Transfering Cash ISA into Stocks & Shares ISA?

Pincher

Archi_Bald wrote: »

Regarding the latter, I should like to say that I am not sure what you mean by contributing to more than one ISA provider in one tax year but that it is entirely legal to subscribe to both, a cash and an S&S ISA in the same tax year, as long as you keep your total subscription within your allowance for the tax year. I am sure you know what I mean.

Contributing to more than one ISA provider in one year makes it harder to defend against over subscription.

Somebody might contribute to provider A, withdraw, then try it on with provider B because they "changed their mind" about withdrawing.

I assume the system checks against it, because the ISA providers register all current year contributions; but do they?

The banks are supposed to report suspicious transactions and large transfers, for money laundering reasons, but it's only a small percentage that gets looked at, because they haven't got the man power. The reports just sit on a database, just in case. I have never been called by the HMRC for large transfers.

DesG

Pincher wrote: »

I assume the system checks against it, because the ISA providers register all current year contributions; but do they?

The banks are supposed to report suspicious transactions and large transfers, for money laundering reasons, but it's only a small percentage that gets looked at, because they haven't got the man power. The reports just sit on a database, just in case. I have never been called by the HMRC for large transfers.

Of course they do, they report all subscriptions against each NI number each year to HMRC who then chase after anyone who has f'd up.

masonic

Pincher wrote: »

Contributing to more than one ISA provider in one year makes it harder to defend against over subscription.

Somebody might contribute to provider A, withdraw, then try it on with provider B because they "changed their mind" about withdrawing.

I assume the system checks against it, because the ISA providers register all current year contributions; but do they?

You seem to be arguing from a position of ignorance. All ISA managers are required to give details of ISA subscriptions they have collected in an annual return to HMRC. If an individual oversubscribes, or subscribes to an invalid combination of ISAs, then this will be picked up by HMRC when the returns are reconciled and there are well defined procedures for addressing the problem.

Also, it can be valid to "contribute to provider A, withdraw, then try it on with provider B". It is called self-transfer and can be done for one cash ISA per tax year. This would, of course, be visible to HMRC through the annual returns.

Pincher

I did put cash into PEPs for S&S purposes, but I have only paid into cash ISAs, one provider per year.

I assume the providers will look at multiple transfers-in, all saying the money was contributed in 2010 with exasperation.

I think you are saying I could have saved £1,000 EACH with four different Cash ISA providers, and then some more in S&S ISAs, all in 2010, and then try to transfer in and merge them all, and the recipient provider will and should accept them without complaint.

I deliberately keep it extremely simple, because I am afraid of ISA providers refusing to take on over complicated transfers-in, resulting in:

A. Money languishing in old uncompetitive ISAs

B. Forced to redeem ISAs no provider will accept, paying 0.5%.

I also have a fear that Kafkaesque bureaucratic tangle will ensue, because somebody in a back office makes a mistake; but that is nothing to do with any rules, just my fear of crazy admin people.

colsten

I think you should be reading up on how ISA transfers actually work, rather than developing your own theories around ISA transfers. Suffice to say your theories are mostly wrong.