cash isa transfer to stocks and shares isa

d63

i am aiming to open an iweb stocks and shares isa before their entrance fee increases next year. i have not yet used any of this years 2020/21 isa allowance and what with the current low cash isa interest rates i am pondering putting the full £20k into one of the vanguard lifestrategy funds and/or an hsbc global fund. my question then is, if i do pay in £20k of new money, would the isa transfer rules permit any further money be added from an old (virgin) cash isa into this new s&s isa, or must i wait until the new financial year?

eskbanker

Money from previous years' contributions can be transferred around between ISAs to your heart's content without affecting, or being affected by, current year restrictions, so yes, you can fund a S&S ISA with £20K and also transfer in money from another ISA, as long as you use the new provider's ISA transfer process.

d63

eskbanker said:

Money from previous years' contributions can be transferred around between ISAs to your heart's content without affecting, or being affected by, current year restrictions, so yes, you can fund a S&S ISA with £20K and also transfer in money from another ISA, as long as you use the new provider's ISA transfer process.

much obliged for your answer. i dare say you are fair driven to madness at how often much the same  query as mine comes up, but tho, i think, i am fairly sure how old and new money works for ordinary cash isa transfers, this will be my first foray into a stocks and shares isa and i was not entirely sure of the transfer rules for that. thank you!

wiseonesomeofthetime

Related to iWeb and S&S ISA, does anyone know whether you can invest £10k in LS40 and £10k in LS60 within the same S&S ISA, or would they be classed as two ISAs which I believe you cannot have please?

My hope is that the S&S ISA is the wrapper, and the two LS are just components of the same, single S&S ISA.

eskbanker

wiseonesomeofthetime said:

Related to iWeb and S&S ISA, does anyone know whether you can invest £10k in LS40 and £10k in LS60 within the same S&S ISA, or would they be classed as two ISAs which I believe you cannot have please?

My hope is that the S&S ISA is the wrapper, and the two LS are just components of the same, single S&S ISA.

As you say, the ISA is the wrapper, within which you buy specific investments, such as VLS 40 or 60, so the annual contribution limit relates to how much can be paid into the wrapper from outside of it, and once the money is in there you can do what you like with it.

wiseonesomeofthetime

Brilliant. Thank you @eskbanker

Thought about opening the iWeb S&S ISA account now, in preparation for next tax year, however, this T&C (20.47b) would seem to deem it inadvisable as they could close it anyway before then, as I cannot fund it with anything in 20/21:

eskbanker

wiseonesomeofthetime said:

Thought about opening the iWeb S&S ISA account now, in preparation for next tax year, however, this T&C (20.47b) would seem to deem it inadvisable as they could close it anyway before then, as I cannot fund it with anything in 20/21

If you've paid into another S&S ISA already in 2020/21, can't you transfer either all of that contribution or some prior year ISA money into IWeb, if you're trying to get up and running with them before the fee rise?

wiseonesomeofthetime

I have paid NIL into a S&S ISA in 20/21, but £20k in to a fixed term cash ISA, so alas have no allowance remaining and cannot touch the cash ISA until it matures in April 2021.

All of my ISA deposits are locked in that fixed term ISA.

eskbanker

Right - if you're trying to get into IWeb before they put their opening charge up (otherwise why the rush?), then bear in mind that it's only applicable to the first account you open with them, so you can just open a general investment account for now (no restrictions on funding) and an ISA later on at your convenience....

wiseonesomeofthetime

That's what I have done @eskbanker , so I shall just sit back and wait until April now then.

Thanks again.

Alexland

Probably worth making a minimum contribution into the iWeb general account to ensure they don't close it as inactive for a few months.