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Cashing ISAs

edited 30 November -1 at 12:00AM in ISAs & Tax-free Savings
3 replies 1.3K views
Labrynth_mazeLabrynth_maze Forumite
2 posts
edited 30 November -1 at 12:00AM in ISAs & Tax-free Savings
I have an ISA that is embedded in just 2 companies.
The value of the ISA (which started at £7k 2 years ago) is worth £9.5K.

Is it worth cashing in this ISA to take advantage of the gain made?
Is it worth cashing in part of it to capitalise on the gain and then topping the ISA back up again (if this is even possible!)?

In a nutshell what would anyone recommend bearing in mind that I obviously want to take advantage of a gain, but want to make sure it is tax free and would probably be using this monmey towards a deposit in 18-24 months time.

Hope someone can advise.
Cheers
LM

Replies

  • dunstonhdunstonh Forumite
    104.3K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    You dont need to encash them to protect the gains.

    Just switch some of the fund into an alternative fund. If you prefer that alternative fund to be lower risk, then pick a corporate bond or gilt fund.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • If you don't need the money but you want it to be in a 'safer' hand, then do what DD said, switch to a safer funds such as Bond/Money funds where the risks are relatively lower. Do not cash it unless you need to as you cannot 'top it back up' because there is a limit for every year and you cannot invest into ISA for previous years. Just look around for a different fund/company.

    Don't forget to check their exit/sale charges and transfer-out fees (if you change fund manager). Sometimes doing it through an IFA has an advantage as you can negotiate to, ie, get the initial charge rebates on top of discount offered by fund manager.
  • Thanks for your pieces of advise.
    Helps to put me on the right tracks.

    Think I'm goign to switch half of the funds into a gilt fund to protect what I have and take out a lot of the risk.

    Thanks
    LM :D
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