Can I transfer a Cash ISA into a Stocks & Shares ISA Without it Impacting my Allowance?

Hi,

I have a cash ISA with Trading 212, which was taken out in November 2024, and this was for the full £20k allowance in that financial year.

I inherited some money in 2025 and now have a financial advisor and invested £75k into Quilter in July 2025. Part of that is a £20k stocks and shares ISA, which is my 2025/2026 ISA allowance used up. My other savings with Quilter will be, year on year, transferred over to stocks and shares ISA by the £20k allowance each year, until it's all invested in Stocks & Shares ISAs, stand fast any budget announcements today!!

My question is, can I transfer my Cash ISA from Trading 212 into Quilter and change it to a stocks and shares ISA this year (2025/2026), or does that breach the £20K limit per year?

Hello Ian, that's a great question about ISA transfers.

The good news? You can transfer last year's Cash ISA from Trading 212 into your Quilter Stocks & Shares ISA this year without touching your current £20,000 allowance.

Here's how it works. The £20,000 annual limit for 2025/2026 only applies to fresh money you pay in this tax year. When you transfer funds contributed in a previous tax year (like your £20,000 from 2024/2025), this doesn't count towards your current year's £20,000 limit. You're simply moving money that's already inside the ISA wrapper from one home to another.

The crucial bit: don't withdraw the money yourself.

To keep your tax-free status intact, you need to use the official ISA transfer process. Contact Quilter and ask them to initiate the transfer. They'll handle everything directly with Trading 212, moving your money between ISA wrappers without using up any of your current allowance.

In summary: your £20,000 from Trading 212 was your 2024/2025 allowance. Transferring it to Quilter this year won't affect the £20,000 you've already invested as your 2025/2026 allowance.

We hope this helps!