APS ISA question.

Albermarle

I am very keen not to stray into the realms of having to fill in tax forms for HMRC hence, the desire to keep things tax free where possible

That is understandable, although just for savings interest, you would not have to fill out a tax return. Hopefully getting the APS sorted out will not be more difficult that dealing with HMRC !

Yes, I am aware of the £1000 tax free interest allowance

Many posters are not, so always worth mentioning it .

drael

Hello.  I'm new to this formum but feeling quite desperate for information.  I am an elderly widow who knows little about finances!  My late husband left me a stocks and shares isa that is held by an investment firm. I have dual USA/UK citizen and, thus, have to file tax reports in both countries.  The USA tax on expat foreign investments - like ISAs - is punishing:  my tax rreturn was 96 pages long, because a form was required for every company with whom the firm was invested, and the tax return cost $3200 to have it prepared.  Obviously, I would like to transfer the stocks and shares ISA into a cash ISA.  The investment firm has told me that my best option is to encash the stocks and shares ISA and have the funds sent to my personal bank account and then to purchase a cash ISA, using my APS allowance.  I've tried my own building society and some other cash ISA providers, and they don't accept APS ISAs.  Some banks, though, have said I should not allow the money to be put into my bank account, and have the funds transferred directly from the investment firm - but the firm does not transfer ISAs in this way.   Can anyone help clarify this for me, please?  Thank you so much!

masonic

drael said:

Hello.  I'm new to this formum but feeling quite desperate for information.  I am an elderly widow who knows little about finances!  My late husband left me a stocks and shares isa that is held by an investment firm. I have dual USA/UK citizen and, thus, have to file tax reports in both countries.  The USA tax on expat foreign investments - like ISAs - is punishing:  my tax rreturn was 96 pages long, because a form was required for every company with whom the firm was invested, and the tax return cost $3200 to have it prepared.  Obviously, I would like to transfer the stocks and shares ISA into a cash ISA.  The investment firm has told me that my best option is to encash the stocks and shares ISA and have the funds sent to my personal bank account and then to purchase a cash ISA, using my APS allowance.  I've tried my own building society and some other cash ISA providers, and they don't accept APS ISAs.  Some banks, though, have said I should not allow the money to be put into my bank account, and have the funds transferred directly from the investment firm - but the firm does not transfer ISAs in this way.   Can anyone help clarify this for me, please?  Thank you so much!

No that's not correct in reference to an APS. This can safely be paid out to your current account and the APS can be used at your leisure. It is not the same as transferring an ISA. You should locate a suitable cash ISA that will accept the APS first, as holding USA citizenship could close off some avenues. Once you know you have somewhere to put it, you can get the money paid to you. The APS will need to be registered with the provider you wish to use it with, and that will allow you to deposit up to the value of the APS with that provider without affecting your normal ISA allowance.