Are there doubts about how to move an ISA without losing tax benefits or incurring delays? This guide explains the transfer isa process clearly and practically so the correct steps are known before contacting any provider.
The transfer isa process covers different routes — cash ISAs, stocks & shares ISAs and ISAs held as Premium Bonds — and procedures vary by type and by provider. The focus is exclusively on the transfer mechanics, timelines, paperwork and the actions that reduce the risk of rejection, delay or accidental loss of tax wrapper.
Key takeaways: what to know in one minute
- Always ask the receiving provider to arrange the transfer. Do not withdraw funds yourself or the cash will lose its ISA status.
- Different asset types follow different timelines. Cash transfers typically 5–15 working days; stocks & shares can take 15–40 working days; Premium Bonds transfers depend on NS&I processing and may take longer.
- Complete the receiving provider's ISA transfer form fully. Missing identifiers or a signature are the most common causes of delay.
- Partial transfers keep the ISA tax wrapper. Transferring only some of an ISA balance is allowed but needs clear instruction on the form.
- Keep records and expect communication. Retain copies of forms, read provider emails, and chase after stated SLA expiry.
How the transfer isa process actually works
The transfer isa process is a legal and administrative handover that preserves the tax wrapper on existing contributions. The receiving provider submits a transfer request to the existing (transferring) provider. The transferring provider then verifies account ownership, checks for restrictions (for example fixed-term notices), and moves the relevant assets or cash to the receiver.
Key legal point: a transfer conducted by the receiving provider maintains ISA tax advantages. If the investor withdraws funds and re-deposits them, that money may count against the current tax year's ISA allowance and could lose its protected status.
Common transfer varieties:
- Full transfer: the whole ISA balance moves and the transferring ISA closes.
- Partial transfer: a specified amount moves while the remainder stays.
- In-specie transfer: stocks and funds move without being sold.
- Cash transfer: cash balance moves as cash.
How providers interact:
- Receiving provider completes a formal transfer instruction and sends it to the transferring provider.
- Transferring provider validates the request, checks for restrictions and confirms timings.
- Assets are moved either electronically or via sale and cash transfer depending on asset type and provider capability.
- The receiving provider confirms completion and updates the account records.
Useful authoritative guidance is available at GOV.UK: transferring an ISA.
Transfer isa process from Premium Bonds explained
Premium Bonds are held by National Savings & Investments (NS&I) and the transfer isa process from Premium Bonds differs from standard bank or investment providers because NS&I acts as the register holder. Two common scenarios exist:
- Transferring Premium Bonds to a cash ISA at another provider (as cash) — NS&I will cash in the Premium Bonds and send proceeds to the receiving ISA provider, provided the holder requests a transfer. This is effectively a sale and may be subject to NS&I processing times.
- Transferring Premium Bonds to another ISA wrapper (rare) — Premium Bonds cannot be held inside most stocks & shares ISAs. The usual route is cashing in with NS&I and transferring the cash to the receiving ISA.
Practical steps with NS&I:
- Open the receiving ISA if not already open.
- Complete the receiving provider’s ISA transfer form and select the option for transferring from NS&I Premium Bonds.
- The receiving provider will contact NS&I or instruct the transferring provider accordingly.
NS&I timing notes: NS&I processes can be slower than typical banks; allow up to 30 working days in some cases. Confirmation and payout usually take place by BACS or CHAPS depending on amount and provider preferences. Confirm fees and payout methods with the receiving provider.
More NS&I details at NS&I official site.
Steps to transfer a cash ISA without penalties
- Open the receiving cash ISA (if necessary). Many providers allow completing a transfer form without a completed account, but opening first reduces friction.
- Do not withdraw money yourself. Withdrawal breaks the ISA wrapper and may trigger loss of tax protection.
- Complete the receiving provider’s official ISA transfer form. Include:
- Your full name and date of birth
- Transfer amount (full or partial)
- Transferring provider name and ISA account number
- Signature and date
- Send the form as directed (online upload or post). Keep a copy.
- The receiving provider contacts the transferring provider and requests the funds.
- The transferring provider verifies details and transfers the cash.
- The receiving provider credits the ISA account and confirms completion.
Timing expectations (indicative at time of writing):
- Same provider (e.g., switching within same banking group): 3–5 working days.
- Between different banks/building societies: typically 5–15 working days.
- Transfers involving fixed-term accounts or notice periods: may take the length of the notice period or the product maturity date.
Special considerations:
- Fixed-rate cash ISAs often have early withdrawal penalties. If the ISA is in a fixed product, the transferring provider may refuse to transfer until maturity or may apply an early exit fee. The receiving provider should flag such restrictions on the transfer form.
- Partial transfers from a fixed-rate product may be disallowed.
Transferring stocks and shares ISA: process and timelines
Stocks & shares ISAs are more complex because transfers can be done in cash (selling assets) or in-specie (moving the same assets). The investor must indicate the preferred method on the receiving provider’s transfer instruction.
In-specie transfer benefits:
- Avoids selling assets, which means no dealing charges, no settlement delays and no potential taxable disposals (within ISA wrapper there's no capital gains tax anyway, but selling might be undesirable for strategy reasons).
Key steps for stocks & shares ISA transfer:
- Confirm receiving provider accepts the specific holdings in-specie (not all brokers accept all share types or funds).
