transfering stocks and shares isa`s

rfairfield

Hi....i was considering transfering my stocks and shares isa`from my HSBC bank accounts that i have just canceled to either my Cheshire Building Society account or to my new bank account at the Co-operative Bank,but i have just been told today that i cannot transfer stocks and Shares isa from one bank account to any other and i would have to cancel these isa`s and take the penalty loss for closing the isa`s.This has confused me because you can transfer cash isa`s without penalty,so why not the stocks and shares isa`s.

Mikeyorks

You can transfer S&S ISAs ..... but only to providers who support them. And Cheshire, for example, don't appear to do so directly. They do offer some 3rd party L&G Equity Bonds - which you certainly don't want to touch. And only reference cash ISA transfers on their site.

Normally you have to sell the content first and then transfer as cash. And then repurchase on arrival. But the cash is transferred under cover of the ISA wrapper. But you do have to choose a provider who supports that type of ISA. One of the general providers such as Hargreaves Lansdown is a better bet than using a Bank.

Have you understood the 'penalty loss' correctly? If you're with a Bank - are you holding a tied product in the ISA?

dunstonh

i have just been told today that i cannot transfer stocks and Shares isa from one bank account to any other

This is the cause of your confusion. You are mixing up bank accounts with S&S ISAs. You can transfer S&S ISAs to other S&S ISAs. However, if you want your money back in your bank account then you need to sell the investments in the ISA and withdraw your proceeds. However, if you do that, you lose the tax free status.

Vortigern

rfairfield wrote: »

...HSBC bank accounts that i have just canceled <snip>... i would have to cancel these isa`s

It would appear that you've closed your HSBC bank account, but does that mean that you have to close the ISAs? Can't you just leave the ISAs with HSBC, or is that not allowed?

Otherwise do as others say above - transfer your ISA to a provider that accepts transfers, like H-L or Fidelity. There's info somewhere on this site about low-cost Stocks & Shares ISA providers

bigfreddiel

Vortigern wrote: »

It would appear that you've closed your HSBC bank account, but does that mean that you have to close the ISAs? Can't you just leave the ISAs with HSBC, or is that not allowed?

or just don't use your hsbc account - empty it and thenjust leave it!

mostwelcome

or just don't use your hsbc account - empty it and thenjust leave it!

Just a note though - be careful you don't empty the Stocks & Shares ISA by cashing in the investments (just to move them I mean - unless you meant to sell them anyway?). This will forfeit part of your ISA allowance unnecessarily. I know you can transfer them to HL ISA pretty easily, I've done so myself.



hl.co.uk/investment-services/isa/transfer-an-existing-isa