4 min read 22 Nov 23
If you haven’t transferred an ISA or Junior ISA between providers before you’ll probably have a few questions about how it works.
An ISA transfer is a process that lets you move money you’ve built up in your ISAs over previous tax years to a new provider and keep its tax-free benefits. The good news is there’s no limit to the number of ISAs or Junior ISAs you can transfer between providers, and you can transfer them at any time. You can also choose to transfer the total value of an ISA or just a portion of it, although ISAs that you’ve opened or paid into in the current tax year must be transferred in full. However, from April 2024 you will be allowed to partially transfer ISA funds you’ve opened or paid in the current tax year.
Transferring an ISA or Junior ISA from one provider to another might sound like a lot of work. But it’s actually a relatively simple process. Once you give your new provider your transfer instruction they do the hard work for you, contacting your existing ISA provider and managing the transfer on your behalf.
When it comes to Stocks and Shares and Cash ISAs, as a rule you should never withdraw your money if you’re looking to move it somewhere new. This will cause it to lose its tax-free status when you come to reinvest it. Always use your new provider’s transfer service to make sure your money remains tax-free.
No, your current ISA allowance will not be affected by any ISAs you transfer between providers.
This will naturally vary between providers, but the transfer must be completed within 30 days.
If there are any charges to transfer your ISA they will differ among providers. It’s always worth checking with both your current and your future ISA provider to find out if there are any fees or penalties you’ll need to pay if you transfer.
No, you can transfer an ISA of any value between providers as long as it meets the minimum investment levels of your new provider.
If you want to transfer a Lifetime ISA to a different type of ISA and you’re under 60 years old, remember you’ll have a withdrawal fee of 25% to pay.
With a new provider there could also be platform fees, ongoing charges or lock-in periods to be aware of before you make your transfer decision. But checking this before you start your transfer means there’s less chance of any surprises further down the line.
It’s also important not to presume that moving your ISA to a new provider will mean better financial returns. The performance of your investment will be determined by the portfolios or funds you invest your money in, not the provider. For cash ISAs the performance will likely be determined by the interest paid.
To find out if transferring an ISA is right for you, we recommend you speak to a financial adviser. If you don’t already have one you can find one on our ‘Get financial advice’ page.
If you are interested in transferring an ISA or Junior ISA to M&G you can find more information on our website.
The views expressed in this article should not be taken as a recommendation, advice or forecast. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.
The tax rules for ISAs and Junior ISAs may change in the future, and their tax advantages depend on your individual circumstances.
The value of your investment can go down as well as up so you might not get back the amount you put in.
Please note, your current provider may apply a charge when you transfer your investment and also that, whilst your investment is being transferred, it will be out of the market for a short period of time and will not lose or gain in value.