How to transfer an ISA

Retired couple looking at paperwork — *Transferring an ISA is a relatively simple process, but worth getting correct if you want to keep the tax benefits*

(Image credit: Eleganza via Getty Images)

Transferring an ISA can bring with it a number of perks, such as better customer service, higher interest rates or lower fees.

But there are rules to consider before doing a transfer to make sure you don’t lose any tax-free benefits.

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How to transfer an ISA to another provider

The main thing to remember when transferring an ISA is to not withdraw the money first.

Instead, you need to contact the provider of the ISA you want to transfer to. The provider should give you an ISA transfer form for you to fill in.

If you don’t follow this process while transferring a stocks and shares or cash ISA, they will lose their tax-wrapped status.

Bear in mind, not all ISA providers will allow you to transfer your account to them, so make sure you check beforehand.

Also note that if you’re transferring from stocks and shares ISA to another stocks and shares ISA, you may have to pay an exit fee to your current provider.

How long does it take to transfer an ISA?

It takes considerably longer to transfer an ISA than a standard bank transfer.

The transfer time varies depending on the provider a person is using, however, cash ISA transfers are the fastest, typically taking no longer than 15 working days.

This will usually be slightly longer for other types of ISAs, with stocks and shares ISAs and innovative finance ISAs usually transferring within 30 days. This is because there are various additional steps to take into consideration with this type of account. For example, a stocks and shares ISA may have to be re-registered if a person is switching to a new provider.

There are ways savers could potentially make the process of transferring an ISA quicker. Discussing the transfer with both current and new providers will likely help to smooth out the process, as will ensuring all paperwork is accurate and up-to-date.

Experts typically suggest busy transfer times, such as the end of the tax year, should be avoided for those hoping to secure a fast transfer.

If you are unhappy with the length of time your ISA transfer has taken, you should contact the ISA provider. If you deem the response unsatisfactory, you can directly contact the Financial Ombudsman Service, with evidence of your transfer request.

Our guide on ISAs vs savings accounts looks at the pros and cons of these types of accounts.

Does an ISA transfer count as a new ISA?

An ISA transfer does not count as a new ISA subscription, and while you may need to set up a new account to move your money to, the savings can also be transferred to an already existing ISA.

The money you have already put into your ISA will remain tax-free even if you transfer it to another ISA, and you can continue to build on the savings you have already amassed.

There isn’t a limit on the number of times a person can transfer an ISA in one year.

Does transferring an ISA affect the annual ISA allowance?

An ISA transfer does not count towards your annual ISA allowance.

If you make a subscription to an ISA during the current tax year, that contribution will count towards your annual allowance of £20,000. This is regardless of whether or not you later transfer it to another ISA. Any transfer you make of the subscription will not reset or increase the limit.

For example, if you deposit £1,000 into an ISA, you will have used £1,000 of the £20,000 allowance, leaving £19,000 available. However, if the money is then transferred to a different ISA, the transfer itself will not count as a new subscription. Therefore, the ISA investor will still have £19,000 of the allowance remaining in the same tax year.

There have also been recent rule changes concerning ISAs that benefit those who wish to hold multiple accounts, and potentially make multiple transfers.

There are four different types of ISA (cash ISAs, stocks and shares ISAs, Lifetime ISAs and innovative finance ISAs) and previously, savers could only put money into one of each type of ISA each tax year.

As of 6 April 2024, you can now open and pay into more than one ISA of the same type in the same tax year, as long as the amount does not exceed the maximum allowance of £20,000. This doesn’t include the Lifetime ISA. You can only pay into one Lifetime ISA each tax year, up to a limit of £4,000 (which is included in the annual ISA allowance).

The change allows "greater flexibility”, explains Andrew Prosser, head of investments at InvestEngine. He adds that it lets savers and investors “try out different accounts if they find a better offer elsewhere, such as lower account fees and the opportunity to invest in different types of funds”.

While transfers between providers do not impact ISA allowances, savers will have to bear potential fees in mind when moving their money. In certain circumstances, there may be a penalty payment or a fee for transferring an ISA, which is why it is important to read the terms set out by both old and new providers.

A new provider may also levy an ongoing charge or a platform fee once the ISA is transferred. Checking this before the transfer process begins could reduce the chances of a nasty surprise later down the line.

We compare cash ISAs versus stocks and shares ISAs in a separate piece.

Can you transfer an ISA to another person?

The simple answer is no. ISAs cannot be transferred to another person.

"The tax benefits for an ISA account are only intended for the person who opened it. If you'd like to give the money in your ISA to someone else, you'd have to close the account and transfer it there,” says Prosser.

There are, however, certain ISA transfer rules that come into play if your spouse or civil partner passes away.

In this case, you can inherit their ISA allowance, but will need to contact the relevant provider for further information.

Since April 2015, people have been able to make use of the ISA benefits belonging to their deceased spouse or civil partner if they passed away on or after 3 December 2014.

This does differ to inheriting the money contained within the ISA, as these funds are allocated to whoever was nominated in the individual's Will.

Can you transfer shares from a general investment account into an ISA?

You can transfer funds from a general investment account (GIA) into a stocks and shares ISA, although it will count towards your annual £20,000 allowance.

HMRC doesn’t allow the direct transfer of investments from a non-ISA account to an ISA, with investments having to be sold first.

However, ISA providers can carry out a ‘Bed and ISA’ transaction. It involves selling shares or funds held within a GIA and then repurchasing them within a tax-wrappered ISA.

The time it takes for a Bed and ISA to complete depends on the provider, but it can be as long as 10 working days.

Can you do partial transfers?

You are allowed to make partial transfers between ISA providers, regardless of when the money was paid into that account. This is following a rule change which took effect in April 2024.

Under the old rules, customers had to transfer all of the funds from one ISA of that type from the existing tax year or nothing at all. The change means you can keep some money with your existing provider and retain that ISA.

What are the benefits of transferring an ISA?

There are several benefits to transferring an ISA. For example, finding a new ISA may help you secure a better return on savings or investments.

Transferring an ISA to another can help you consolidate your ISAs and make it easier to manage them all too.

Additionally, an ISA transfer can help with risk management. For example, cash ISA savers may wish to avoid the eroding impacts of inflation by putting their money into a stocks and shares ISA. This does carry risk, and investors could get back less than they initially put in. However, in the long term, there is potential to grow your money.

In contrast, those looking to substantially reduce risk for short-term goals may wish to transfer money out of investments and into cash savings, particularly if they wish to access their money in the near future.

Transferring a stocks and shares ISA from one provider to another can mean lower ongoing fees like annual platform charges.

Transferring an ISA can bring the perk of better customer service too, if you’re unhappy with your current provider’s level of support.

Rebekah is a news and personal finance journalist with extensive experience in digital journalism. She is currently Newsletter Editor (Global) at TheWeek.com, and a regular contributor to The Week Unwrapped podcast. Rebekah was previously Senior Personal Finance Reporter at Express.co.uk. Her interests include pensions, savings and money saving tips.

With contributions from

Sam WalkerWriter