You can move ISA money to another provider, or to a different type of ISA, at any time without losing its tax-free status and without using any of your £20,000 annual allowance. The transfer must go directly between providers, started by an application to the new one. If you withdraw the money yourself and pay it back in, it counts as a new subscription. Cash ISA to cash ISA transfers should take no more than 15 business days, and other transfers no more than 30 calendar days. The main exceptions are Lifetime ISAs, Junior ISAs and, from 6 April 2027, moves from stocks and shares into cash for anyone under 65.
The basic rule: never withdraw to switch
Regulation 21 of the ISA Regulations 1998 requires every transfer to be made "directly between one account manager … and another account manager". HMRC's guidance for providers says that if the old provider pays the money to you instead, it is treated as a withdrawal and loses its tax-free wrapper.
Example: Priya has £45,000 in a cash ISA built up over several years and wants a better rate elsewhere. If she closes the account and deposits the £45,000 with the new bank, only £20,000 can go back into an ISA this year, and £25,000 of tax-free savings is permanently lost. If she applies to the new bank for an ISA transfer, all £45,000 moves across, keeps its ISA status and uses none of her allowance.
What you can transfer
- Whole or part. Both the current year's subscriptions and earlier years' subscriptions can be transferred in whole or in part. Since 6 April 2024 this includes partial transfers of money paid in during the current tax year;
- Any direction between the main types. HMRC's guidance confirms that subscriptions can move freely between cash, stocks and shares and innovative finance ISAs;
- Investments or cash. Depending on both providers' terms, holdings can be re-registered with the new provider ("in specie") or sold and moved as cash. Ask before you start, because the two routes carry different costs and time out of the market;
- Innovative finance ISAs. Cash in an innovative finance ISA can be transferred, but the transfer rights for loans and other non-cash investments depend on the account's terms;
- From abroad. You can still transfer an ISA after you stop being UK resident.
Providers do not have to accept transfers in, and they may charge exit fees. Fixed-term and notice cash ISAs may also apply an interest penalty if you leave early. HMRC's guidance lets the old provider agree to a revised instruction so the transfer happens after the term ends.
Transfer timescales
| Transfer | Expected maximum |
|---|---|
| Cash ISA to cash ISA | 15 business days from receipt of the instruction by the new provider |
| Other transfers (for example stocks and shares, or cash to stocks and shares) | 30 calendar days |
| Non-cash investments in an innovative finance ISA | Ask the provider |
The 15-day cash timetable breaks down as 5 business days for the new provider to forward the request, 5 for the old provider to send the funds and transfer history, 3 for the new provider to credit the account, and 2 for post. If a transfer runs late, complain to the provider first and then to the Financial Ombudsman Service.
Lifetime ISAs and Junior ISAs
- Lifetime ISA to Lifetime ISA. No charge. The government bonus moves with the subscriptions;
- Lifetime ISA to any other ISA, before age 60. This is treated as a withdrawal and suffers the 25% withdrawal charge, which removes the bonus and part of your own money;
- Other ISAs into a Lifetime ISA. Allowed, but only up to the £4,000 annual Lifetime ISA limit. The amount transferred counts towards that limit and may attract the bonus;
- Help to Buy ISA. Money can move from a Help to Buy ISA to a Lifetime ISA. Moving from a Lifetime ISA to a Help to Buy ISA triggers the 25% charge;
- Junior ISAs. Transfers are possible only between the child's own Junior ISAs, or between a Child Trust Fund and a Junior ISA. Junior ISA money cannot be moved to an adult ISA, although the account becomes an adult ISA automatically at 18.
Flexible ISAs: a trap when switching
If you have withdrawn cash from a flexible ISA intending to put it back, replace it before transferring. Regulation 5DDB(6) ends your right to replace a withdrawal made from an account before it was transferred. The only exception is a bulk transfer arranged by the provider. If you transfer first, the chance to put that money back without using fresh allowance is lost.
The April 2027 change: stocks and shares to cash
The Individual Savings Account (Amendment) (No. 2) Regulations 2026 come into force on 6 April 2027, alongside a new £12,000 annual cash ISA limit for anyone aged 64 or under at the end of the tax year. To stop people getting round that limit, they rewrite the transfer rules:
- Cash ISAs can still be transferred to any type of ISA;
- Stocks and shares and innovative finance ISAs can be transferred to another stocks and shares, innovative finance or Lifetime ISA, but to a cash ISA only if you are 65 or over at the end of the tax year.
For an under-65 investor who plans to move investments into cash, for example to reduce risk ahead of a house purchase, 2026/27 is the last tax year in which a stocks and shares to cash ISA transfer is permitted. From 2027/28 the alternative is to sell and hold cash within the stocks and shares ISA. Interest on that cash is tax-free in 2026/27, but from 2027/28 the provider must pay a flat-rate charge on it at the savings basic rate, which section 5 of the Finance Act 2026 sets at 22% for 2027/28. Until 5 April 2027 the current rules apply: any ISA type can still be transferred to any other, subject to the Lifetime and Junior ISA rules above.
A transfer checklist
- Check the exit terms. Look for exit fees, fixed-term penalties and any maturity date;
- Replace any flexible withdrawals first;
- Apply through the new provider and complete its transfer form. Do not close the old account yourself;
- Choose in specie or cash, and say whether you are moving the whole account or part of it;
- Keep the dates so you can chase a transfer that takes longer than 15 business days or 30 calendar days;
- Before April 2027, if you are under 65, decide whether any stocks and shares money needs to move to cash.
Primary sources: regulation 21 and regulation 5DDB of the ISA Regulations 1998; SI 2026/1018; HMRC's transferring your ISA page and its guidance for ISA managers. See also our guides to the ISA allowance and how ISAs work.
If you are restructuring larger ISA and taxable portfolios ahead of the 2027 changes, Acumon's private client tax team can review the options with you.