Under the old ISA rules, you had to be careful about how many accounts you opened in a tax year. So, it’s understandable that you might be concerned about whether the transfer process would be classified as opening a new account.
Good news though: as of April 2024, these rules changed — and you can now open as many ISAs with as different providers as you want. The only exception to this rule being Lifetime ISAs and Junior ISAs, as they’re limited per person, with age and maximum deposit restrictions.
Now, you just need to keep your saving and/or investing within your £20,000 allowance during the tax year, spread across all the ISAs you have. And it’s your responsibility to keep on top of this.
So, does transferring an ISA count as opening a new one?
No. If you’re transferring it to a new provider, you may have a ‘new account’ open in the literal sense. But by using an official transfer process, your money is simply being moved over to a different ISA, with your current provider and new provider doing the work on your behalf.
If you’re opening a new account in the process and are concerned about this, you can feel reassured that the rules have relaxed. As a result, opening multiple ISAs during the same year doesn’t matter as much anymore. 
Does an ISA transfer count towards allowance?
With ISAs, you get up to £20,000 a year to save and/or invest. Typically, if you were to withdraw any money from your ISA, you’d effectively ‘spend’ that amount of your £20,000 for the remainder of the year and lose the tax-free benefits it would have offered.
Although there’s a workaround for this by using a ‘flexible’ ISA, where you could replace the money by the end of the current tax year; April 5th.
For most people though, it could be a concern to lose their ISA allowance, so it’s sensible to ask whether a transfer counts towards using it up.
After all, you could have built your ISA up to a substantial pot size, knowing you want to transfer it to a better-suited ISA provider, but still have plans to use your ISA allowance for the remainder of this tax year.
Thankfully, an ISA transfer that’s processed by the provider on your behalf does not ‘use up’ your ISA allowance. You’ll get to keep the remaining amount you’re entitled to.
Be cautious though; withdrawing it yourself and manually moving it to a new provider would affect your ISA allowance!
Which ISAs can I transfer?
As there are four different types of ISAs for adults, you may be wondering if there are restrictions on their ability to transfer. And you’d be right — not all transfers are like-for-like.
It does vary from provider to provider, but as an example, here’s Wealthify’s laid out for you to see clearly:
We’re not including Junior ISAs here as they are for children, but you are able to transfer to our Junior Stocks and Shares ISA on behalf of your child. You can’t transfer a Junior ISA to an adult ISA unless it is the child themselves turning 18 and the account ‘maturing’.
Rules for transferring ISAs
Use the new provider’s transfer process
First and foremost, it’s important to use the official transfer process of your newly chosen provider. It’s usually a form they’ll ask you to complete.
This gives them permission to speak to your existing provider and initiate the transfer on your behalf. Without using their form, you may lose your ISAs tax-efficient benefits.
Don’t close your ISA/manually withdraw if you intend to transfer the money
If you manually withdraw the money and deposit it into a new ISA instead, this will mean you ‘spend’ that amount of your current £20,000 allowance.
So, if you want to keep your tax-free ISA benefits and remaining allowance, use the new provider’s official transfer form and let them manage the transfer for you.
Note: Some ISAs will be closed after the transfer is complete. But in any case, as the ISA rules have relaxed, you don’t have to worry about having multiple open in the same tax year anymore.
If it is a restricted account, like a Lifetime ISA, you should follow the transfer process to keep your government bonus as well as the ISA’s tax-free benefits. Those accounts are restricted to one per person; so, if you’re transferring into a different provider’s Lifetime ISA, the existing one should be closed by the existing provider when the transfer is complete anyway.
Junior ISAs also have restrictions on how many you can have open for your child. Learn more about these in our blog:
Transferring part of your money
Partial transfers are possible if it’s the money you’ve deposited in a previous tax year (before last April 6th).
And, for money you’ve deposited during the current tax year, you’ll just need to check with the new ISA provider. This is usually down to their own policy; they may ask you to transfer the whole amount you’ve deposited in 2025/26.
Don’t forget to consider any exit fees that the current provider may charge.
Transferring different ISA types into one account
If you’re having a shakeup of your finances and have decided to merge the money from your various ISA types into one new account, this is usually possible as long as the new provider accepts them.
For example, you could initiate a transfer request for your Cash ISA and Innovative Finance ISA funds (transferred over as cash) to move over to a Wealthify Stocks and Shares ISA (particularly useful if your goal is to combine your money into one place).
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
How do I transfer an ISA to another provider?
It’s pretty simple, but each provider may do things slightly differently. So, we’ll take you through Wealthify’s steps as an example:
1. Research the details
Take your time to find the provider that’s right for you. Our T&Cs, investment styles for Stocks and Shares ISA, interest rate for our Cash ISAs, flexibility and fees are always as transparent as possible.
2. Exit fees
Wealthify does not charge you to transfer in or out. However, your current ISA provider may charge a fee to leave their service, so double check with them.
3. Use the official transfer process
Whether you’re interested in our Cash ISA for savings, or Stocks and Shares ISA transfer for investing, remember to follow our instructions to initiate a transfer. We’re happy to take charge of the legwork once we have your details and permission to do so.
Timings do vary, mostly based on what type of ISA you currently have and whether the assets are held in cash.
Cash ISA transfers usually take 15 business days. Whereas a Stocks and Shares ISA transfer can take 30 calendar days, as your investments need to be sold and transferred over as cash, first.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Resources:
https://www.moneyhelper.org.uk/en/blog/savings/understanding-the-new-ISA-rules
https://www.gov.uk/individual-savings-accounts/transferring-your-isa
