When you open an ISA, you can switch your funds to another provider during the same tax year, as long as you transfer the balance in full and the account terms and conditions allow it. This is referred to as your current years allowance.
You can even transfer money between Cash ISAs, Stocks & Shares ISAs and Innovative Finance ISAs. You can transfer from one of these into a Lifetime ISA if you are eligible, but the amount transferred will come out of your Lifetime ISA allowance.
When the tax year ends, the funds in your ISA are referred to as previous years’ allowances. If the terms of your account allow it, you can transfer your previous years’ allowances to another provider, and you don’t always have to transfer the balance in full.
If you decide to move funds between ISAs it’s really important that you use your new provider’s official transfer process. If you just withdraw money from your ISA and open a new one it will be viewed as part of that year’s ISA allowance, and may lose its tax-free benefit. However, all of our easy access variable Cash ISAs are Flexible and you will not lose your tax-free benefit if you pay back in before the end of the tax year.