Transfer from cash to S&S isa

adamcartney

Hopefully, someone will be able to give me the answer to this simple question:

I have a cash isa that I have been paying into for 3 or 4 years. I have also paid 10k into it this year (so the grand total is c.30k). I would like to use the 5k left of this year's allowance to buy into a S&S isa and also to transfer some of the 30k from the cash isa to this s&s isa. But I've read that if you've made a contribution to your cash isa this year then you must transfer all (not part) of the funds you have paid in this year to the s&s isa. Is this right? I only want to transfer about 4k from the cash isa to an s&s isa - not the full 10k I've paid in this year. Is this possible?

Thanks

masonic

Yes, your current years subscriptions must stay together in one ISA. You can open an empty S&S ISA and transfer any amount from your previous years subscriptions into it, leaving all of your current subscriptions in the cash ISA.

colsten

Easy: don't request transfer any of the current year's funds. You have £30K in the cash ISA, of which £10K was deposited this year, so some £20K is from previous years. As you only want to transfer £4K, you don't have to use any of the funds deposited in the current year.

There are a couple of questions about this and boxes to tick on your transfer form.

jimjames

adamcartney wrote: »

HBut I've read that if you've made a contribution to your cash isa this year then you must transfer all (not part) of the funds you have paid in this year to the s&s isa. Is this right?
Thanks

No that isn't right. Cash ISA and S&S ISA are completely separate and you can have 1 of each every year up to the total £15k allowance.

masonic wrote: »

Yes, your current years subscriptions must stay together in one ISA. You can open an empty S&S ISA and transfer any amount from your previous years subscriptions into it, leaving all of your current subscriptions in the cash ISA.

That's not quite correct.

Cash and S&S ISAs are completely separate so there is no requirement to transfer them together. All money paid into each type of ISA for the current year must remain together though.

So the OP can open a new S&S ISA and deposit the remaining balance of their allowance for this year. As long as they don't go over the total of £15,000 between cash and S&S then that is fine.

masonic

jimjames wrote: »

So the OP can open a new S&S ISA and deposit the remaining balance of their allowance for this year. As long as they don't go over the total of £15,000 between cash and S&S then that is fine.

:doh: Yes of course. It's been a long day.

masonic

jimjames wrote: »

adamcartney wrote: »

But I've read that if you've made a contribution to your cash isa this year then you must transfer all (not part) of the funds you have paid in this year to the s&s isa. Is this right?
Thanks

No that isn't right. Cash ISA and S&S ISA are completely separate and you can have 1 of each every year up to the total £15k allowance.

Just to be crystal clear, that statement is factually correct, is it not? It isn't possible to do a partial transfer of some of the current years subscriptions between a cash and S&S ISA even though if you hadn't already put the money in you could have split it between them.

jimjames

masonic wrote: »

Just to be crystal clear, that statement is factually correct, is it not? It isn't possible to do a partial transfer of some of the current years subscriptions between a cash and S&S ISA even though if you hadn't already put the money in you could have split it between them.

Yes that's correct, if the money has been paid in already.

I'd read it that the OP wanted to open a S&S ISA with the remaining balance that hadn't been paid into an ISA yet. If that is the case then they can do so without any requirement to transfer the cash ISA.

masonic

jimjames wrote: »

I'd read it that the OP wanted to open a S&S ISA with the remaining balance that hadn't been paid into an ISA yet. If that is the case then they can do so without any requirement to transfer the cash ISA.

The OP wants to open a new S&S ISA and fund it with new money up to his allowance, but also transfer part of his cash ISA into the S&S ISA. Because he wishes to transfer less than the amount he has subscribed this tax year, it is possible only if he ticks the box requesting previous years subscriptions to be transferred.

masonic

Just to add to the confusion, given the OP wishes to end up with ~£9k in S&S and £26k in cash, he might wish to consider transferring his current years subscriptions in full to the S&S ISA and he would then be free to open a new cash ISA (perhaps getting the best new money only ISA). That would leave him with £10k in S&S, £20k in the legacy cash ISA and £5k in a new cash ISA.

adamcartney

colsten wrote: »

Easy: don't request transfer any of the current year's funds. You have £30K in the cash ISA, of which £10K was deposited this year, so some £20K is from previous years. As you only want to transfer £4K, you don't have to use any of the funds deposited in the current year.

There are a couple of questions about this and boxes to tick on your transfer form.

Thanks. On the transfer form, next to the box that asks whether you want to make a full or partial transfer, it asks you for the "Tax Year of Subscription". So I should tick the box that says partial transfer and then write 2012/2013 or any previous year?

le_loup

We can guess or you can ask your new provider.