ISA Transfers and new ISAs

Hi, I currently have 3 cash ISAs, two with bank A and one with Bank B. None of these have had new money paid into them this current tax year - all money in them is from previous years apart from interest that may have been paid. I am thinking of transferring all the money from the 2 ISAs in Bank A to a new cash ISA with Bank C. No issue there I believe. 1. If I do this, am I still able to transfer all the money with Bank B to another new cash ISA with Bank B or even Bank D? Or, is opening this new cash ISA with a transfer from an existing ISA considered as paying into a 2nd cash ISA even though it's not new money? 2. I also have some new money to invest. Must this be paid into the new ISA with Bank C, or can I open another cash ISA for new cash?

Hi jimbo68,
You can only open 1 cash ISA each year and the transferring of one fund to another new one is stil classed as opening a new account so you would not be able to open another.
You can open other types of account just not another Cash Isa - Individual Savings Accounts (ISAs)
Thank you.

Hello HMRC Admin 20, I understand that "transferring of one fund to another new one is still classed as opening a new account". In my situation, I didn't open a new ISA account in the current tax year, but I added money into an old ISA. Can I transfer this ISA (fully) to another provider? Would this be considered as contributing to two ISA account in the same tax year?

Hi pdm9

No this is not seen as 2 accounts as it is being transferred/switched and has to be done by the ISA provider.

Thank you

Dear HMRC Admin 5 Could you please refer to the reply from HMRC Admin 20 above. You each seem to be saying the opposite to the other? Is transferring (which we all know has to be done by the banks) classed as opening a new account or not? What am I missing? I am already aware that the rule changes due in April 2024 (see government newsletter) will mean we can open multiple accounts of the same type but people still need to move money around in the current 2023/2024 tax year.

Hi,

You can open more than 1 but can only subscribe to 1 account (up to 05 April 2024). You can transfer funds from previous years at any time.

Thank you.

I would like to let you know that 1. HSBC Bank :---- Have opened one ISA account in HSBC ( LOY_ISA_Adv) ( In OCT 2023) and deposited 20000.00 GBP and withdraw only 5000.00 GBP in March 2024 . 2. NatWest Bank :--I opened one more Cash ISA in NatWest in March 2023 and deposited 20000.00 GBP 3. Halifax Bank :- Have opened one more ISA account ( March 2024) and deposited 20000.00 GBP and withdraw all amount in one day in Halifax . Here my question is can I have any tax issues or penalties from HMRC as I have two ISA accounts with 20000.00 GBP amount in each account ? (NI Number removed by admin) Requesting for your kind advice Thank you in advance.

Hi,

As you have opened two ISAs of the same type in the same tax year, you will need to contact your ISA providers and decide which ISA to close.  

The maximum you can deposit in ISAs is £20000 each year. Any interest arising in the ISA that is closed, will be taxable.  

Individual Savings Accounts (ISAs)

Thank you.

Hi, I have below situations regarding Cash ISA Tax Free accounts: Barclays: 1. One Flexible Cash ISA account- (1 Year Fixed Rate) with £20,000 opened on 24 Mar 2023 and received interest of £641.75 on 23 Mar 2024. – For Tax Year 2022-23 Lloyds Bank: 1. 1st Cash ISA Account- (1 Year fixed Rate) with £20,000 opened on 28 Mar 2023 and received interest of £767.84 on 25 Mar 2024. – For Tax Year 2022-23 2. 2nd Cash ISA Account- (1 Year fixed Rate) with £20,000 opened on 10 May 2023 and received interest of £694.05 on 2 Apr 2024. – For Tax Year 2023-24 Could you please help to clarify if there is any cash ISA over allowance for tax free year 2022-23 and need to be taxable? Many thanks,

Hi HMRC Admin, We are currently in Tier 2 - skilled worker visa and our BRP says "no access to public funds". We are planning to open a "Lifetime ISA" and would like to know if the 25% that the government adds on top of our savings yearly is considered as a public fund? are we eligible to open a Lifetime ISA now? Thanks

I am confused by the new rules for 2024-2025. I have 4 cash ISAs each with a different provider. Can I split this year's £20,000 between the four - i.e £5,000 to each ISA?

Hi Jade Wong,
You opened a cash ISA on 28/03/23 (22/23 tax year) 10/05/23 (23/24) & 23/03/24 (23/24).
As you have opened two cash ISAs in the same tax year, you will need to close one of them.
You should discuss this with your ISA providers.
Any interest arising from the closed ISA, will be taxable and should be declared to HMRC.
Individual Savings Accounts (ISAs).
Thank you. 
 

Hi,

No. Public funds would be the likes of tax-free and taxable state benefits, such as those at:

Income Tax: introduction

Thank you.

Hi oldbat,
Yes, you can.
Thank you. 


 

I have a work based pension. Can I transfer the savings from my cash isa to my pension as a lump sum without losing the tax benefits?

Hi Yes you can. You would need to arrange that with your provider and pension company Thank you

Hi, I had an Easy Access ISA with Shawbrook (opened in 23/24) I recently transferred this to Plum. Shawbrook confirmed funds sent on 16/05 & Plum confirmed receipt. However, Plum said they required paperwork from Shawbrook which they didn't get until 30/05, at which point they opened their ISA. Is this correct? My view would be that surely the Plum ISA should have been backdated to 30/05 to ensure a continuous ISA wrapper and also no loss of interest to me. Surely if there is a break between Shawbrook closing my account & Plum opening theirs then Plum would be opening a new ISA?

Sorry, I am still a bit confused with the rule of opening and transferring an ISA within the same tax year. Could you please help to advise: Case 1: If I opened & contributed 20,000 into a fixed rate 1-year ISA during tax year 24/25 in which the bank will transfer the principal and interest into a cash ISA at the end of the term. Is such a transfer from fixed rate ISA to cash ISA constitute an opening of a new accounts and has automatically wholly used up my allowance in year 25/26? Case 2: If I opened & contributed 20,000 into a fixed rate 2-year ISA during tax year 24/25, in 25/26 can I open a new cash or fixed rate ISA accounts as no fresh fund will be deposited into this old ISA during the year? In tax year 25/26, is interest earned on this old 2-year fixed rate ISA still tax free?

Hi, HMRC admin, I have the following conditions for my ISA acounts and would like to have some clarifiction. In Oct 2022 (in tax year 2022-2023), I opened a 2-year fixed rate ISA in Lloyds Bank and put £15000 in. In Oct 2023, I had £544.44 interest (I believe this part should be tax free in tax year 2023-2024). I will have another £544.44 interest in coming Oct 2024. In Apr 2023 (in tax year 2023-2024), I opened a 1-year fixed rate ISA in Lloyds Bank and put £20000 in. In Apr 2024, I had £796.49 interest. So in tax year 2024-2025, are both interests I receive above (in Oct 2024 and Apr 2024) tax free? Many Thanks.

Hi Awyatt62 Wyatt,

This is a matter between the ISA providers and not one that can be answered on this forum.

Thank you.