Bed and Isa S&S Query

movingon

Please could someone clarify that this is ok?

I opened a S&S Isa and subscribed fully  for 2021-22 with Vanguard and opened a General account at the same time.
For 22-23 I fully Subscribed to a cash ISA with Virgin, so have used up my allowance for this year. 
Earlier this year I moved my S&S Isa from Vanguard to IWeb, which has left the ISA account in place at Vanguard with a zero balance. 
I now want to move my general funds into an ISA .

1) I understand I have to sell the funds in the general account and they will then move to cash. Can I then put the funds in the existing ISA in my account now ,because that relates to 2021-22, or do I have to wait until April 6th this year?
2) Are there any cost implications to only moving part of the cash to the ISA and putting £2880 of it into my existing Vanguard SIPP?
TIA

Albermarle

You have used up your £20K allowance for new money going into an ISA for 22/23.
Moving money from GIA to and ISA is the same as adding new money, so you will have to wait until 23/24 starts.

Adding money to a SIPP is a completely separate issue.

movingon

Thanks
I know I can't put the money into the Sipp until the new financial year, but its ok to use the GIA money to do that?
Also I thought that Bed and ISa involved moving your general account funds into an existing ISA?

eskbanker

movingon said:

1) I understand I have to sell the funds in the general account and they will then move to cash. Can I then put the funds in the existing ISA in my account now ,because that relates to 2021-22, or do I have to wait until April 6th this year?

movingon said:

Also I thought that Bed and ISa involved moving your general account funds into an existing ISA?

There isn't a concept of having an ISA per tax year, what's measured is contributions to any ISA in each tax year, so if you've already used your 2022/23 contribution allowance, you can't pay into any ISA until 2023/24, regardless of the year in which the ISA was opened.

movingon said:

I know I can't put the money into the Sipp until the new financial year, but its ok to use the GIA money to do that?

Yes, GIAs have no specific status, unlike the ISA and SIPP tax wrappers, which are governed by well-defined rules.

movingon

Thank you for taking the time to explain. I understand now.