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Can I Easily Transfer An ISA and Get A New One

by Jim ONeil on May 18, 2011

in ISA's Individual Saving Accounts

This question has come across our desk in many different forms, so we will try to help make this as clear as possible. The language on the HMRC website is very confusing to say the least. It takes several readings in most cases to fully understand exactly what they are trying to say.

Transferring an ISA and opening a new one are two completely different acts. If someone is transferring their ISA from one establishment to another, it has probably come to maturity and they are looking to take advantage of a better rate.

This is perfectly acceptable whether you plan on opening a new account for the current tax year or not.

The law specifically states that you can only OPEN one cash ISA account per year. If you are transferring an account, you are not opening up a new one. Having said that, it is perfectly legal to transfer an existing ISA to a new provider and at the same time open up a new account.

In fact, if you are opening a new account, the new provider may be able to handle the transfer for you. Actually, we recommend asking them if they offer this service as it can avoid any challenges that may arise if you try to handle the process on your own.

Steve B

No. Would you pay UK tax on dividends and capital gains?

Roger Baines

No, not unless you continue to be 'UK Resident' (and continue to pay UK Tax …).

If you move abroad (and thus are no longer UK Resident for Tax), I believe you are permitted to leave it invested in UK, but you no longer qualify to add anything to it.

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