ISA transfer

When you transfer an ISA to AJ Bell, we’ll do the hard work for you. Here’s what you need to know about ISA transfers before you get started.

Can I transfer my ISA to another ISA?

Yes, you can transfer cash ISAs and Stocks and shares ISAs you hold to an AJ Bell ISA. We also accept transfers from matured child trust funds.

If you’re transferring a cash ISA, just keep the below in mind:

• A Stocks and shares ISA is designed for investing in shares and funds. Investments can generate higher return than cash in the long term, but they could also fall in value – meaning you could get back less than you invest
• If you have a fixed-rate cash ISA, you might have to pay a penalty if you transfer it before the end of the term.

If you’re transferring from another Stocks and shares ISA, you can choose to keep your investments during the transfer process – rather than selling them first. This is known as an ‘in specie’ ISA transfer.

Transferring cash only is likely to be quicker, but selling your investments first means you’ll be out of the market while the ISA transfer takes place.

Does transferring an ISA use your allowance?

No, making an ISA transfer from one provider to another doesn’t use up any of your £20,000 ISA allowance for the current tax year.

Just be careful when transferring a cash ISA or cash from a Stocks and shares ISA into a Lifetime ISA. Doing this won’t use up your ISA allowance for the current tax year, but it will count towards your annual Lifetime ISA subscription limit of £4,000.

What are the ISA transfer rules?

All providers must allow their customers to make an ISA transfer to another provider, if they want to.

ISA transfer rules are simple if you’re transferring your ISA in full, but get more complicated if you're making a partial transfer. Basically, you can partially transfer cash (and any investments you made with it) paid in during previous tax years, and partially transfer cash (and any investments you made with it) paid in during the current tax year, but each ISA provider can allow or accept transfers of these at their own discretion. For example, AJ Bell is currently only able to accept partial transfers of cash paid in during previous tax years, and can only accept cash paid in during the current tax year in full.

It’s a tricky one to understand, so let’s take an example. If you’ve paid in £10,000 this tax year and the value of investments you’ve bought with it has risen to £12,000, to transfer this to AJ Bell, you’d need to transfer the full £12,000. But if you've paid in £15,000 in previous tax years, you can partially transfer it to our ISA – however large or small the investments you've bought with it have grown.

Does transferring an ISA count as opening a new one?

Transferring an ISA doesn’t count towards your ISA allowance for a year, but your new provider might need you to open an account to start your ISA transfer.

To transfer an ISA to AJ Bell, you'll need to open an ISA with us if you don't have one already. This takes less than 10 minutes, and you can do it online. While opening your ISA, you'll be able to enter the details of the ISA you want to transfer, and choose whether you want to make an in specie ISA transfer, or transfer in cash.

Because of ISA transfer rules, it’s important that you don’t make your transfer manually. If you withdraw money from an ISA to your bank account, it loses its tax-free ISA status. And when you come to pay them back into your ISA, you’ll need to have sufficient ISA allowance left over.

Can I transfer an ISA online?

Yes, you can. If you already have an AJ Bell ISA, you can make a transfer by logging in to your account and clicking ‘Transfers’ from the ‘My account’ menu. You’ll be able to track the progress of your transfer online.

If you'd like to transfer a matured Child Trust Fund, you'll also need to complete our Child Trust Fund to Stocks and shares ISA transfer form.

How long does an ISA transfer take?

Timescales depend on:

• The type of investments you’re transferring
• How quickly your current provider responds to our requests
• Whether you have to pay fees to your current provider, including closure and administration fees

If you’re transferring cash and investments, your cash will transfer to us after your investments.

To give you an idea, here’s a guide to typical ISA transfer times by investment type:

Transferring a Lifetime ISA?

If you want to transfer a Lifetime ISA to another provider, take a look at our Lifetime ISA transfer page to learn more.

Transferring to us

We do the heavy lifting when you move your portfolio to us.

More on transfers

Open an ISA

An AJ Bell Stocks and shares ISA is an easy, efficient way to invest. It’s completely tax free, so more of what you make stays in your pocket.

More on ISAs Open an ISA