Moving your savings or investments between providers doesn't have to mean losing the benefits that come with an ISA (Individual Savings Account). By choosing to transfer an ISA using the correct process, you can move your money while keeping its tax-efficient status under current rules. Tax treatment depends on individual circumstances and may change.
In this guide, we explain how an ISA transfer works, the steps involved, the different types of transfers available, and the rules you need to be aware of. We’ll also explain common transfer scenarios, potential restrictions, and why using the official ISA transfer process is important for protecting your ISA benefits.
This information is for general guidance only and does not constitute personal financial advice. Whether an ISA is suitable depends on your individual circumstances. Tax treatment depends on individual circumstances and tax rules may be subject to change in the future.
What is an ISA transfer?
An ISA, or Individual Savings Account, can be a tax-efficient way to save or invest money. The annual ISA allowance is currently £20,000 for the 2026/27 tax year, meaning you can add up to £20,000 to an ISA and any interest, income, or growth earned will be protected from UK income tax and capital gains tax under current rules. Tax treatment depends on individual circumstances and may change.
An ISA transfer is the process of moving money held in an ISA from one ISA account to another while preserving its tax-efficient status. Completing an ISA transfer allows people to move their savings or investments to an ISA that may better suit their circumstances, while keeping the existing tax benefits associated with the account.
There are several types of ISA available. A Cash ISA holds cash savings and pays interest, while a Stocks and Shares ISA (also known as Investment ISAs) allows people to invest in asset funds, shares, and bonds.
You can transfer between the same type of ISA (i.e. moving your existing Stocks and Shares ISA to a new provider) or between different ISA types (i.e. transferring from a Cash ISA to a Stocks and Shares ISA). You cannot transfer ISAs to another individual.
Scottish Friendly specialises in providing Stocks & Shares ISAs.
Scottish Friendly does not offer Cash ISAs, but you can transfer a Cash ISA to us.
Transfer an ISA to Scottish Friendly
Why would someone want to transfer their Individual Savings Account?
There are lots of reasons why people might choose to transfer an ISA. In some cases, they may want to move away from their current ISA provider to a provider, or an account, that better suits their circumstances or financial goals. ISA transfers can also make it possible to switch between different types of ISA where the rules allow, although there are restrictions.
Someone with a fixed rate Cash ISA, for example, may decide to move their money when their fixed term ends and they no longer face charges for withdrawal. In some circumstances, transferring may lead to better interest rates, although rates and returns can change over time and are not guaranteed.
Similarly, some people may transfer ISAs to access a broader variety of investment options, like moving from a Cash ISA to a Stocks and Shares ISA where their money is invested in the stock market. How suitable any option is will depend on their individual circumstances and attitude to risk.
How does the ISA transfer process work?
The exact process for transferring an ISA will vary between providers, and there may also be specific rules depending on ISA type and provider. However, most ISA transfers follow a similar process. Before making any decisions, it’s important to research both your existing provider and the provider you’re considering moving to, as requirements, restrictions, and timescales can differ.
1. Scope out a new provider
The first step is usually to research a new ISA provider and the accounts they offer. People may compare features, charges, investment options, interest rates, or account functionality, depending on the type of ISA they want to transfer into. How suitable a particular ISA is will depend on individual circumstances.
You can transfer between the same type of ISA or from one type of ISA to a different type, although some ISA types have additional rules and restrictions.
2. Check the terms and conditions of your existing ISA
Before starting a transfer, it’s important to check the terms and conditions of your current account. In some cases, your current provider may charge fees for transferring ISAs.
This can be particularly relevant if you hold a fixed term Cash ISA (fixed rate Cash ISA) for example. Some providers may impose restrictions or charges if you transfer before the fixed term ends (also known as the maturity date), so understanding the terms of your account before proceeding can be helpful.
3. Contact the new provider about a transfer
Once you’ve chosen a new account, the next step is usually to contact the provider you're looking to switch to and let them know you wish to transfer an ISA. The provider will explain the transfer options available and outline the information needed to begin the process.
4. Complete the ISA transfer form (Paper form or online)
The new provider will normally ask you to complete an ISA transfer form, either as a Paper form or online application.
The ISA transfer form will typically ask you to include your personal information, information about your existing account, and authorise the new provider to arrange the transfer on your behalf. Depending on the provider, you may be able to manage the process through your account online.
Once the completed ISA transfer form has been submitted, the transfer process can begin.
5. Await notification that your new account is active
Once you submit the ISA transfer form, the new provider will take over the transfer process. This typically involves a review of the form details and, once that review has been completed, the process of moving the savings or investments from your current ISA account to your new ISA account.