- Complete the receiving provider’s transfer form selecting "in-specie" where available.
- The receiving provider instructs the transferring provider to move holdings via CREST or custody systems.
- If in-specie is impossible, assets will be sold and cash transferred — this should be communicated clearly.
Indicative timelines:
- In-specie transfers within major UK brokers: typically 15–30 working days.
- Transfers involving overseas listings or illiquid holdings: 30–60 working days or longer.
- Selling assets and transferring as cash: 10–30 working days depending on settlement cycles and provider speed.
Costs and charges:
- Some providers charge an exit fee or transfer-out fee; check both transferring and receiving provider fees.
- Brokers may charge for corporate action processing or re-registration fees for certain share classes. Explicitly request a fee schedule in writing.
If the transfer is time-sensitive (e.g., to capture specific corporate action), state this to both providers and request written confirmation of timing.
Providers require clear identifiers to match accounts quickly. Common required information:
- Full name, date of birth and address
- National Insurance number (often requested but not always mandatory)
- Transferring provider name and exact ISA account number or NS&I reference
- ISA type (cash, stocks & shares, innovative finance)
- Instruction whether the transfer is full or partial; if partial, the exact amount or value to transfer
- For stocks & shares: ISIN, ticker, fund codes or details of the holdings for in-specie transfers
- Signature and date
Checklist to speed processing:
- Provide photocopy or scanned ID only if asked; do not send unnecessary personal documents.
- Confirm BACS/CHAPS details if transferring cash by bank transfer (usually handled by providers).
- Request transfer reference from transferring provider for patching problems.
Common transfer isa process mistakes to avoid
- Withdrawing funds before transfer: this breaks the ISA wrapper and may cause loss of tax protection or use of current year allowance.
- Failing to complete the receiving provider’s form correctly: the most frequent cause of rejection.
- Choosing in-specie without confirming acceptance: the receiving broker may not accept certain shares or funds.
- Ignoring fixed-term restrictions: transfers from fixed-rate ISAs may be refused or penalised.
- Not checking fees: both exit fees and receiving platform fees can make a transfer uneconomic.
- Not keeping copies: losing proof of instruction makes dispute resolution harder.
Practical remedy for a rejected transfer:
- Ask the transferring provider for the rejection reason in writing.
- Provide missing details promptly to the receiving provider and request immediate resubmission.
- If unresolved, escalate to the provider’s complaints team and, if needed, the Financial Ombudsman Service.
Transfer provider comparison: typical timelines and fees (indicative 2026)
| Provider type |
Typical timeline |
Common fees |
| High-street banks (cash ISA) |
5–15 working days |
Usually none; fixed-product charges possible |
| Online brokers (stocks & shares) |
15–40 working days (in-specie slower) |
Platform transfer fees, dealing charges |
| NS&I Premium Bonds |
Up to 30 working days (indicative) |
No NS&I exit fee, but receiving provider may have entry rules |
Transfer ISA process at a glance
1️⃣
Open receiving ISA
Ensure provider accepts asset type
2️⃣
Complete transfer form
Full/partial, in-specie or cash
3️⃣
Receiving provider submits request
Provider-to-provider communication
4️⃣
Transfer completes & confirmation
Keep proof and check balances
Analysis: advantages, risks and errors to avoid
Benefits ✅
- Keeps the ISA tax wrapper intact when done via the receiving provider.
- Allows consolidation of multiple ISAs to simplify management or reduce fees.
- Enables switching providers for better rates or services.
Risks ⚠️
- Time delays, especially for complex in-specie moves or NS&I transactions.
- Potential exit charges or loss of bonus interest in fixed-term products.
- Inaccurate or incomplete forms leading to rejections.
Errors to avoid ✗
- Authorising a transfer without confirming asset acceptance in-specie.
- Not checking whether the transfer will use up the current tax year's allowance.
- Ignoring communications from either provider during the process.
Frequently asked questions
Can I transfer an ISA if I have contributed this tax year?
Yes. Contributions made in the current tax year can be transferred provided the receiving provider accepts current-year subscriptions; follow the receiving provider’s process so the money retains its tax year attribution.
How long does a transfer from Premium Bonds usually take?
Transfers from Premium Bonds can take up to 30 working days in many cases; NS&I processing may be slower than bank transfers. Always ask the receiving provider for an estimated timeline.
Will transferring my stocks & shares ISA trigger capital gains tax?
No. If the transfer is executed between ISA providers, the ISA wrapper is preserved, so there is no capital gains tax on movements within the ISA. Selling outside an ISA could trigger tax where applicable.
Can a partial transfer be reversed once processed?
Once the receiving provider has accepted and the transferring provider has completed the move, reversal is difficult and depends on provider agreement. Treat partial transfer instructions as final unless both providers agree otherwise.
What happens if the transferring provider delays or refuses the transfer?
Request the transferring provider’s reason in writing and ask the receiving provider to resubmit or to escalate. If unresolved, use the transferring provider’s complaints process and consider the Financial Ombudsman Service.
Your next step:
- Open or verify the receiving ISA and download its transfer form.
- Complete the form fully, choose in-specie only if confirmed accepted, and submit without withdrawing funds.
- Retain copies and set calendar reminders to follow up at the provider SLA dates.