Mini to Maxi Isa Transfer? 31 July 2007 at 8:48AM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 6 replies 1K views

meggles

for the 2006-2007 tax year the boy currently has:

£3000 into Barclay's Mini Cash Isa
£5000 into Fidelity Mini S&S Isa (£1000 from 2005-06).

He wants to move this to H&L ISA. However, starting next year (2007-08), he wants to have a single Maxi S&S Isa.

Questions-

1- Can he transfer his Fidelity Mini S&S Isa into a H&L Mini S&S Isa now, and then switch to a Maxi S&S Isa on 6-Apr-08?

See what I'm getting at?

RayWolfe

Next year there will only be a Cash ISA and a Shares ISA, so the mini/maxi distinction disappears.

meggles

so if he trasfers this to a H&L Mini S&S ISA now... come 6-April-08 it will "become" simply a S&S Isa. Able to put up to £7,000 in each year? (as long as he doesn't put any new money in his cash isa in the same tax year?)

another question-

automatic re-investment of income vs paid out income.

when i trade in the US (i'm a US citizen), i always check the paid out income option. this is because automatic re-investment messes up my taxes considerably (capital gains tricky to calculate if you don't know date of purchase/sales, etc) however, in a tax-free income wrapper such as an ISA, this doesn't matter, correct? so automatic re-investment is the SIMPLIEST way of keeping the £ in the ISA. do i have that correct?

Milarky

meggles wrote: »

so if he transfers this to a H&L Mini S&S ISA now... come 6-April-08 it will "become" simply a S&S Isa. Able to put up to £7,000 in each year? (as long as he doesn't put any new money in his cash isa in the same tax year?)

This bit in bold wrong - it will be more straightforward. Because the 'maxi' vehicle is going, it will no longer be 'one account excludes another'. If you subscribe to this ISA in 2008/09 - by less than the new allowance of £7200 (£6000 say) any difference can be subscribed into a cash ISA (in this case £1200). Conversely, if you open/subscribe to a new cash ISA first (say £1) then the difference between this and the allowance of £7200 (i.e. £7199) is still subscribe-able to the equity ISA of your chose. The new cash ISA limit is £3600 (up from £3000) by the way.

meggles

thanks for the clarification!

so... in 2007-2008 he will have to self-regulate himself so that he puts away a max of £7200. He can determine the ratio of S&S to Cash. (as long as the cash portion is not more than £3600).

RayWolfe

meggles wrote: »

automatic re-investment of income vs paid out income.

when i trade in the US (i'm a US citizen), i always check the paid out income option. this is because automatic re-investment messes up my taxes considerably (capital gains tricky to calculate if you don't know date of purchase/sales, etc) however, in a tax-free income wrapper such as an ISA, this doesn't matter, correct? so automatic re-investment is the SIMPLIEST way of keeping the £ in the ISA. do i have that correct?

Yep. Your understanding is correct. Our tax reporting on dividends reinvested is a complex as yours but in an ISA ... no need to report a thing!

dunstonh

Past years lose the distinction between mini and maxi. Although some providers still call them by what they are.

For example, some providers only set up MAXIs but will accept transfers from what were MINI isas because it doesnt matter once the tax year has ended.

MINI/MAXI only applies to current tax year.