Moving to Cash within Peps & ISAs

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 709 views
PrimrosePrimrose Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I know there is a facility to temporarily hold a new ISA investment in cash while you decid which fund/s you want to invest in (subject to certain tax being paid of any interest gained) but can anybody please tell me whether there is anything specific in the Revenue's rules which says you cannot convert an existing PEP or ISA holding into cash and still hold it within the tax-free wrapper for an indefinite period of time, before moving back into shares or unit trusts again.

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  • debbie42debbie42 Forumite
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    At the moment, the cash and shares ISAs are independent.
    The issue with cash in a S&S ISA is very woolly, and has been discussed at length here and on the Motley Fool.

    Basically, you can hold cash in your S&S ISA as long as you intend to buy shares with it. The interest you get on the cash may not be brilliant, depending on your provider.

    I'll see if I can find the links to recent discussions.
    Debbie
  • dunstonhdunstonh Forumite
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    it used to be a temporary thing with cash but it is no longer the case. However, not all providers have a cash option and some do not offer it as a long term option and its more their own doing if they limit periods. However, there are providers out there that do not have restrictions.
    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.
  • JM_2JM_2 Forumite
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    Primrose wrote: »
    I know there is a facility to temporarily hold a new ISA investment in cash while you decid which fund/s you want to invest in (subject to certain tax being paid of any interest gained) but can anybody please tell me whether there is anything specific in the Revenue's rules which says you cannot convert an existing PEP or ISA holding into cash and still hold it within the tax-free wrapper for an indefinite period of time, before moving back into shares or unit trusts again.


    Hi,

    Do you have a self select ISA ?

    This thread may be of interest :

    http://forums.moneysavingexpert.com/showthread.html?t=455572

    JM_2
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