How do you transfer ISA savings and investments?

Transferring an ISA is a valuable flexibility. Whether you're chasing better interest rates, consolidating accounts, or switching from saving to investing (or vice versa), understanding how to transfer your ISA can help you make the most of your tax-free savings and investments. 

Here's how to transfer your ISA, why it matters, and what to watch out for.

How to transfer an ISA

Transferring an ISA is a straightforward process. To transfer ISA savings, you must:

• Request an ISA transfer from the new provider – this is essential to protect your ISA’s tax-free status. At Charles Stanley Direct, the form can be found on the transfers section of the website, which is located under the ‘my holdings’ option within your account.
• Specify if you want a partial or full transfer of your ISA. The rules permit a transfer of any amount from a standard Cash or Stocks & Shares ISA regardless of when you added the money, but restrictions apply to Junior ISAs and Lifetime ISAs.
• Choose to transfer as cash or stock. If you’re transferring a Stocks & Shares ISA, it’s possible to transfer ‘in specie’ as stock or as cash. If you select to transfer as cash, your investments will be sold with your current provider. The proceeds will then be sent to your new provider.
• Submit the completed form – your new provider will handle the rest.

Never withdraw money yourself to move it between ISAs. Doing so removes it from the ISA wrapper and a reinvestment counts as a new subscription (unless it’s a flexible ISA), affecting your ISA allowance for that tax year. To preserve the tax-free status of your savings and investments, always follow the formal ISA transfer process. 

In addition, you should always check provider terms such as any exit fees before making any switch.

ISA transfer rules

The ISA transfer rules are designed to protect your savings and provide flexibility:

• You can transfer any type of ISA – Cash ISA, Stocks and Shares ISA, Lifetime ISA, Junior ISA, or Innovative Finance ISA – to another provider.
• Transfers can be made between the different types of ISA other than the Lifetime ISA and Junior ISAs where special rules apply.
• You can transfer ISAs from current and previous tax years and not affect your annual ISA allowance.
• Partial transfers are allowed in the rules, but check the terms and conditions of your current provider.
• How long does it take to transfer an ISA?  Typically, transfers should take 15 working days for Cash ISAs and up to 40 for ‘in specie’ transfers that involve moving shares and funds – but often it’s far less. 

Does transferring an ISA count as opening a new one?

No, transferring an ISA doesn’t count as opening a new ISA. Even if you open a new account to facilitate the transfer, it doesn’t impact your ability to contribute to other ISAs within the same tax year.

Can you transfer a Cash ISA to a Stocks and Shares ISA?

Yes, you can transfer a Cash ISA to a Stocks and Shares ISA without losing your tax-free status. This is a popular move for savers looking to pursue long-term growth through investments. The process involves:

• Opening a Stocks & Shares ISA.
• Completing a transfer request form.
• Waiting for the provider to complete the transfer for you – typically within a couple of weeks.

This flexibility allows you to repurpose short-term savings into longer-term investments, such as for retirement which are better at growing your money ahead of inflation and building long term wealth.

You can also transfer Stocks & Shares ISAs to Cash ISAs with banks or building societies under current rules. This may be useful for individuals whose objectives have become shorter term and where the risk of investments is no longer appropriate. Although it’s also worth noting there are low risk options available in a Stocks & Shares ISA such as  Money Market Funds.

Can you transfer shares into an ISA without selling investments?

Not directly. HMRC rules require that all ISA contributions be made in cash, so you cannot simply move shares into an ISA. However, you can use a process called a ‘Bed and ISA’ which works as follows:

• Sell your shares in a General Investment Account.
• Use the proceeds to buy the same shares within your ISA.
• Shelter future gains from income tax and capital gains tax (CGT).

It’s very important to note this process may trigger CGT if your profits exceed the annual allowance (£3,000 for the 2025/26 tax year).

ISA transfer offers with Charles Stanley Direct

You could be eligible for up to £1,500 cashback if you transfer your cash and/or investments held with another provider to the Charles Stanley Direct online investing platform.