IFISA+ Cash ISA quick question

buyhighselllow

I have withdrawn our holding from a P2P IFISA and wish to put the money in a Cash ISA elsewhere. I think this is allowed in the same tax year isn't it ??

bowlhead99

As long as the total subscriptions made into all your ISAs in the 2018/19 tax year don't go over the annual limit of £20000, you're fine.

So for example you can subscribe (put in from your bank account) £9000 into a IFISA in May 2018, leaving £11000 unused subscription allowance... and then later in January 2019 you could take out £10,000 cash from your IFISA putting the money in your normal bank account. Then in February 2019 you could use the money in your bank account to make a new £10,000 subscription to a Cash ISA, which is fine because it is lower than the £11000 unused subscription allowance that you had left.

Overall, you would have subscribed £19000 into ISAs during the tax year (£9000 in May 18 and £10000 in February 19) which is less than your £20000 allowance, so you're fine.

Alternatively if the money is still in your IFISA and you haven't actually 'withdrawn' from the IFISA to your bank account, only sold the investments or got the proceeds from your loans sitting there as cash inside the IFISA... you can just do a transfer straight from the IFISA to the Cash ISA without going via your bank account

In that case (an ISA to ISA transfer arranged by the cash ISA provider), then it wouldn't matter how much unused subscription allowance you had left, because you won't use a penny of it now, because the money stays inside an ISA at all times and there isn't any cash coming in from the outside world (your bank account) into an ISA.

buyhighselllow

bowlhead99 wrote: »

As long as the total subscriptions made into all your ISAs in the 2018/19 tax year don't go over the annual limit of £20000, you're fine.

So for example you can subscribe (put in from your bank account) £9000 into a IFISA in May 2018, leaving £11000 unused subscription allowance... and then later in January 2019 you could take out £10,000 cash from your IFISA putting the money in your normal bank account. Then in February 2019 you could use the money in your bank account to make a new £10,000 subscription to a Cash ISA, which is fine because it is lower than the £11000 unused subscription allowance that you had left.

Overall, you would have subscribed £19000 into ISAs during the tax year (£9000 in May 18 and £10000 in February 19) which is less than your £20000 allowance, so you're fine.

Alternatively if the money is still in your IFISA and you haven't actually 'withdrawn' from the IFISA to your bank account, only sold the investments or got the proceeds from your loans sitting there as cash inside the IFISA... you can just do a transfer straight from the IFISA to the Cash ISA without going via your bank account

In that case (an ISA to ISA transfer arranged by the cash ISA provider), then it wouldn't matter how much unused subscription allowance you had left, because you won't use a penny of it now, because the money stays inside an ISA at all times and there isn't any cash coming in from the outside world (your bank account) into an ISA.

Still a bit uncertain..

This tax year I have added 2500 to the IFISA.
I have withdrawn 13500 so its now empty

How much can I put into a Cash Isa before April....17500 ?

badger09

There was a question recently from another poster who was trying to transfer, via the new provider's process to preserve ISA status, their IFISA into a Cash ISA. They couldn't find any Cash ISA provider prepared to accept it.

eskbanker

buyhighselllow wrote: »

Still a bit uncertain..

This tax year I have added 2500 to the IFISA.
I have withdrawn 13500 so its now empty

How much can I put into a Cash Isa before April....17500 ?

Yes, provided you haven't funded any ISAs other than the IFISA this tax year.