Can I keep cash in a stocks and shares ISA and not invest till the next tax year?

BrianGigg

My question is, if I want to set up a stocks and shares ISA before the 5 April 2020 deadline, can I set it up for now with cash, and only choose which stocks and shares to invest in after April 5th? This is because I think markets will continue to drop beyond April 5. Many thanks if you can give answer this.

eskbanker

Yes, if you're quick enough.

Alexland

Depends on the S&S ISA provider as some of the more basic products don't have the concept of an uninvested cash balance. You would be fine to do this with Vanguard Investor.

eskbanker

Alexland said:

Depends on the S&S ISA provider as some of the more basic products don't have the concept of an uninvested cash balance.

Valid observation but do you know of any full-function providers that operate like that?  I'm conscious that the robo-players with the heavily-restricted range of proprietary offerings do, but was taking OP's reference to "choos[ing] which stocks and shares to invest in" at face value....

BrianGigg

Thanks for your feedback, this would be with interactive investor. eskbanker when you say 'if you're quick enough' do you mean quick enough to get the money into the account before the 5th, which is not a problem, or that there is a time limit on how long you can keep cash in a s&s ISA?

Alexland

eskbanker said:

Valid observation but do you know of any full-function providers that operate like that?  I'm conscious that the robo-players with the heavily-restricted range of proprietary offerings do, but was taking OP's reference to "choos[ing] which stocks and shares to invest in" at face value....

I didn't think that was clear enough to be certain they were going to go with a full-function DIY platform so just wanted to make them aware of the possibility that some basic S&S ISA products don't have a cash balance facility. Obviously now we know it's Interactive Investor then yes they do have a cash balance so it would be fine.

BrianGigg said:

Thanks for your feedback, this would be with interactive investor. eskbanker when you say 'if you're quick enough' do you mean quick enough to get the money into the account before the 5th, which is not a problem, or that there is a time limit on how long you can keep cash in a s&s ISA?

Under the ISA Manager guidance provided you instruct them to make the contribution before the end of the tax year on the 5th April and the eventual bank collection is under the control of the ISA Manager then it should be fine.

However we have seen with MoneyBox they have chosen to treat ISA contribution instructions placed this week as occurring in next tax year as there is a small delay before their collection. So it's worth checking II's position on tax year deadlines if you want to be certain they will report your contribution as occurring in this tax year. There is no limit to how long you can operate an uninvested cash balance in the S&S ISA.

BrianGigg

Thanks very much for your help, much appreciated!