A GUIDE TO SAVING AND INVESTING IN ISAs

Helpful Hint

You are only permitted to take out one *ISA* per tax year. If you think you may have taken out more you must contact your manager immediately.

Can you cancel your ISA?

Yes. You have the right to cancel your ISA if you change your mind. You must notify the manager by returning the cancellation notice you receive from them, generally within 14 days of receipt.

Can you move your ISA from one manager to another?

Yes, and transfers during the tax year are permitted. For example, if you buy your ISA in the 2010/11 tax year and then want to transfer to a new manager in the same year, you must move all the contributions you have already made into the ISA in 2010/11. You will need to check that the new ISA manager is willing and able to accept the transfer.

Can you switch from your current ISA to a new ISA?

Yes. However, you should first check whether your current provider will impose a penalty.

Can you move money between cash, and stocks and shares ISAs?

You can move money from an existing cash ISA(s) to your stocks and shares ISA and it will not count as part of the Ł10,200 annual allowance. For example, in 2010/11 you could transfer Ł15,000 from your cash ISA(s) to a stocks and shares ISA and invest a further Ł10,200 without losing your tax-free benefits.

However, you cannot move money from a stocks and shares ISA to a cash ISA.

What can you do if you have a complaint?

First, take up your complaint directly with the ISA manager. If the manager is unable to satisfy your complaint, you can pursue the matter with the Financial Services Ombudsman.

What should you do if you have taken out too many ISAs in one tax year?

Tell your ISA manager immediately. They will ask you to contact HM Revenue and Customs, as in certain circumstances you may be able to keep your ISA open.