ISA transfers: How do you move on?

Sometimes, having owned your Individual Savings Account (ISA) for a few years, you might notice that the underlying investments no longer give you what you need.

Alternatively, because your circumstances have changed, you might wish to switch to another ISA provider with a wider choice of funds. How can you shift your investment without jeopardising the tax benefits?

How can you shift your investment without jeopardising the tax benefits?

You can transfer the value of your ISA to a different manager whenever you like. Reforms to legislation have granted much greater flexibility to ISA savers: savings held within a stocks and shares ISA can be transferred to another stocks and shares ISA, or to a cash ISA, and vice versa. Once you have decided on your course of action, you must enact an official transfer using your new manager’s ‘Transfer Request Form’; closing one ISA and reinvesting the proceeds into another is viewed as a withdrawal and, once you withdraw, you lose all tax benefits on the money removed.

Although transferring is a relatively straightforward process, it is important to remember that any investment – particularly in shares – is likely to be for the long term. Consequently, you need to be sure your existing investment is really not right for you, rather than switching just because of a short-term downturn in markets.

Before shifting your portfolio, remember any transfer will incur charges that will need to be weighed up against the potential benefits, so do make sure you seek expert advice first.

Jonathan

About the Author

Jon is a highly qualified and experienced Chartered Financial Planner and Certified Financial Planner with over 27 years’ experience. He loves working with clients who are passionate about getting the most out of life and feels his job is to support them living life to the fullest. Read more from Jonathan...
This article is distributed for educational purposes and should not be considered investment advice or an offer of any product for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that the stated results will be replicated.
Jonathan - I would like to say how much TB and I appreciated the time we spent with you yesterday. It was helpful, constructive and informative. You have a very real talent to summarise and deliver complex messages in a meaningful empathetic way. We very much look forward to taking the next steps. MB & TB (Oxfordshire)

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