Transferring from flexible cash ISA to S&S ISA 15 January at 10:10PM in ISAs & tax-free savings 3 replies 94 views

Expotter

I have a flexible cash ISA with £20k plus interest made up of this current tax year subscriptions.
I now want to open a S&S ISA, could anyone tell me whether it's allowed to do a self transfer, i.e withdraw from the cash ISA and then open a S&S ISA and deposit the money or do I have to request a transfer by my new S&S ISA from the cash ISA?

FatherTireseus

DON'T WITHDRAW IT!  Sorry for the caps but if you withdraw it you lose the ISA status.

To retain the ISA status and tax advantages you'll have to request the transfer with the new provider, to transfer the money from the cash ISA.

masonic

Yes. you can flexibly withdraw the current tax year subscriptions and pay them into your S&S ISA. Flexibly withdrawn subscriptions can be replaced in an ISA of a different type without issue. However, you would lose ISA status on any interest you withdraw (you can only pay a maximum of £20k into the S&S ISA). This may or may not be a concern for you. If you are not transferring the full £20k, then self-transfer would be the only way to do it before the end of this tax year as you cannot request the partial transfer of a current year ISA.

jimjames

FatherTireseus said:

DON'T WITHDRAW IT!  Sorry for the caps but if you withdraw it you lose the ISA status.

That might have been true originally but the OP has specifically said they have a flexible ISA where this is permitted so it's not true to say that withdrawing will lose ISA status.

@Expotter you can do this as you have a flexible cash ISA, removing the money will be as if the cash ISA never existed