ISA Rules Question

Marknet

I have a number of Stocks & Shares ISAs going back many years, some not doing too great in the current climate, and therefore considering transferring some to Fixed Rate Cash ISAs and take advantage of current rates in the market.

 

I know that if I transferred a previous year's ISA balance (e.g. from a 2012-13 allowance) to a new provider then it doesn't count against this year’s allowance and that I could do this with other previous year’s ISAs also.

 

What I don't know, and am having trouble identifying, is if that money once with the new provider is still flagged as the previous years allowance (e.g. 2012-13) or does it loose that status.

 

Reason for seeking clarity is to try to understand my options post that initial transfer and indeed how options in general work regarding transfers in the future.

 

My primary question is therefore, if I transferred a 2012-13 ISA (or any other year) to a 12M Cash ISA then at the end of that term could I then transfer that money to another ISA and it still retain its previous years allowance?

 

Secondary question being that if these various ‘pots’ of ISA allowances built up over the years do retain specific pervious years status (i.e. the seeding year at the outset), then does this mean switching ISA balances between providers to take advantage of market conditions is viable (obviously taking into account any exit charges providers may have).?

 

 

eskbanker

ISA money is effectively differentiated by providers simply as being either current year money or prior year money, and you can repeatedly do what you like with the latter....

dunstonh

 some not doing too great in the current climate,

What is your definition of current?
2022 was negative but the low point was October 2022.  Since then values have been going back up again.     2023 is positive for most people and could well be beating cash savings rates (depends on your risk profile)

Albermarle

I have a number of Stocks & Shares ISAs going back many years, some not doing too great in the current climate,

To be clear, S&S ISA's themselves do not perform. It is the investments you hold within them.

If some have a restricted range of investments and/or high charges, it could be worth consolidating your S&S ISA's to just one or two as part of the current exercise.

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Marknet

dunstonh said:

 some not doing too great in the current climate,

What is your definition of current?
2022 was negative but the low point was October 2022.  Since then values have been going back up again.     2023 is positive for most people and could well be beating cash savings rates (depends on your risk profile)

Current as in recent months and potential in the coming months, and in consideration of rates currently available for guaranteed rates on some Cash ISA.

 

I'd agree that rates, in general, are slowly going up but not by the same levels as Cash at this time.

Marknet

Albermarle said:

To be clear, S&S ISA's themselves do not perform. It is the investments you hold within them.

If some have a restricted range of investments and/or high charges, it could be worth consolidating your S&S ISA's to just one or two as part of the current exercise.

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Thanks,

It was really a question on transfer possibilities and rules, which I was asking.

I'm aware it's the underlying investments in the ISA wrapper which drives the value.

Maybe an option to consolidate S&S ISAs, but that would depend on charges etc. but at the moment very few S&S options are matching the guaranteed rates for Cash ISAs.

Hence why I was asking for some clarity on rules regarding transferring ISAs.

jimjames

Albermarle said:

I have a number of Stocks & Shares ISAs going back many years, some not doing too great in the current climate,

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Presumably when the market has risen and current situation has improved

jimjames

Marknet said:

Albermarle said:

To be clear, S&S ISA's themselves do not perform. It is the investments you hold within them.

If some have a restricted range of investments and/or high charges, it could be worth consolidating your S&S ISA's to just one or two as part of the current exercise.

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Maybe an option to consolidate S&S ISAs, but that would depend on charges etc. but at the moment very few S&S options are matching the guaranteed rates for Cash ISAs.

No S&S options will match a guaranteed cash interest rate, that's not how they work. Over the long term they should beat cash which you should've seen if you've held them for many years. That situation shouldn't change just because one year isn't so great.

Marknet

jimjames said:

Marknet said:

Albermarle said:

To be clear, S&S ISA's themselves do not perform. It is the investments you hold within them.

If some have a restricted range of investments and/or high charges, it could be worth consolidating your S&S ISA's to just one or two as part of the current exercise.

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Maybe an option to consolidate S&S ISAs, but that would depend on charges etc. but at the moment very few S&S options are matching the guaranteed rates for Cash ISAs.

No S&S options will match a guaranteed cash interest rate, that's not how they work. Over the long term they should beat cash which you should've seen if you've held them for many years. That situation shouldn't change just because one year isn't so great.

I wasn't really looking for advice on the pros and cons of S&S vs Cash ISAs. I was asking about options to move ISA funds around and if they retain their previous years allowances, which I believe I now have.

In regard to S&S ISAs (even ex PEPs) I have several, dating from the mid 90's to 2022 across different providers, and have a record of the quarterly performance for each throughout their lifetimes. S&S has historically outperformed Cash deposits, which is why I have remained invested. But times have changed and currently Cash rates now offer good value, without risk, at levels not seen for a long time so I have already started to transfer the weaker performing funds into Cash ISAs to take advantage of the rates today. If in the future this situation changes then I will look for the best options at that time.

.

dunstonh

I wasn't really looking for advice on the pros and cons of S&S vs Cash ISAs.

But it appears you don't really understand it.   Hence why the comments are being made.

n regard to S&S ISAs (even ex PEPs) I have several, dating from the mid 90's to 2022 across different providers, and have a record of the quarterly performance for each throughout their lifetimes.

An economic cycle is around 15 years.  Quarterly returns are pointless.

S&S has historically outperformed Cash deposits, which is why I have remained invested. But times have changed and currently Cash rates now offer good value, without risk, 

For the defensive part of your portfolio, that would be the case but for the equity part, it doesn't make sense.

bundoran

Marknet said:

jimjames said:

Marknet said:

Albermarle said:

To be clear, S&S ISA's themselves do not perform. It is the investments you hold within them.

If some have a restricted range of investments and/or high charges, it could be worth consolidating your S&S ISA's to just one or two as part of the current exercise.

It would also maybe make it easier if you decide to transfer back from CASH ISA to S& S ISA at some point.

Maybe an option to consolidate S&S ISAs, but that would depend on charges etc. but at the moment very few S&S options are matching the guaranteed rates for Cash ISAs.

No S&S options will match a guaranteed cash interest rate, that's not how they work. Over the long term they should beat cash which you should've seen if you've held them for many years. That situation shouldn't change just because one year isn't so great.

But times have changed .......

This is a variant of "but it's different this time".

It never is.