Cash ISA to S&S ISA

edited 3 February at 3:19PM in ISAs & Tax-free Savings
4 replies 134 views
LangtangLangtang Forumite
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edited 3 February at 3:19PM in ISAs & Tax-free Savings
We will be inheriting c2500 US (CVX) shares soon, which are being held by Redmayne Bentley and none of which are in any kind of tax efficient wrapper. I would, eventually, like to put all of these into a (few) S&S ISAs.

At present we have a few cash ISAs. Is it possible to convert 2 (or more?) of these cash ISAs into S&S ISAs and to buy the US shares with the cash contents? If we can do that, can we then use this year allowance to add more CVX shares to these ISAs? We have not used any of our £20k allowance this year.

On a slightly tangential note, is there any way that the unwrapped shares can be put into a wrapper without first selling them?. Someone on here did say before that it couldn't be done, it had to be bed & ISA, but just wanted to double check.
It'll be alright in the end. If it's not alright, it's not the end....

Replies

  • edited 28 January at 4:44PM
    eskbankereskbanker Forumite
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    edited 28 January at 4:44PM
    Langtang said:
    At present we have a few cash ISAs. Is it possible to convert 2 (or more?) of these cash ISAs into S&S ISAs
    You can't convert a cash ISA to a S&S ISA as such, but you can open a S&S ISA and transfer the contents of a cash ISA into it, using the new provider's transfer process.

    Langtang said:
    ....and to buy the US shares with the cash contents?
    You can do this if the chosen S&S ISA platform offers those shares, so check first if that's what you have in mind.

    Langtang said:
    If we can do that, can we then use this year allowance to add more CVX shares to these ISAs? We have not used any of our £20k allowance this year.
    Yes, again if US share purchases are supported by the platform, remembering of course that you can only pay new money into one S&S ISA in any tax year.

    Langtang said:
    On a slightly tangential note, is their any way that the unwrapped shares can be put into a wrapper without firs selling the unwrapped ones. Someone on here did say before that it couldn't be done, it had to be bed & ISA, but just wanted to double check.
    It does need to be a sale (unwrapped) and repurchase (wrapped), which is basically what Bed & ISA is.
  • LangtangLangtang Forumite
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    eskbanker said:
    Langtang said:
    At present we have a few cash ISAs. Is it possible to convert 2 (or more?) of these cash ISAs into S&S ISAs
    You can't convert a cash ISA to a S&S ISA as such, but you can open a S&S ISA and transfer the contents of a cash ISA into it, using the new provider's transfer process.
    Thanks very much for your reply and help. Can I leave a little money in the ISA or do I have to transfer all the cash and open a new one?

    eskbanker said:
    Langtang said:
    ....and to buy the US shares with the cash contents?
    You can do this if the chosen S&S ISA platform offers those shares, so check first if that's what you have in mind.
    Checking Hargreaves Landsdown website, I see they do US share in an ISA. I haven't read further, but I would assume that they would offer any US shares that are listed on the Dow? (Chevron specifically)

    Also, I would need to speak to Redmayne Bentley, I would assume that buying them this way would be cheaper that getting someone to look after them for you? I see HL charge £11.95 dealing fee and 0.45% or max £45 annual management charge. That equates to a little under a share per year in costs. I assume that is a standard(ish) charge?
    It'll be alright in the end. If it's not alright, it's not the end....
  • eskbankereskbanker Forumite
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    Langtang said:
    eskbanker said:
    Langtang said:
    At present we have a few cash ISAs. Is it possible to convert 2 (or more?) of these cash ISAs into S&S ISAs
    You can't convert a cash ISA to a S&S ISA as such, but you can open a S&S ISA and transfer the contents of a cash ISA into it, using the new provider's transfer process.
    Thanks very much for your reply and help. Can I leave a little money in the ISA or do I have to transfer all the cash and open a new one?
    Partial ISA transfers are possible in principle, but not all pairs of providers support these so you'll need to check for the permutations you have in mind.

    Langtang said:
    eskbanker said:
    Langtang said:
    ....and to buy the US shares with the cash contents?
    You can do this if the chosen S&S ISA platform offers those shares, so check first if that's what you have in mind.
    Checking Hargreaves Landsdown website, I see they do US share in an ISA. I haven't read further, but I would assume that they would offer any US shares that are listed on the Dow? (Chevron specifically)
    Best not assume, so keep checking, now you've found where to look!

    Langtang said:
    Also, I would need to speak to Redmayne Bentley, I would assume that buying them this way would be cheaper that getting someone to look after them for you?
    Not sure what this means, perhaps worth clarifying....

    Langtang said:
    I see HL charge £11.95 dealing fee and 0.45% or max £45 annual management charge. That equates to a little under a share per year in costs. I assume that is a standard(ish) charge?
    No, charging models and values vary considerably across S&S ISA providers.  There are comparison sites via which you can identify comparative costs for your proposed investment profile:
  • LangtangLangtang Forumite
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    eskbanker said:
    Thanks very much for your reply and help. Can I leave a little money in the ISA or do I have to transfer all the cash and open a new one?
    Partial ISA transfers are possible in principle, but not all pairs of providers support these so you'll need to check for the permutations you have in mind
    Have just realised that my bank, HBOS, do s&s ISAs, so will probably go with them as they already have my cash ones.

    eskbanker said:
    Langtang said:
    Also, I would need to speak to Redmayne Bentley, I would assume that buying them this way would be cheaper that getting someone to look after them for you?
    Not sure what this means, perhaps worth clarifying....
    The shares are held at present by a company called RB, so I was going to check with them to see if their fees are lower or higher than HL or HBOS. 

    I see HL charge £11.95 dealing fee and 0.45% or max £45 annual management charge. That equates to a little under a share per year in costs. I assume that is a standard(ish) charge?
    No, charging models and values vary considerably across S&S ISA providers.  There are comparison sites via which you can identify comparative costs for your proposed investment profile:
    Excellent links, thank you very much. I assume (that word again) that cheap doesn’t always mean cheerful. 
    It'll be alright in the end. If it's not alright, it's not the end....
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