We study the spectrum and the transport properties of two identical, vertically coupled quantum dots in a perpendicular magnetic field. We find correlation-induced energy crossings in a magnetic field sweep between states differing only in the vertical degree of freedom. Considering the influence of a slight asymmetry between the dots caused by the applied source-drain voltage in vertical transport experiments these crossings convert to anticrossings accompanied by the build-up of charge polarization which is tunable by the perpendicular magnetic field. The polarization strongly affects the vertical transport through the double quantum dot and is manifest in an isospin blockade and the appearance of negative differential conductances in the magnetic field range where the charge localization occurs. Double quantum dots have recently attracted much interest as possible implementations of qubits and as model systems to study the few-particle physics of molecular binding [1,2,3]. In vertically coupled double quantum dots (DQD) the molecular binding for a single electron is determined by the vertical degree of freedom, while the lateral degree of freedom reflects the physics of the single dots or quasiatoms building up the molecule. In this paper we describe level crossings between few-particle states differing only in parity along the vertical direction. These crossings are based on Coulomb correlations between the electrons and may lead to strong charge polarization, which is tunable by an external perpendicular magnetic field [4]. Thus, these crossings mark changes of the molecular binding which originate from many-body effects.1 Corresponding author. E-mail: bwunsch@physnet.unihamburg.deBesides its importance for quantum dot physics, the effect illuminates the analogy between real spin and isospin, the latter of which describes the vertical degree of freedom [1]. This analogy manifests itself in an isospin blockade of transport through the double dot system [5,6,7]. Furthermore, the localization provides an effective two-level system which may be useful as a field-tunable charge qubit.We model the DQD in vertical direction by two parallel layers separated by a distance d. In lateral direction the electrons are confined by a rotationallysymmetric parabolic potential of strength ω0. Therefore, the vertical degree of freedom is reduced to an additional spin-like degree of freedom, the isospin [1]. In analogy to the real spin one can define a spin algebra for the isospin, where the z-component Iz specifies the vertical degree of freedom. An electron with Iz = +1/2 (Iz = −1/2) is situated in the upper (lower) dot. We