After the transfer has been processed, you will usually receive confirmation that your new ISA account is active and that the transfer has been completed. This can take up to 15 days for Cash ISAs, and up to 30 days for other ISA types, although it can take longer than this, particularly in cases where providers require a wet signature.
Your new provider will normally contact you once the transfer is finished and your ISA is ready to manage.
ISA transfer rules to be aware of
While ISA transfers are generally straightforward, there are sometimes restrictions on the types of ISAs you can transfer to, or the amounts you can transfer. The transfer rules can vary depending on the ISA type, the provider involved, and whether the money was contributed during the current or a previous tax year. Before proceeding, it’s important to check the transfer rules that apply to your specific account.
Using the official ISA transfer process
You need to use the official transfer process for your ISA to retain tax benefits.
You should not withdraw money yourself if you want the savings or investments within the ISA to retain tax-free status - tax-free means free from UK income tax and capital gains tax under current rules. Tax treatment depends on individual circumstances and may change.
If you withdraw the money and then pay it into another ISA yourself, you can lose ISA protection and may use up some of your ISA allowance again. In contrast, using an official ISA transfer keeps your savings tax-free within current rules.
Not all providers accept transfers in
ISA providers are required by the UK government to allow transfers out - customers choosing to transfer their ISA to another provider or ISA. However, not all providers accept transfers in, meaning they don't have to accept money being transferred to them from another ISA provider or ISA type.
Some accounts are only available for new subscriptions, while others may have restrictions on the ISA types they will accept. Because transfer policies vary between different providers, it's important to check the provider's transfer rules before opening a new ISA or starting the transfer process.
Transfers involving Stocks and Shares ISAs and Cash ISAs
People can generally transfer between Cash ISAs and Stocks and Shares ISAs, including moving from cash savings to investments or vice versa. Transfers should always be completed using the official ISA transfer process to preserve the ISA's existing tax benefits under current rules. Tax treatment depends on individual circumstances and may change.
Proposals announced in the November 2025 budget mean that transfers from Stocks and Shares ISAs to Cash ISAs will not be allowed from April 2027. As this is based on current announced policy, you should check the latest rules before making a transfer. There are currently no plans to prevent people transferring from Cash ISAs to Stocks and Shares ISAs.
When transferring a Cash ISA, it's also worth checking whether any notice periods, restrictions or charges apply, particularly if the money is held in a fixed-rate account.
Transfers involving Lifetime ISAs
A Lifetime ISA (LISA) is a savings or investment account designed to help people save for a first home or later life, with the government adding a 25% bonus to eligible contributions.
Lifetime ISAs are subject to specific transfer rules. You can generally transfer a Lifetime ISA to another Lifetime ISA without any charges or penalties but transferring from a Lifetime ISA to a different ISA type will be treated as a withdrawal and will trigger a 25% government withdrawal charge unless an exception applies (i.e. you're aged 60 or above or are suffering from a terminal illness).
For people interested in transferring to a Lifetime ISA from another ISA type, it's important to remember that transfers are subject to the Lifetime ISA allowance, which is currently £4,000 per tax year.
While the LISA allowance is £4,000, it also forms part of the overall ISA allowance, which is currently £20,000 for the 2026/27 tax year. This means if you contribute the maximum amount of £4,000 to a LISA, you'll only be able to contribute a maximum of £16,000 to all other ISAs you hold combined in that tax year.
To open a Lifetime ISA, you must be aged 18-39, and you can continue contributing until age 50. Lifetime ISAs can be used towards the purchase of a first home or accessed from age 60. Withdrawals for other reasons will result in a government withdrawal charge.
Scottish Friendly does not offer Lifetime ISAs.
Transfers involving Innovative Finance ISAs
Innovative Finance ISAs (IFISAs) allow people to invest their ISA allowance in peer to peer lending, which comes with increased risk.
Any potential returns from IFISAs come from interest paid by individuals or businesses that borrow the money, meaning your capital is not guaranteed and you could get back less than you invest. IFISAs are generally considered suitable for experienced investors who are comfortable with investment risk.
Transfers involving Innovative Finance ISAs can be more complex because what's allowed typically depends on the fund managers rules and the provider's processes. In addition, proposals announced in the November 2025 budget mean that transfers from Stocks and Shares ISAs to Innovative Finance ISAs will not be allowed from April 2027.
Scottish Friendly does not offer Innovative Finance ISAs.
Transfers involving Flexible ISAs
Flexible ISAs are not a separate ISA type. Instead, they are ISAs offered by some providers that allow withdrawn funds to be replaced without affecting your annual ISA allowance, subject to provider terms. The availability and features of flexible ISAs depend on the provider and product terms.
