Cash ISA transfer

Hi team, I have a Cash ISA account which was opened and funded in tax year 23/24. I also made new contribution to this existing Cash ISA account is tax year 24/25. My question is am I allowed to open another Cash ISA account in another bank and transfer all (or just partial fund which was funded in the tax year 23/24) the funds from the existing Cash ISA account to the new Cash ISA account? I have read the guidance on HMRC website. Unfortunately, it does not quite answer the question so appreciate if you could advise me further apart from what is stated on HMRC website. Thanks. Oscar

Hi
You can open another cash ISA for 24/25. The transfer depends on the provider and the amount will depend on whether it is a flexible ISA or not. You should contact your providers for further information.

Hi, Thanks for the response. The ISA is flexible so the bank would allow me to transfer the funds out of it. My concern is if I am allowed to do it under ISA rules (or from HMRC perspective, not the Bank perspective). Any limit on the transfer amount? Also, is the transfer considered as "contribution"? Thanks. Oscar

Hi Oscar

Please refer to guidance at Individual Savings Accounts (ISAs)

Thanks

Hi team, I have read the guidance on HMRC website. Unfortunately, it does not quite answer the question so appreciate if you could advise me further apart from what is stated on HMRC website. Thanks. Oscar

Hi,

We can only provide general advice in this forum and provide guidance to help you make an informed decision. If the guidance does not answer your query, you will need to discuss it with your ISA provider or consider seeking professional advice.

Thank you.

My question is about savings interest. I know about £1000 tax free limit if on the lower tax rate. I also believe there is further £ 5000 tax free allowance if income is below 12570 & 5000 . I have my husband's marriage allowance 1360...would this increase my interest tax free allowance too? Thanks

Hi Auckland Jayne,
The transfer of married allowance is a cash deduction of up to £252.00 in the calculation after your liability is calculated.
Once you have exceeded your personal allowance plus starting rate, you will pay tax on your interest.
The transfer of marriage allowance will reduce this liability by up to £252.00.
Interest from ISA accounts is not taxable.
Thank you.