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Cash ISA transfer troubles
sol2017
Posts: 122 Forumite
I applied for Tesco Instant Access Cash ISA on 23rd March and asked for Isa transfer. Transfer form arrived on the 1st of April which I posted back the next day (using prepaid envelope). My ISA was transferred from my old provider on the 17th April. The balance is correct however my remaining allowance is displayed as 20k minus the current balance.
Can someone please help me to understand:
1) are the timescales above acceptable for cash isa transfers? I feel it's been a very slow process.
2) I was expecting that my transfer would take in the previous tax year and it wouldn't affect my this year's allowance. Was I wrong thinking that?
3) when should the interest be calculated from?
Can someone please help me to understand:
1) are the timescales above acceptable for cash isa transfers? I feel it's been a very slow process.
2) I was expecting that my transfer would take in the previous tax year and it wouldn't affect my this year's allowance. Was I wrong thinking that?
3) when should the interest be calculated from?
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Comments
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A few weeks is pretty normal especially if relying on posting things around but yes if you only transfered in previous tax year contributions you should have your full £20k allowance remaining this year. Suggest you call or send a secure message to Tesco Bank and ask them to investigate - probably a human error somewhere that needs correcting.0
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Cash ISA transfers should be completed within 15 working days, as per https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager#cash-isa-transfers:1) are the timescales above acceptable for cash isa transfers? I feel it's been a very slow process.
Assuming the instruction (in the form of completed paperwork) was received by Tesco on 3 April, the 15th working day thereafter (given Easter) is next Friday (26th), so it hasn't been anything like as slow as it could have been!Cash ISA to cash ISA transfers must take place within 15 business days of the transfer instruction being received by the new ISA manager, unless the investor stipulates that the 15 days starts on a later date. This 15 days is broken down as follows:
The new ISA manager has 5 business days to forward the instruction to the old ISA manager.
The old ISA manager has 5 business days in which to send the funds and information to be provided to the new ISA manager.
The new ISA manager has 3 business days to apply the funds to the new ISA.
The other two days are to allow for time taken for first class post between managers.
The recommended practice is that the providers synchronise so that there is no loss of interest, i.e. old provider pays interest up to one date and the new one pays from the following day, as per appendices linked from https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager#date-of-transfer-1:3) when should the interest be calculated from?Interest on the transferred funds should be backdated either to the date on the cheque, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier.
For electronic payments, interest on the transferred funds should be backdated either to the date the payment was initiated, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier.0 -
Thanks very much for your answers, it's clearer now. I guess I just thought things would progress quicker and my new ISA would be set up before the start of the new tax year. I'm one of those who thinks these things could all be done online but that's another discussion.
As suggested, I will contact Tesco regarding the remaining allowance. Thanks0 -
I transferred an ISA to Tesco about a year ago. It took several weeks.Reed0
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My suspicion would be that ISA activity will typically be slower around the beginning and end of tax years when workloads are increased precisely because many people either leave things late or try to get in quickly. Having said that, it doesn't really matter whether transfers are completed before or after the change of tax year, as this date doesn't have any significance for transfers initiated before then....I guess I just thought things would progress quicker and my new ISA would be set up before the start of the new tax year.
Even though you had to sign a paper form up front, that doesn't necessarily signify that the transfer of funds itself wasn't handled electronically, but in any case there's more to an ISA transfer than simply getting the money from A to B, hence the (maximum) timescales stated by HMRC.I'm one of those who thinks these things could all be done online but that's another discussion.0 -
I transferred my ISA to Tesco a few weeks ago and it was all previous years so should have been allowed to put another £20k in, however my allowances online and in the app showed the £20k less the amount I transferred. I rang and got a call back to say there was a system error, but they rectified it for me within 2 days.0
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Thanks, that's good to know0
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