Stocks & Shares ISA to Cash NISA Transfer

magnoli

I have invested in Stocks and Shares ISAs over a number of years and built up over £50,000 within the ISA. I recently sold all the shares but retained the proceeds from the sale within the Stocks and Shares ISA as uninvested cash.
This attracts negligible interest but from July and the introduction of the NISA will I be able to transfer the whole amount into a new Cash NISA?
The uninvested cash within the S and S ISA is held with First Direct. Many thanks in advance.

Reaper

Yes you will be able to, but in the meantime note that stocks and shares ISA are not intended to hold large sums of cash.

What little interest you earn on it will be taxed, well not technically "tax" but a 20% levy.

the manager by law must deduct a flat rate 20 per cent charge before crediting it to the account. You do not have to declare this interest on a tax return.

Source: http://www.hmrc.gov.uk/isa/faqs.htm#25

magnoli

Many thanks for your reply Reaper. This is what I was hoping and surmised however I could not find any article that specifically said 'yes you can swap previous years S and S to a cash NISA'.
Of course this will enable me to get a 'reasonable' rate of interest in a Cash NISA versus the 0.1% in the uninvested cash with my S and S ISA without cashing out and losing the whole lot from the ISA wrapper. I think this is a major benefit of the recent budget changes as I was getting a bit 'windy' with shares riding so high at the moment.

Reaper

magnoli wrote: »

Many thanks for your reply Reaper. This is what I was hoping and surmised however I could not find any article that specifically said 'yes you can swap previous years S and S to a cash NISA'.

Here's one:

From 1 July 2014 all individual savings accounts will become New Isas (Nisas). This applies to all existing Isas and new accounts opened after 1 July... from 1 July 2014, you will be able to transfer amounts you hold in a stocks and shares Nisa to a cash Nisa.

http://www.investorschronicle.co.uk/2014/04/01/your-money/pay-less-tax/answers-to-your-questions-on-the-new-isa-6fJUUEhzI4lLY39QlVWoqJ/article.html

barak

magnoli wrote: »

.....Of course this will enable me to get a 'reasonable' rate of interest in a Cash NISA versus the 0.1% in the uninvested cash with my S and S ISA without cashing out and losing the whole lot from the ISA wrapper. I think this is a major benefit of the recent budget changes as I was getting a bit 'windy' with shares riding so high at the moment.

I just wonder how many institutions are going to offer you much more than 0.1% for your £50,000 cash. :undecided

magnoli

That quote from the investors chronicle is exactly what I was looking for Reaper, many thanks.
Barak, in any stocks and shares account ISA or otherwise, cash held seems to attract minimal interest. I am hoping that I will be able to find a cash NISA come July that will accept transfers in and offer the going rate for cash ISAs/NISAs. First Direct at the moment offer 2% on Cash ISAs over £40,000 (and accept transfers in). Obviously I will have to wait till July and the introduction of the NISA.
As you may see I am new to the forum and am really impressed with the quick accurate info/answers from fellow 'Money Saving' fans.