Hi,
If I chose to carry out a full cash isa transfer out of T212 will my T212 cash isa account close automatically, or will it stay open showing a zero balance? I want to continue to fund it this year, but need to fully transfer to another provider.
Ta muchly 
It wonât close until you actively request for it to be closed. Mine has been sitting with ÂŁ0 in it for over a year since I moved the whole balance into my stocks ISA.
Thanks SheepfootâŚI really appreciate your reply. I take it that is slightly different from transferring to another provider. The transfer form does talk about transferring in full and closing my the account from which Iâm transferring fromâŚ
You wouldnât transfer the account. Just draw the cash into your registered current account and transfer it from there to the required destination.
That would lose the ISA protection. The new provider will need to perform the transfer to keep it in the ISA wrapper.
It wonât lose the ISA protection. You can pay into and draw money from your ISA and move it to another ISA as long as at no point have you got more that 20K for that year in all your ISAs.
There is a reconciliation by HMRC at the end of every tax year from figures provided by all providers. That reconciliation will show that at no point did you have more that ÂŁ20K in all your ISAs.
And even if, but accident, you did say dinner points have more than the ÂŁ20K in ISAs and then were to correct it, you would probably not receive more than a minor slap on the wrist.
Sorry for the typos. But you get my drift.
Moving the money from an ISA, to a current account definitely causes the money to lose its ISA tax free status.
This may not be a big issue if the total invested is < 20k annual ISA limit, but if lets say you were moving 60k, the only way to get the 60k into another ISA in a single move is via an ISA â ISA transfer.
Thatâs true. But weâre talking about 20K in the same year.
A full ISA transfer usually does close the old account, but it depends on how the receiving provider structures the transfer request. Most transfer forms include a tick box or clause saying âtransfer full balance and close account,â and if thatâs selected, your existing ISA should be closed automatically once the transfer completes.
If that instruction isnât included, the provider might leave the account open with a zero balance. In practice, many platforms follow the âfull transfer = closureâ rule, but not all.
Also, just to be clear, youâre right to insist on an ISA-to-ISA transfer. Withdrawing to a current account does break the tax wrapper.