Frequently asked questions about ISAs in 2021

With the end of the tax year fast approaching, and lending currently paused as we help small businesses with Government backed loans, we wanted to share some of the most common ISA questions to help you make the most of your tax-free allowance. 

1. How do I transfer my ISA from Funding Circle to another ISA provider?

Transferring an ISA from one provider to another is called an ISA manager transfer. To process this, you need to complete a form with your new ISA provider, who will then get in touch with us to arrange the transfer and ensure your money remains protected in a tax-free ISA wrapper as it is transferred. Once we receive the form, we’ll proceed with our internal checks which will be followed by the ‘transfer out’ process.

One of the questions you will be asked by your new provider is whether you wish to complete a full transfer or partial transfer of your ISA funds held with us. It is worth noting that you can only transfer the cash balance available in your account. Therefore, if you have funds that are currently lent out to businesses, a partial transfer will allow you to transfer the balance that is currently available. Please find below more information on both options:

Partial transfer:

• This is a request to transfer a portion of the funds held in your Funding Circle ISA whilst leaving the remainder in the tax-free ISA wrapper 
• To request this, you can either provide a specific amount you wish to transfer on your ISA transfer form or select that you wish to transfer ‘all available funds at time of transfer’ 
• Once we receive the request, we will make sure you have the correct available funds in your account and then proceed with the transfer of the requested funds
• It’s important to note, you can only request a partial transfer of funds that were paid in during previous tax years

Full transfer:

• This is a request to transfer the total value of your Funding Circle ISA
• To request this, you must have no outstanding amount lent to businesses as this transfer requires the total balance to be available in your account 
• It’s important to note, you can request a full transfer of funds that were paid in during current and/or previous tax years

2. Flexi ISA – transferring funds back in 

The Funding Circle ISA is flexible, which means you can transfer funds in and out without it affecting your annual ISA allowance, however this must be done within the same tax year. 

As lending for individual investors is currently paused, we are unable to accept new transfers in, however if you have withdrawn funds from your ISA within the current tax year and wish to return these funds to your ISA before the end of the tax year, you can do this through a bank transfer. In order for us to allocate the funds to your ISA account without delay, please use the unique ISA reference as the reference for the bank transfer. 

If you don’t have your unique ISA reference to hand or need Funding Circle’s bank account details, please get in touch with us at contactus@fundingcircle.com.

3. How long does it take for an ISA transfer to complete?

We aim to complete ISA transfers within 15 days of receiving the request from the new ISA provider, however it’s important that all the information provided is accurate and the correct balance is available in the account. The maximum this process can take is 30 days, as set out by HMRC.

Please note that an ISA transfer usually takes longer than a withdrawal as the process involves additional checks and paperwork to ensure the ISA subscriptions are accurate.

4. What factors may delay my ISA transfer?

There are various factors which may delay the transfer of funds to your new ISA provider. 

Our process starts as soon as we receive the request and relevant forms from the ISA provider. Following this, we begin our internal checks. At this stage of the process, incorrect details, or information that does not match our records (ie. name, home address, date of birth, NI number) can lead to delays. In addition, requesting the wrong transfer type (ie. partial or full transfer) on your form can also lead to further delays. Therefore, we encourage anyone planning to make a transfer to double check the details they are providing before processing the request. This will mean we are able to process your request as quickly as possible.

If we do find any incorrect or inconsistent information, we will get in touch with you or the new ISA provider to confirm the correct information and to request any updated documents where necessary. 

All information is correct at time of publishing. While we want to help as much as we can, the information and documents found here are provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here.If you have any questions, please speak to your professional adviser or seek independent legal advice.