Mini-shares ISA: if/when to close if want to invest in mini-cash??

mountainlioness

Dear All

Am posting on behalf of Mr Lion, who currently has £3k in what looks like a mini-shares ISA with Legal and General.

He now want us to pay all his monthly isa money (we both save a sum from our salaries into isas) into a mini-cash e-isa.

Although I've read the FAQ and understand that shares must remain shares and cash, cash, (so we can't transfer in from his L&G to a new cash-isa I am assuming) can we close the L&G and still be allowed to open a new cash-isa this year?

If we can't, when can we close it? Would it have to wait until the end of this tax year if we've made deposits?

Or does it make sense just to leave the 3k where it is, make no further deposits and just open a new cash-isa to run alongside?

Please help! We're both a bit confused!

Thanks

ML (for Mr ML)

RayWolfe

Provided you haven't started a MAXI stocks and shares ISA this year (since 6th April) you may start a cash ISA with up to £3,000 now.
What you do with your S&S ISA is entirely up to you; keep it, sell it, now or later.

mountainlioness

Thanks Ray - so no restrictions at all on the S&S? We can close without any impact on the cash allowance?

RayWolfe

That's right. They are unconnected.

mountainlioness

Brilliant - thanks - that's why I love these forums

nrsql

You can leave the S&S isa and start a cash isa - max £3000 by end of tax year.
You can sell the S&S isa and put up to £3000 into a cash isa
You can sell part of the S&S isa and put up to £3000 into a cash isa

What you can't do is add more than £4000 to the S&S or £3000 to the cash isa in the tax year, independent of withdrawals.

So you Have 3k in the S&S isa - you can add another £1k max even if you sell all of the £3k.