Things to consider before transferring an ISA

Before you transfer a ISA you should be aware of the implications this may have.  Please read the following information so you know what information you should check before completing any transfer paperwork.

CHARGES

Your current ISA provider may impose interest penalties for transferring the money out (Usually fixed rate ISAs or notice accounts). There may also be charges to close or transfer your ISA, as well as dealing charges for selling any shares and possibly for funds too.

Some investments in ISAs are not easy to sell e.g. structured products, which may also incur exit penalties.

You should satisfy yourself that any penalties incurred do not negate the benefits of the transfer.

Transfer Limitations

You can transfer all or only part of your ISA savings from previous years.  However, if you want to transfer the current year’s allowance, you must transfer the whole amount.  To do this, you must fill out an ISA transfer form from your current provider.  If you withdraw the money without doing this, you will not be able to reinvest that part of your tax-free allowance again.

Unknown Sale Price

Unless you sell the assets in your old policy yourself, your old provider will sell your investments as soon as it receives the instruction from the new provider.  You will not know the price and will not be able to delay the sale if, for example, the market has just fallen.

OUR DUTY OF CARE LIMITATIONS

Although we are not providing advice in relation to the appropriateness of this offer, we sometimes receive information that might indicate that the transfer may not be in your interests, e.g. if there is a transfer penalty.  In this instance we will endeavour to consult with you further to confirm whether or not you wish to proceed.  However, please note that as this offer in no way constitutes Independent Financial Advice, the responsibility for the suitability of the transaction, including investigating any charges, penalties or loss of guarantees, lies entirely with you.

You can contact us at any point for guidance on ISA issues and if you wish to take Independent Financial Advice please feel free to contact any member of the team.