If you're transferring a Flexible ISA, additional considerations may apply where money has been withdrawn and replaced with one provider, before being transferred to another.
How long does it take to complete an ISA transfer?
If you're moving your ISA to another provider, the length of time the transfer takes will depend on the type of ISA being transferred. Providers are expected to complete ISA transfers within specific timescales, although delays can occasionally occur if additional checks or information are required. The provider will confirm the timeline you should expect.
If you transfer a Cash ISA to another Cash ISA
If you're transferring one Cash ISA to another, the process is usually relatively straightforward. HMRC guidelines state that ISA transfers can take up to 15 working days for Cash ISAs. The exact timeframe can vary between providers, but most transfers of cash-based ISA savings are completed within this period.
For transfers of other ISA types
Transfers involving Stocks and Shares ISAs and certain other ISA types can take longer than Cash ISA transfers. Depending on the type of ISA and the assets held, investments may need to be sold or transferred as part of the process.
Under current guidelines, ISA transfers for Stocks and Shares ISAs and other ISA types should take no longer than 30 calendar days. This includes transfers involving Innovative Finance ISAs and Lifetime ISAs.
If a transfer takes longer than expected, it's worth contacting the relevant provider for an update on progress.
Can I transfer multiple ISAs?
It's usually possible to transfer more than one ISA. In many cases, you can consolidate multiple ISAs into one ISA account, although this will depend on the types of ISA involved and whether the receiving provider accepts transfers from those accounts.
For some people, ISA transfers may simplify account management by reducing the number of accounts they need to keep track of. However, before consolidating ISAs, it's worth checking the features, charges, and transfer rules that apply to each account, as these can vary between providers and ISA types.
If you're considering transferring multiple ISAs, remember that the annual ISA allowance - currently £20,000 for the 2026/27 tax year - applies across all your ISAs combined, not per account.
Is it possible to transfer a Junior ISA?
A Junior ISA (JISA) is a long-term savings or investment account for children under 18, where the money belongs to the child and can only be accessed by them when they turn 18.
It's possible to transfer a Junior ISA to a new provider, but the full balance has to be transferred at once. Again, the official transfer process should be used to preserve the JISA's tax-efficient status under current rules. Tax treatment depends on individual circumstances and may change.
Scottish Friendly is an award-winning Stocks and Shares Junior ISA provider. Investment Life & Pensions Moneyfacts Awards 'Best Junior ISA provider' 2019-2025.
Can I do a partial ISA transfer?
In some cases, you can choose whether to transfer all of your ISA savings or just part of them. Whether a partial transfer is available will depend on the type of ISA, the provider, and when the contributions were made.
For money contributed in previous tax years, you may be able to transfer only part of the balance held in an existing ISA account, rather than transferring the entire account. While partial transfers are allowed for previous tax year funds, the exact options available will depend on the provider and ISA type.
Rules may vary depending on the provider and product terms. Before proceeding with a partial transfer, check the transfer options available with both providers.
Does transferring my ISA use my tax-free allowance?
No. Provided you use the official ISA transfer process, transferring an ISA does not use any additional annual allowance.
If you transfer money into an ISA during a given tax year and decide to transfer funds in the same tax year, it will count towards your annual limit because those contributions have already used part of your ISA allowance. However, the transfer itself does not use any extra allowance.
Similarly, transferring money from previous tax years will not affect your current ISA limit, because that money was accounted for in the previous tax year's allowance.
Using the official transfer process also helps keep interest tax-free, within current rules. Tax treatment depends on individual circumstances and may change.
Some key takeaways
An ISA transfer allows you to move your savings or investments from one ISA provider or type to another without losing its tax‑efficient status, provided you use the official transfer process.
Official ISA transfers don't use additional allowance; current-year contributions will have used allowance when paid in, while previous years' ISA funds don't affect your current year's allowance.
You can usually transfer between providers and, in many cases, between different ISA types, subject to provider rules.
Withdrawing the money yourself and opening a new ISA is not the same as a transfer and may affect your tax-free benefits.
Before transferring, check for fees, restrictions, and transfer timescales, especially on fixed‑term accounts.
Important information
The value of stock market investments can go down as well as up, so you or your child could get back less than you’ve paid in.
The funds paid into a Junior ISA belong to the child and can only be accessed by them when they turn 18.
Tax-Free means the investment grows free from tax, with the exception of any tax your provider has already paid on your behalf (for example on dividends from UK shares). Tax treatment depends on individual circumstances and may be subject to change in the future.
This information is for general guidance only and does not constitute personal financial advice.
Scottish Friendly does not provide financial advice. If you’re unsure whether an ISA or Junior ISA is suitable for your situation, you may want to speak to an independent financial adviser.