How to transfer an ISA without losing its tax-free status

If you have money in an ISA earning a poor rate, or held on an investment platform with fees that no longer suit you, you don't have to leave it there. You can move your ISA to another provider and keep its tax-free status, provided you follow the proper transfer process.

This guide explains how ISA transfers work, the main mistake to avoid, and what to check before you make the switch.

Why transfer an ISA at all?

People usually move an ISA for one of a few reasons:

• A better interest rate. Cash ISA rates vary between providers, and older accounts are often left on uncompetitive rates.
• Lower charges. Stocks and shares ISA platforms charge in different ways, such as percentage-based fees, flat fees or dealing charges. The right structure depends on how much you hold and how often you trade.
• A wider choice of investments. Some platforms offer only a limited range of funds, whilst others give access to shares, investment trusts and exchange-traded funds.
• Simplicity. Many people build up several ISAs over the years and want to combine them into one or two accounts.
• Changing strategy. You might want to move cash savings into investments, or the other way round. Note that from 6 April 2027, savers under 65 will no longer be able to transfer from a stocks and shares ISA into a cash ISA (see below).

The golden rule: don't withdraw the money yourself

The most important point is this. If you want to keep the tax-free wrapper, you must use the official ISA transfer process. Do not withdraw the money and pay it into a new ISA yourself.

If you take money out of an ISA, it generally loses its ISA status. If you then pay it into a new ISA, it counts as a fresh subscription and uses up part of your annual allowance. The ISA allowance is £20,000 for the 2026/27 tax year, so money saved in previous years could not all be sheltered again in one go.

Some ISAs are "flexible", which means you can withdraw money and replace it within the same tax year without it counting towards your allowance. This only applies to replacing money in the same flexible ISA. It is not a way to move money between providers. Not all ISAs are flexible, so check your terms before relying on this.

A transfer moves your money directly from one provider to another. Your savings and investments stay protected throughout, and a transfer does not count towards your annual allowance.

How the process works

Transferring an ISA is usually straightforward:

1. Choose your new provider and ISA. Make sure the new account accepts transfers in, as not all do. This is particularly common with some fixed-rate cash ISAs and certain promotional accounts.
2. Contact the new provider, not the old one. You normally start the transfer through your new provider, often by filling in an online form. You'll need details of your existing ISA.
3. The providers deal with it between themselves. The new provider asks the old one to transfer the money or investments.
4. Check it has arrived. Once the transfer is complete, make sure the full amount has arrived and that your old account is closed if you've moved everything.

Under HMRC's rules, providers are expected to complete transfers within set timescales. These are generally 15 working days for a transfer between cash ISAs and up to 30 calendar days for other types. Delays do happen, so if a transfer is taking much longer, raise it with both providers. If the problem isn't resolved, you can complain, and ultimately take the matter to the Financial Ombudsman Service.

Moving this year's money versus previous years'

ISA rules distinguish between money you've paid in during the current tax year and money from previous tax years.

• Previous years' subscriptions can usually be transferred in whole or in part, so you could move some of an old ISA and leave the rest.
• Current-year subscriptions used to have to be transferred in full. Rule changes from April 2024 allow partial transfers of current-year money too, but providers don't have to offer this. Check with both of yours.

Also from April 2024, you can pay into more than one ISA of the same type in a single tax year, as long as your total stays within the overall allowance. The exception is the Lifetime ISA: you can pay into only one Lifetime ISA per tax year. Check gov.uk for the current rules, as ISA regulations are reviewed from time to time.

Cash ISA transfers: things to check

Before moving a cash ISA, look at:

• Fixed-rate penalties. If your money is in a fixed-term cash ISA, leaving early often means losing some interest. Work out whether a better rate elsewhere would make up for it.
• Notice periods. Some notice accounts require you to give notice before money can leave, or charge an interest penalty instead.
• Whether rates are variable. An eye-catching headline rate may include a temporary bonus that falls away after a set period.
• The April 2027 changes. From 6 April 2027, savers under 65 will be able to pay no more than £12,000 a year into cash ISAs, within the overall £20,000 allowance. To stop people getting around this limit, under-65s will also no longer be able to transfer money from a stocks and shares ISA or an Innovative Finance ISA into a cash ISA. Transfers from a cash ISA into a stocks and shares ISA will still be allowed, and transfers between cash ISAs are not affected. If you are under 65 and planning to move investment ISA money into cash, it must be done before 6 April 2027. For more on the cash ISA rules, see our guide to how the Cash ISA allowance works in the UK.

Stocks and shares ISA transfers: things to check

Investment ISAs have a few extra considerations.

Cash transfer or in-specie transfer?

• A cash transfer means your investments are sold, the money is moved, and you reinvest with the new provider. Your money may be out of the market for days or weeks. If markets rise during that time, you miss out, and if they fall, you avoid the drop. Nobody can predict which will happen.
• An in-specie (or "re-registration") transfer moves the investments themselves without selling them. This keeps you invested throughout, but only works if your new provider offers the same funds or shares. Fund share classes can sometimes be converted along the way.

Fees

Some providers charge exit fees or per-holding transfer charges, although many have dropped them. Some new providers offer to cover exit fees, often up to a limit and subject to conditions. Read the small print on both sides.

Lifetime ISAs and Junior ISAs

Special rules apply here:

• Lifetime ISAs can usually be transferred to another Lifetime ISA provider without penalty. However, moving money from a Lifetime ISA into a different type of ISA is generally treated as an unauthorised withdrawal and may trigger the government withdrawal charge. This charge can mean getting back less than you paid in. The government plans to replace the Lifetime ISA with a new First Time Buyer ISA, expected from April 2028. Under the current proposals, existing Lifetime ISAs can carry on as they are, but money in them cannot be transferred into the new account.
• Junior ISAs can be transferred to another Junior ISA provider. The money belongs to the child and becomes an adult ISA when they turn 18.

For more on how each type of ISA works, see our complete guide to the different types of ISA.

A quick checklist before you transfer

• Compare the rate or total charges you'll pay, not just headline figures.
• Confirm the new ISA accepts transfers in.
• Check for exit fees, fixed-term penalties and notice periods.
• Decide between a cash or in-specie transfer for investments.
• If you're under 65 and want to move investment ISA money into a cash ISA, do it before 6 April 2027.
• Start the transfer through the new provider and never withdraw the money yourself.
• Keep records and check the money arrives in full.

Where to find more help

For the official rules, including the current ISA allowance, see gov.uk. MoneyHelper (moneyhelper.org.uk) offers free, impartial guidance on savings and investments. You can check whether a provider is authorised on the FCA register at fca.org.uk.

This article reflects the rules as at 17 October 2026. It is general information only and is not personal financial advice. If you're unsure whether transferring is right for your circumstances, consider speaking to a regulated financial adviser.