ISA Allowance - Question

chutuk

Hi All,

Hopefully a quick and easy question for those in the know about ISAs.

I've currently got a Cash ISA that I've paid the maximum in to for the 16/17 tax year. Is it possible to withdraw some of this and invest it in a stocks and shares ISA instead?

I don't really want to mess about with transfers, I ideally just want to move £10k from my cash ISA to a new stocks and shares ISA before next years allowance commences.

Thanks for any advice.

Linton

No you cant exceed the £15240 deposit limit. And if you transfer in the current year it has to be the whole £15240. "Flexible ISAs" allow you to take money out and put it back in later, but it has to be back into the same ISA.

chutuk

Linton wrote: »

No you cant exceed the £15240 deposit limit. And if you transfer in the current year it has to be the whole £15240. "Flexible ISAs" allow you to take money out and put it back in later, but it has to be back into the same ISA.

Thanks! Not the answer I wanted but thanks all the same :-)

If I transfer is it just the current years balance that has to be transferred in full? I.e Can I keep investments from previous years in the same cash ISA?

Linton

Sorry I may be wrong! I looks like it may work if both your Cash ISA and your S&S ISA are "flexible". See here. Flexibility seems to have made life more complicated than it was.

badger09

chutuk wrote: »

Thanks! Not the answer I wanted but thanks all the same :-)

If I transfer is it just the current years balance that has to be transferred in full? I.e Can I keep investments from previous years in the same cash ISA?

Yes you can. It is only current year's subscriptions which must be kept together.

If you're prepared to wait until 6th April, you'll have a new ISA subscription allowance of £20k. You would also then be able to transfer as much, or as little of your existing (ie up to & including 2016/17 subscriptions) Cash ISA balance into a S&S ISA.

badger09

Linton wrote: »

Sorry I may be wrong! I looks like it may work if both your Cash ISA and your S&S ISA are "flexible". See here. Flexibility seems to have made life more complicated than it was.

Very unlikely though?

ColdIron

Charles Stanley Direct do Flexible ISAs now, not sure about the rest