If I want to move to another ISA provider, how can I retain the tax-free wrapper?

Updated 4 weeks ago

Firstly, you should avoid directly withdrawing ISA balances to your nominated bank account, unless they’re from the 2021/22 tax year, where you can use your flexible ISA allowance to withdraw and place funds into another platform. But please note, if you withdraw from a current year Zopa ISA, you won’t be able to put that money back into your Zopa IFISA.

For previous tax year ISAs, you’ll need to transfer funds from your Zopa ISA to another ISA provider. We accept both requests to transfer all of your funds as well as partial transfers which leave some money invested with Zopa. If your money is invested in loans, you’ll need to turn off reinvestment to direct funds to your holding account, or start a loan sale for the amount you wish to transfer.

However, please be aware that this second option is dependent on there being other investors who want to purchase your loans. Also, there’s a 1% fee on all loan sales. By turning off reinvestment and directing repayments to your holding account, you'll tend to get an average of 3%-5% of your balance back each month. This means that after 6 months you could have up to 30% of your balance available to transfer as cash and you won’t need to pay any fees. 

To transfer funds from your Zopa holding account, you’ll need to complete an ISA transfer form from the new ISA provider. The new ISA provider will contact us with your instruction and we’ll transfer the funds. Please be aware that this process can take up to 30 days.

Was this helpful?

Need to get in touch?

Our team of helpful humans are on hand.

Contact us