Transferring an ISA counted as opening an ISA?

[riz1]

I had ISAs with Egg and HASBC.
I transferred my 2007/08 Egg ISA to my [older] HSBC ISA a couple of months ago.
Just tried to open an Egg ISA with my 2008/09 allowance and been told I cannot.
When I enquired I got this reply:
I can see that you transferred your Cash ISA to another provider during this tax year, therefore as the rules state you can't open or pay money into more than one Cash ISA in one tax year, you won't be able to open another Cash ISA with anyone this tax year.

As you transferred it to another provide this is classified as paying money into an ISA, therefore you won't be able to open another one until 06 April 2009.

So how does that work then?:thinking:
Surely in that case I would never be able to transfer an allowance between banks unless I want to open invest that year?:shrug:

Obviously if Egg are talking bovine excrement I will have to look elsewhere for my Cash ISA for this year

[Lujan82]

IIRC earlier this year people were opening 'best-buy' ISAs for ths years allowance as well as another ISA to house previous years' funds.

Sounds like tosh to me, but I'm not 100% sure. Someone will be along to confirm I'm sure.

[riz1]

That's what I thought too. Also conflicts with earlier advice they gave me when moving so I have forwarded their older reply back to me to them to review

[BigJonnyB]

I'm presuming you did a proper transfer of the ISA (i.e. through the banks, not done yourself). If so, there is no reason you can't fund this years ISA too...sounds like they don't know what they are talking about!

JB

[riz1]

Yes I did it formally bank to Bank.
It is interesting that during the transfer it was HSBC who didn't seem to know what they were talking about initially until I all but dragged them into going through an ISA transfer form with me.
Pity as I have a saving account with Egg so it would have been convenient.
GUess I will have to open an account with YET another bankthen...[sigh]

[riz1]

Egg are suggesting HSBC didnt process the transfer properly and have treated it like a cash deposit into a ISA using my allowance up. I will take it up with them! :mad:

[riz1]

Info should be useful to anyone following this thread:
Spoke with HSBC - problem not at their end as they still show me as having full £3.6k allowance available.
Spoke to a Savings expert at Egg. Problem is in their setup:
Their system does not allow transfer out from an ISA and then opening of a new ISA within the same Tax Year. No way to divert this system either.
Also they don't allow transfers in so I cannot open one with them [this year] nor open it elsewhere, open one with them next year then transfers this subscription in either.