017 at 9:36PM

You are right. You can only contribute to one S&S ISA per year. If you transfer you are still only contributing to one. After the transfer the old one no longer exists.

It's exactly the same for cash ISAs and S&S ISAs and has been for the last 18 years.

Maybe it would be better if you can provide the info you have that says it isn't possible.

Maybe look here?
http://www.hl.co.uk/investment-services/isa/transfer-an-existing-isa

bowlhead99 · 25 April 2017 at 9:38PM

Dazzathestag wrote: »

Don't get me wrong I agree with both of your answers, I just need some firm evidence, from say a HMRC / FCA website. Can you point me in the right direction ?

Here are the guidance notes which the government provide to ISA managers. They're pretty comprehensive and don't try to dumb down the rules.

https://www.gov.uk/government/publications/guidance-notes-for-isa-managers

Dazzathestag · 25 April 2017 at 9:48PM

I like that answer - so maybe the reason why I cant find the evidence is that it is never in question to start with. So I need to think about the Isa as a movable product rather that a Natwest Isa or a Fidelity Isa. The Isa is the Isa which can simply "Sit" with a a particular organisation at any one time and therefore as you say I'm only ever adding to the same Isa just with different organisations.

Thanks

Dazzathestag · 25 April 2017 at 10:30PM

That's a great link - thank you. It even talks about what happens to over subscriptions when transferring between 2 different Isa Managers which in itself infers that it is possible - perfect for showing my colleagues.

Thankyou to all for the help

badger09 · 26 April 2017 at 4:56PM

I’ve been using the 'envelope' metaphor for many years in relation to ISAs, in fact I’ve just updated this from my 2012/13 version.

You have paid say £1000 into your 2017/18 S&S ISA envelope held on ‘X platform’. You then ask ‘Y platform’ to look after your 2017/18 envelope for you by completing their ISA transfer form.

‘Y platform’ contacts ‘X platform’, who then pass your envelope over to ‘Y platform’. Once your envelope is safely in the hands of ‘Y platform’, you can carry on paying into your envelope up to your £20000 overall limit.

You're only paying into one envelope - its just being looked after by ‘Y’ rather than ‘X’

Dazzathestag · 26 April 2017 at 5:06PM

The only problem is i have run out of envelopes - do they need to be a special size ?

Only joking of course, its a great illustration - thanks

Stocks and Share ISA Transfer Clarification

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