How Do You Transfer an ISA Without Losing Tax-Free Status?

In the 2026-27 tax year, gov.uk says you can transfer all or part of your ISA savings to another provider, whether the money was paid in this year or in previous years. If you withdraw the money instead of using the transfer process, gov.uk says you will not be able to reinvest that part of your tax-free allowance again. gov.uk gives 15 working days for transfers between cash ISAs and 30 calendar days for other types of transfer.

The site's rules data was last checked against gov.uk on 26 September 2026. Figures typed in this guide may not yet reflect a later change, and the descriptions of gov.uk pages are summaries that may also lag. The current figures are on the ISA rules at a glance page. General information only, not financial advice.

Why do people transfer an ISA?

There are several reasons people move an ISA from one provider to another.

One reason is a different interest rate. A Cash ISA opened a few years ago may now pay less than it did, particularly if the original rate was promotional and has ended. A higher rate elsewhere is not guaranteed to last. The guide to how interest rates affect Cash ISAs explains why rates on older accounts can fall behind.

Other reasons people give include:

• Bringing several ISAs held with different providers into one place
• Moving from a Cash ISA to a Stocks and Shares ISA, or the other way round
• Finding a provider with lower fees, different investment options or a different platform
• Moving into a Lifetime ISA, which has its own rules and a 25% government bonus (see the Lifetime ISA section below)

How does an ISA transfer work?

The GOV.UK page on transferring your ISA says you can transfer all or part of the savings in your ISA, and that the transfer can be to a different type of ISA or the same type. It also says that if you withdraw the money without using the transfer process, you will not be able to reinvest that part of your tax-free allowance again.

The page does not set out the steps in detail. In practice, the new provider normally handles the request with the existing provider, so the usual first step is to ask the provider you want to move to how its transfer works. Some providers may accept only full transfers or may not accept transfers in at all, so that is worth confirming before applying. For the transfer time limits and the other current ISA rules in one place, see ISA rules at a glance.

Can this year's money and earlier years' money both be transferred?

gov.uk says the investment can have been made this year or in previous years. Partial transfers are covered by the same page. The page read does not say how a transfer is counted against the current year's allowance, so that is a question for both providers.

How long does an ISA transfer take?

The GOV.UK transfer page gives these timescales:

• 15 working days for transfers between cash ISAs
• 30 calendar days for other types of transfer
• For investments held in an Innovative Finance ISA, it says to ask the provider how long it will take

What is different when transferring a Cash ISA?

A Cash ISA to Cash ISA transfer is the simplest case. The new provider needs to accept transfers in, and the existing account's terms matter. Fixed-rate Cash ISAs may charge for early access if the money is moved before the fixed term ends, and gov.uk says to check the terms of your ISA for any rules or charges on withdrawals (GOV.UK: withdrawing your money). The fixed-rate ISA switch calculator compares staying in a fix with paying a penalty to move, and the Cash ISA calculator shows how growth differs at two rates.

What is different when transferring a Stocks and Shares ISA?

A Stocks and Shares ISA transfer involves investments rather than just a cash balance. Providers commonly describe two routes, although the gov.uk transfer page read does not describe either:

• Transfer in cash: the investments are sold, the cash moves, and it is reinvested at the new provider. The money can be out of the market during the transfer.
• Transfer in specie: investments move without being sold. Not every provider offers this, and it depends on both providers holding the same assets.

Exit charges at the current provider and differences in fund choice at the new one are points to compare. The Stocks and Shares ISA calculator can compare scenarios. Moving shares held outside an ISA into one is a different process, covered in bed and ISA explained.

A worked example: the same balance at two interest rates

This example uses assumed rates, which are not forecasts and not quotes from any product. Sarah has £18,000 in a Cash ISA earning an assumed 1.8% AER. Another provider, which accepts transfers in, offers an assumed 4.6% AER.

• At 1.8% AER over one year: £18,000 × 1.8% = £324 in interest.
• At 4.6% AER over one year: £18,000 × 4.6% = £828 in interest.

The difference is £504 in a single year in this example. Over several years with compounding the gap would be larger. If the transfer completes inside the gov.uk timescale for cash ISAs, the new rate applies from then, and the money keeps its ISA status because it moved by the transfer process rather than by withdrawal. A higher rate may be promotional or variable, so the figure is an illustration only.

What does an ISA transfer not do?

• It does not guarantee a better return. Savings rates can change and investment performance is never guaranteed. A rate may be promotional and drop after a set period.
• It does not protect against market losses. In a Stocks and Shares ISA, capital is at risk and past performance does not predict future results.
• It does not automatically change the annual limit. The overall ISA allowance is £20,000 in 2026-27 (GOV.UK: Individual Savings Accounts). The pages read do not say how a transfer is counted against it, so ask both providers.
• It does not always close the old account. After a partial transfer the old account may stay open with a smaller balance. The provider can say how it handles this.

Can a Lifetime ISA be transferred?

The GOV.UK Lifetime ISA guide says you will pay a 25% charge if you withdraw money or transfer the Lifetime ISA to another type of ISA before 60. The guide read does not say whether moving a Lifetime ISA to another Lifetime ISA provider carries a charge, so that is a question for both providers. gov.uk also says there are restrictions on the transfers you can make if you have a Lifetime ISA or a Junior ISA.

Withdrawals from a Lifetime ISA that do not meet the allowed reasons carry the 25% charge. The Lifetime ISA calculator shows how the bonus and charge affect a balance.

What mistakes are common when transferring an ISA?

• Withdrawing the money instead of using the transfer process, after which gov.uk says that part of the tax-free allowance cannot be reinvested
• Not checking for exit penalties on fixed-rate or notice accounts
• Not confirming that the new provider accepts transfers in
• Assuming the process is instant, when gov.uk gives up to 30 calendar days for some transfers
• Not asking how a part-way-through-the-year transfer is counted against the current year's allowance

Questions to ask a provider before an ISA transfer

1. Purpose: Is the reason rate, fees, a different ISA type or consolidation? This decides which terms matter.
2. Existing account: Are there fixed-term end dates, notice periods or exit charges?
3. New provider: Does it accept transfers in, full or partial, and are there conditions on its rates?
4. Illustrations: A calculator can show the difference between two sets of figures, but results are illustrations, not forecasts. The Advanced ISA Planner models multi-year scenarios.
5. The request: Who sends it, and does the old account need closing separately?
6. Timescale: What date should the transfer complete by, and who is contacted if it is late?
7. Afterwards: Does the balance match, and is the money still held in an ISA?

Frequently asked questions

How long does an ISA transfer take?

gov.uk gives 15 working days for transfers between cash ISAs and 30 calendar days for other types of transfer. For Innovative Finance ISA investments it says to ask the provider.

Can I transfer only part of my ISA to another provider?

gov.uk says you can transfer all or part of the savings in your ISA. Some providers may not accept partial transfers in, so it is worth checking before applying.

What happens if I withdraw my ISA money instead of transferring it?

gov.uk says that if you withdraw the money without using the transfer process, you will not be able to reinvest that part of your tax-free allowance again. A flexible ISA works differently for money taken out and put back in the same tax year.

Can I transfer a Lifetime ISA?

gov.uk says a 25% charge applies if you transfer a Lifetime ISA to another type of ISA before 60. The page read does not describe moving to another Lifetime ISA provider, so ask both providers.

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This guide does not constitute financial advice. Your personal situation, tax position, and savings goals may mean different strategies are appropriate. Consider speaking to a regulated financial adviser if you are uncertain.