Stocks and shares Isa transfers

Can I transfer a stocks and shares Isa?

It should be relatively easy and straightforward to transfer your stocks and shares Isa.

Unlike cash Isa transfers, stocks and shares Isa transfers aren't just about chasing a better return - your return depends on what's in your stocks and shares Isa.

You could, however, unlock lower charges, better customer service, or a wider range of investment choices.

Transferring an Isa does not count as paying in, so you can move money invested in previous tax years in addition to making new Isa contributions.

• Find out more: best stocks and shares Isas

Do I need to sell my investments to transfer an Isa?

There are two ways you can transfer your stocks and shares Isa from one provider to another: an 'in specie' transfer or a cash transfer.

For an 'in specie' transfer, all the investments you hold in your stocks and shares Isa are transported to your new provider - you stay invested throughout the process.

If you're happy with your investments, this type of transfer makes sense, although it is likely to take longer, typically four to six weeks, and you might have to pay exit fees to your existing provider.

Alternatively, with a cash transfer, your investments are sold and the proceeds passed to your new provider.

The Isa status of your cash remains in place throughout the process, but your money will be out of the market, meaning that if the value of your investments go up, you could miss out on some of the gains.

• Find out more: what is a stocks and shares Isa?

How do I transfer my Isa to another provider?

Which? Money has found that parts of the investment industry are coming up short when it comes to efficiency and swift transfer processes - we've even found some examples of transfers taking more than 10 weeks to complete. 

According to the Financial Ombudsman Service, it shouldn't take more than 30 working days to move to another provider.

But your choice of Isa provider can make a real difference to your returns, with charges and investment choice just two factors to consider when making sure you are using the right one for you. We surveyed more than 6,000 investors and analysed the charges of 21 providers to find the best investment platforms  .

You can follow these steps to ensure your transfer goes through as quickly and efficiently as possible:

1. Shop around for the best Isa for you
2. Decide if you want to transfer your Isa as stock or cash
3. Contact your new provider or visit its website and complete its transfer form, most will offer the option to download the form online, but it will be necessary to print off and send the form through the post
4. If your transfer is taking a long time to process, call your new provider and get them to chase it up
5. Once your transfer is complete, check for missing payments

• Find out more: compare investment platform fees and charges

Can I transfer between cash Isas and stocks and shares Isas?

You can transfer between cash and stocks and shares Isas without losing the tax-free status of your money.

You should only transfer to a stocks and shares Isa if you're happy taking risks with your money. Alternately, you could transfer your money to a higher paying cash Isa.

If you would like to complete a partial transfer from, selling some investments in order to transfer the proceeds to a cash Isa but leaving others invested, bear in mind that the transfer form may not give you this option.

In this case, you'll need to either include a covering letter stating your instructions with your transfer form or contact your stocks and shares Isa provider separately in order to make your intentions clear.

Many stocks and shares Isa providers allow investors to hold cash on a temporary basis within a stocks and shares Isa while they are out of the market, but interest rates will usually be negligible so be wary of using it in place of a cash Isa.

• Find out more: best cash Isas