Mini to Maxi Isa Transfer?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
6 replies 1K views
megglesmeggles Forumite
196 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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?

Replies

  • RayWolfeRayWolfe Forumite
    3K Posts
    Next year there will only be a Cash ISA and a Shares ISA, so the mini/maxi distinction disappears.
  • megglesmeggles Forumite
    196 Posts
    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?
  • MilarkyMilarky Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
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    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.
    .....under construction....
  • megglesmeggles Forumite
    196 Posts
    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).
  • RayWolfeRayWolfe Forumite
    3K Posts
    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!
  • dunstonhdunstonh Forumite
    106.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    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.
    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.
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