Convert Stocks & Shares ISA to Cash ISA

wesricho7

Hi all,

this is my first post on here. I opened a Stocks and Shares ISA late last year so that I could transfer the volume of shares I had into the ISA and sell my shares so that I could utilise my ISA allowance and protect my shares from Capital Gains Tax.

I have now sold my shares so I am wondering whether I can convert the Stocks & Shares ISA into a cash ISA and transfer it for a better rate or am I stuck with this Stocks and Shares ISA that I will no longer require?

Any help would be great.

thanks

talexuser

You can only convert cash to funds/shares, not the other way round,

vickssinex

No-you can only transfer from a Cash ISA to an S&S ISA, not the other way.

wesricho7

thanks vickssinex. Much appreciated. I know that you can have a cash ISA and a Stocks and Shares ISA running simultaneously as you can have up to £5760 in cash and the same in Stocks and Shares. How do I go about doing this so that I can utilise my Cash ISA allowance? Many thanks

cloud_dog

wesricho7 wrote: »

How do I go about doing this so that I can utilise my Cash ISA allowance?

Ummmm...... You open one with a provider.

vickssinex

I would have thought that you just closed the Stocks ISA and paid the money into the Cash ISA yourself. You would have to watch you didn't exceed your cash allowance for the year though.

innovate

What was the value of the shares you put into your S&S ISAs? Your maximum ISA allowance this financial year is £11,520.

If, say your shares were worth £10,000 when you transferred them late last year, you would have £1,520 of your allowance left to put into a cash ISA. You will get a new allowance on April 6 2014.

innovate

vickssinex wrote: »

I would have thought that you just closed the Stocks ISA and paid the money into the Cash ISA yourself. You would have to watch you didn't exceed your cash allowance for the year though.

see my previous post - it is not just the cash ISA allowance that needs to be watched.

wesricho7

is that correct vickssinex? So I can just close my Stocks and Shares ISA and open a Cash ISA in the same financial year?

Is ther rule therefore simply that you can not have 2 open from the same financial year at the same time?

Many thanks

wesricho7

innovate wrote: »

What was the value of the shares you put into your S&S ISAs? Your maximum ISA allowance this financial year is £11,520.

If, say your shares were worth £10,000 when you transferred them late last year, you would have £1,520 of your allowance left to put into a cash ISA. You will get a new allowance on April 6 2014.

The value of my shares when transferred was 11,500 almost exactly. The share price of my shares rose quite significantly so they were still protected by the S&S ISA, but I sold them for way over the max allowance.

The balance is now empty in my S&S though. so does this mean I already used my allowance this year and can not use any more yes?

thanks

jimjames

Yes that is correct.

You will have to wait until 6 April to open a cash ISA.

You may find you can get a better rate outside of an ISA though.

Alternatively if you are happy with the concept of risk why not put it in some different funds or ones for income instead? Obviously that will need to be after April too if you have already withdrawn the cash.