Transferring from one ISA provider to another
ISA account holders can transfer all or a portion of their savings or investments from one ISA provider to another at any point, subject to each ISA provider's terms and conditions.
It can be to a different type of ISA or the same type, however this will be dependent upon the new provider accepting transfers and you taking the correct steps. The investment can have been made this tax year or in previous tax years.
Before you start any transfer, you should check whether your current or new providers will charge a fee for transferring or whether you may lose any benefits.
The transfer itself is handled by the provider of the ISA that you are transferring into and can take several weeks to complete. They should outline the steps for you, starting by providing you with an ISA transfer form.
It’s important not to withdraw and transfer your money yourself as you will lose the tax advantages of the ISA.
Transferring ISAs is common. For Cash ISAs, some people find that they can get better rates by transferring. For example, the initial headline interest rate that you opened the account with may have fallen in subsequent tax years.
Transferring a Cash ISA into a Stocks and Shares ISA (and vice versa)
You can transfer a Cash ISA into a Stocks and Shares ISA, and vice versa. We offer the ability to transfer to J.P. Morgan Personal Investing, with contributions going into our risk-rated managed global investment portfolios. Discover how to transfer your ISA to J.P. Morgan Personal Investing.
You may, for example, decide that you wish to transfer money from a low-paying interest rate Cash ISA into a Stocks and Shares ISA. If you are happy to take on some investment risk over the longer-term, you could outpace inflation and generate stronger returns than in a cash account. You should always have easily-accessible emergency savings in place alongside your investments.
Alternatively, your Stocks and Shares ISA may have grown, and you might now decide to reallocate some of your funds to a Cash ISA to manage your risk. You have the flexibility to do that. This could be, for instance, if you are now close to retirement and wish to use cash savings alongside your pension, without the risk of potential future investment losses.
'Bed and ISA' transfers – What they are, and why they matter when transferring non-ISA assets, into an ISA
A 'Bed and ISA transfer' involves moving investments that you hold outside a 'tax-wrapped' environment (for example, in a General Investment Account), into the tax-wrapped environment of your Stocks and Shares ISA.
Assets cannot be transferred directly into an ISA due to HMRC rules, but you can sell assets outside an ISA, then simultaneously buy the same assets back within the ISA. This pair of transactions mirrors one another, with the aim of minimising your exposure to movements in the stock market, that may occur in the time between buying and selling.
The aim is to end up with the same portfolio as before, but with everything inside an ISA wrapper. Once the transfer has taken place your investments will be free of tax on any potential growth or returns.
There may be tax implications arising from the sale of assets outside the ISA. We go into detail about Bed and ISA transfers in this guide on tax efficiency in investing.
J.P. Morgan Personal Investing's wealth experts are on hand with free financial guidance should you need to speak to someone about your options, including ISA transfers. Book a free call today.
Risk warning
As with all investing, your capital is at risk. The value of your portfolio with J.P. Morgan Personal Investing can go down as well as up and you may get back less than you invest. Tax rules vary by individual status and may change. This is general information, not personalised tax advice. Before you transfer, check you won’t lose any benefits and that you know what charges you may incur.
When transferring a Stocks and Shares ISA, your money will be out of the market for a few days during the transfer, so you could potentially miss out on returns during that time. If you transfer a Stocks and Shares ISA to a Cash ISA, your assets will first be sold and then come to the new provider as cash, and there may be charges payable. If you transfer a Cash ISA into a Stocks and Shares ISA, you may wish to check when you will stop receiving interest. If you do move assets from one Stocks and Shares ISA to another, or to a Cash ISA, you should be aware that you may face transfer charges, and should check you are happy with them.