Knowledge isn’t just power, it’s empowering — and that’s why information helps us make good decisions. So, when it comes to transferring an ISA, drilling into the detail can help you decide what is right for you.
In this blog, we’ll cover the different aspects of what a Stocks and Shares ISA (S&S ISA) is, transfer rules and considerations, and why you should choose Wealthify as a home for yours.
- Why transfer to a Wealthify Stocks and Shares ISA
- Stocks and shares ISA transfer rules
- Can you transfer cash ISA to stocks and shares ISA
- How long does it take to transfer Stocks and Shares ISAs
- Do ISA transfers affect allowances?
- ISA transfer fees and charges
- How to transfer Stocks and Shares ISAs to Wealthify
Why transfer to a Wealthify Stocks and Shares ISA
Changing providers, in any context, can seem like a bit of a headache. When life is busy, it can be tempting to put off this financial admin for another day, but doing so could mean missing out on benefits elsewhere.
What’s more, moving to a new S&S ISA is a lot simpler than you might expect.
And when it comes to who you choose, Wealthify offers flexibility, transparency, and accessibility. The benefits of a Wealthify Stocks and Shares ISA include:
- Your choice: A Wealthify S&S ISA allows you to pick what style of investment suits you. From cautious to ambitious, you select your investing approach so that the money in your S&S ISA is invested your way.
- Ethical options: Wealthify’s ethical investment option allows you to stay true to your values while investing — putting your money in organisations striving to do good for society and the environment.
- Low, transparent fees: Wealthify doesn’t charge for deposits, transfers, withdrawal of funds, or closing your account. While fund and trading fees are subject to change, we always strive to negotiate low fees that allow you to maximise your returns.
- Easy and flexible: Our S&S ISA allows you to withdraw money from your account and re-deposit them back in the same year, without impacting your ISA allowance. What’s more, everything is managed via our easy-to-use app.
- An Aviva company: Wealthify is owned and backed by Aviva and regulated by the Financial Conduct Authority, so you can be confident your money is in good hands.
Stocks and shares ISA transfer rules
From potential exit fees to benefits you could lose in the move; if you’re thinking about transferring an existing ISA to a new provider, there are a few key things to keep in mind.
It’s also worth thinking about what type of ISA you already have and the specific rules around transferring to a S&S ISA.
So, let’s dig into it!
It’s important to remember that you can transfer to a new ISA account at any time. But while it might seem an intimidating process, it doesn’t have to be complicated. Still, you’ll want to make sure you’re familiar with all the rules associated with a S&S ISA transfer.
And with this process, the first step is to select the provider you’d like to transfer to.
When considering a new provider, you’ll want to think about what benefits they offer (as well as benefits you might lose) and whether it’s free to transfer to them.
Remember, while some providers – like Wealthify – are free to transfer to, there may still be exit fees to pay when leaving your current provider.
You’ll also need to consider whether you want a DIY ISA where you self-select your investments, or a provider where experts pick and manage them for you.
If you choose the latter, it’s worth seeing if there are any preferences to go along with this, such as choices for ethical investing — or deciding which level or risk you take with your investments.
With all this cleared up, you can kickstart the transfer process, which is managed via the ISA transfer form.
Any money withdrawn outside of the form will lose its tax benefit, even if you then reinvest it into a new ISA. That’s why you must let your provider know your plans and fill out an ISA transfer form.
Once that’s done, everything can be managed between the two providers.
Other rules to consider include:
- Any money you’ve paid into your existing ISA during the current tax year will have to be moved in full, in order to retain the tax benefit.
- If you’re transferring an ISA from a previous year, you can move as much or little of this money across to a new provider without affecting your ISA allowance for the current year.
- Not every provider will allow you transfer money over from another account, but they all have to allow outward transfers to new providers.
Can you transfer a Cash ISA to Stocks and Shares ISA
There are lots of reasons why people opt for a Stocks and Shares ISA over other ISA types.
The main one being that the opportunity for long-term exposure to the markets increases the likelihood of higher returns in the future. But as with all investments, however, you could also get back less than you invest.
So, if you currently have a Cash ISA but are looking to transfer to a S&S ISA, you can do just that!
While Wealthify can’t accept transfers from Innovative Finance or Lifetime ISAs, Cash ISAs can be transferred easily and speedily. Just make sure you use the ISA transfer form, so that your money retains its tax benefit.
How long does it take to transfer Stocks and Shares ISAs
Transferring to a Wealthify Flexible Stocks and Shares ISA is quick and easy. As mentioned above, you can begin the process by filling out the transfer form. After this, you’ll need to take our Suitability Quiz to ensure your new S&S ISA suits your financial circumstances and needs.
Wondering about timescales? Once you’ve had confirmation, the money should transfer into your new provider’s account in 15 business days for a Cash ISA, or 30 calendar days for a transfer from any other type of ISA.
Do ISA transfers affect allowances?
People generally opt for an ISA because of the associated tax benefits and flexibility. This is because you can save up to £20,000 per tax year (which is your ISA “allowance”) without paying tax on any interest earned.
With a S&S ISA, that same tax benefit applies to any capital gains.
The ISA allowance for 2024/2025 is £20,000, with the deadline to use it set for 5th April 2025. After this date, your ISA allowance will reset, and a new allowance will be available to use from 6th April.
It’s worth noting that when transferring money from previous years, you can move this across and still keep the tax benefits, as long as you use the official ISA form. Manually withdrawing and depositing into a new account means that money will count towards your current year’s allowance. Of course, tax treatment is dependent on personal circumstances, and may be subject to change in the future.
Wealthify’s flexibility means you have real control when handling your S&S ISA, allowing you to withdraw money and replace it within the same tax year (which is something that’s not offered by all providers). This means you can work with the changing tides of your financial year, and still ultimately secure the tax benefits offered by this account.
ISA transfer fees and charges
As mentioned, Wealthily is fee-free for both transfers in and out, so you’ll only need to check the potential for outward transfer fees from your current provider.
And when it comes to managing your account for you, Wealthify charges an annual fee of 0.6% to keep things clear and simple. Fund and trading fees are variable, with approximate fees of 0.16% for Original Plans and 0.70% for Ethical Plans.
How to transfer Stocks and Shares ISAs to Wealthify
If you’re looking to transfer to a S&S ISA and build you future wealth, Wealthify offers a clear, flexible and low-fee option for you to just do that.
Just make sure you let your current provider know before transferring, use the proper ISA transfer form to do so, and take our Suitability Quiz so our team of experts can build a Stocks and Shares ISA that’s tailored to you!
With investing, your capital is at risk, so the value of your investments can go down as well as up, which means you could get back less than you initially invested.
Wealthify does not provide advice. If you’re not sure whether investing is right for you, please speak to a financial adviser.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
