ISA transfers

Can you transfer an ISA?

Yes, an individual can transfer an ISA to a new ISA manager. But there are some important things to keep in mind when you do. 

The most important is for the individual not to 'do it themselves' by withdrawing the funds from the ISA. If they do, they’ll lose the ISA tax benefits, and the money paid into the new ISA will use up some of this year’s subscription limits.

They should tell their new ISA manager that they want to transfer their existing ISA into their new ISA. They’ll usually provide a form for the individual to fill in so they can arrange the transfer. Doing this will mean that all the tax benefits are preserved.  

ISA managers are legally obliged to offer transfers but there is no requirement to accept transfers.

ISA transfer rules

Is it possible to transfer to a different type of ISA?

Yes, any ISA type can be transferred to any other ISA type, though there are a few things to watch out for. 

Transfers from a Lifetime ISA (LISA): 

• If transferred to an ISA that is not a LISA, it will be treated as a chargeable withdrawal unless the individual has reached age 60 or they are suffering from a terminal illness. A tax charge of 25% of the amount transferred will be applied.  
• If transferred to another LISA, it can be transferred without incurring a withdrawal charge. 

Transfers to a LISA from a non-LISA ISA 

• The maximum that can be transferred into a LISA is £4,000 in one year. It will count towards the £4,000 annual LISA limit but not the overall ISA payment limit for the tax year.
• Partial transfers from previous year’s ISA payments are permitted however, when the transfer includes current year payments, this must be transferred in full. 

For Innovative Finance ISAs, transfers and withdrawals of non-cash investments depend on the manager’s rules. 

Proposals announced in the Budget in November 2025, mean that transfers from Stocks and Shares and Innovative Finance ISAs will not be allowed to Cash ISAs, from April 2027.

What can be transferred?

If transferring, an individual can transfer either or both of the following:

• Some or all of this year’s ISA subscriptions along with the investments they’ve bought with that money and any income arising on these investments.
• Some or all of the previous years’ ISA subscriptions along with the investments they’ve bought with that money and any income arising on these investments.

If transferring the current year’s ISA subscription, it won’t affect what remaining subscription they have left. For example, if Gillian had paid £8,000 to her Cash ISA and transfers this ISA to a new ISA manager, she can pay up to £12,000 to the new manager in the same tax year. 

ISA subscriptions are usually transferred as cash. However, they can also be transferred in-specie, meaning the investments held in the current ISA can be moved to a new ISA manager without being sold first. If an individual wants to do an in-specie transfer, it’s important for them to check whether both the current and new ISA managers support this option and to find out if there are any specific requirements or conditions they need to meet. 

How long does it take to complete an ISA transfer?

For Cash ISA to Cash ISA transfers, a transfer should be completed in 15 business days or less, unless the individual requires the 15 days to start later.

For other types of ISA transfers, a transfer should take no longer than 30 calendar days.  

What happens during the ISA transfer process?

Individuals must submit a transfer application to the new ISA manager unless the transfer is being made into an existing ISA they already hold with that manager. This can be done by having the individual complete: 

• a transfer authority form—which, while not required by ISA regulations, authorises the current manager to transfer the ISA, and 
• an ISA application form or transfer instruction. 

The new ISA manager is responsible for forwarding the completed authority form to the current manager to initiate the transfer. 

The current ISA manager must also provide the new manager with a transfer history form that includes key information about the ISA. HMRC provide transfer history form templates but managers are allowed to use their own versions as long as it contains the same information.  

This information can be sent electronically, no wet signature is required, and the information must be provided within 30 days of the transfer.  

Any income received after the ISA has been transferred should be forwarded to the new ISA manager, unless: 

• instructed to pay it directly to the individual, or
• the amount falls below the minimum threshold the new manager is willing to accept.  

A LISA can be transferred to another LISA without incurring the 25% withdrawal charge. Any outstanding bonus can be claimed by the new LISA manager. But if the transferring manager already asked the government for the bonus and it hasn’t come through yet, it’s up to them to make sure it gets passed on to the new manager. 

What happens on transfer of a flexible ISA? 

As you can imagine transferring a flexible ISA is a little more complicated. So, when someone transfers a Flexible ISA, the current ISA manager needs to pass on two key details to the new manager: 

• Net subscription in the current tax year – This means the total amount paid in, minus any withdrawals, in the current tax year. If that figure is less than zero the transferring manager reports a value of zero for the current years’ subscription.
• The date of the first subscription this tax year – This is the first payment that counts toward the annual ISA limit, not just a replacement of money previously taken out.  

Example 1

• On 6 April 2025 - £12,000 was paid in. 
• On 1 May 2025 - £5,000 was withdrawn.
• On 1 June 2025 - £1,000 replacement. 
• On 1 July 2025 - ISA transferred to new ISA manager.  The ‘net’ current year subscription was £8,000 with a first subscription date of 6 April 2025. 

Example 2

• Customer has an ISA with a balance of £18,000 at the start of the tax year.
• On 1 May 2025 - £5,000 was withdrawn.
• On 1 June 2025 - £10,000 was paid in. 
• On 1 July 2025 - £7,000 was withdrawn.
• On 1 October 2025 – ISA transferred to new manager. The net subscription in the current tax year was £0¹ with a first subscription date of 1 June 2025. 

¹ Because £10,000 was paid in and £12,0000 was taken out in the current tax year, the net figure is -£2,000. But as this is below zero, the net subscription becomes zero.  

What is the transfer date?

The transfer date is the date agreed by the ISA managers and, unless stated otherwise, will be either:

• the date specified in the ‘transfer acceptance’ section of the ISA transfer authority form, or
• the date on the individual’s transfer instruction form. 

Though there is no requirement for the existing assets or cash to be transferred on that date - that can be done later. 

The transfer date is important because it signifies when the new manager assumes responsibility for the ISA. It also marks the point from which they can begin accepting new subscriptions for the current tax year. 

Can you transfer only part of the current year’s subscriptions?

Yes, an ISA can do a transfer of only part of the current or previous year’s subscriptions, where the original ISA remains open (known as a partial transfer). ISA managers don’t need to accept these partial transfers though. 

If any part of the current year’s subscriptions stays with the previous ISA manager, they must include all such subscriptions received from the individual in their annual return of information. The new manager is responsible for reporting all current year subscriptions received from the individual after the transfer date. The existing ISA manager doesn’t need to provide details of the current year subscription to the new manager. 

An exception applies to transfers from non-LISAs to LISAs and from JISAs. While partial transfers of previous years’ ISA subscriptions are permitted, if the transfer includes any current year subscriptions, the entire amount for the current year must be transferred in full.