I was looking to transfer my ISA from my current provider to Freetrade. Following Freetrade’s process, I submitted the ISA transfer process and now as the second step, I was trying to open the ISA account on Freetrade’s app. In the app, Freetrade is making me tick a box with the following statement -
“I have not subscribed, and will not subscribe, to another stocks and shares ISA in the same tax year that I subscribed to this stocks and shares ISA.”
I cannot tick the box with this statement as I have opened another stocks and share ISA this tax year (hence requested the transfer) and without ticking I cannot proceed with opening/transferring the ISA account.
I’d appreciate it if you all can share your views on this.
This will be something required by HMRC I guess. Officially you’re not allowed to open 2 ISA in one tax year but in your situation you’re really aren’t ‘opening’ a new one also as it’s just there to accept the transfer.
I wouldn’t worry but that’s just me.
@Stav am I off base here? Will HMRC be sending the goons round to rough up poor @Sahil based on my advice?
@neilb With an invalid ISA the issue is that the HMRC will come knocking on Freetrade’s door. There is a mechanism to fix it but there is a charge for it. I would advice @sahil to contact Freetrade and let them know.
Some providers specifically ask you to only transfer previous years ISA’s because they don’t want to get into the paperwork hassle. But of course one can have several different types of ISA with different providers in any one year provided the sum total cap is met.
