4) Accessing or Transferring An ISA
Can I transfer or consolidate my existing ISA(s)?
Yes, you can transfer an existing ISA from one provider to another as long as it is allowed within the product terms and conditions.
Note: Transfers from investments made in previous years can be done in part or full, whereas transfer from any money invested in the current tax year, must be for the full amount.
What happens to my ISA if I die?
ISAs retain their tax benefits after you die, until they’re closed. An added benefit is that your spouse or civil partner can inherit the value of your ISA as a one-off additional tax-free allowance.
If no spouse or civil partner, your ISA will end when either:
– your executor closes it
– the adminstration of your estate is completed
Otherwise, your ISA provider will close your ISA 3 years and 1 day after you die.
There will be no Income Tax or Capital Gains Tax to pay up to that date, but ISA Investments still form part of your estate for Inheritance Tax purposes.
When can I access my money and do I pay tax on ISA withdrawals?
ISAs allow you to take your money out of an ISA at any time, without losing any tax benefits. The exception to this rule is the Lifetime ISA as your money can only be withdrawn to make a first time house purchase, or if you are saving for retirement, when you reach 60.
In order to attract a higher rate of return, some ISA’s tie your money up for a specific period of time. You will need to check your providers Terms and Conditions to see if there are any access penalties and/or fees.