Stocks and Shares ISA to Fixed ISA

sweepsd

Hi

I have a Vanguard Lifestrategy 60 S&S ISA.  It's been pretty flat for a while so I'm thinking of moving to a fixed rate cash ISA.  Not all Fixed Rate ISA allow a transfer in, could I transfer it to an easy access ISA and then to the Fixed rate ISA?  The S&S ISA isn't a new ISA.

TIA

eskbanker

sweepsd said:

Not all Fixed Rate ISA allow a transfer in, could I transfer it to an easy access ISA and then to the Fixed rate ISA?

If you're looking at a fixed rate cash ISA that doesn't allow a transfer in, then going via an easy access one won't circumvent that?

Or did you mean that it specifically doesn't allow a transfer in from a S&S ISA but does allow one from a cash ISA?  If so, then a two-stage transfer should indeed work....

Albermarle

I have a Vanguard Lifestrategy 60 S&S ISA.  It's been pretty flat for a while

In fact like many investments it is down over 21 months by over 10% since the peak near the end of November 2021. But still 15% up over 5 years.

The question of course is now the right time to pull out. Normally when investments are at a low, selling means crystallising the loss and missing out on any upturn. 5% fixed return might do better in the short term but probably not long term.

sweepsd

eskbanker said:

sweepsd said:

Not all Fixed Rate ISA allow a transfer in, could I transfer it to an easy access ISA and then to the Fixed rate ISA?

If you're looking at a fixed rate cash ISA that doesn't allow a transfer in, then going via an easy access one won't circumvent that?

Or did you mean that it specifically doesn't allow a transfer in from a S&S ISA but does allow one from a cash ISA?  If so, then a two-stage transfer should indeed work....

Thanks - yes the second statement is what I meant

basedinhull

I have just moved a Hargreaves Lansdown Stocks ISA to a Nat West fixed Rate cash ISA.  It was just under £20000, 

I had made no payments into the old ISA in the current tax year and want to use my 2023/2024 allowance to pay in an additional £20000.

However, Nat West wont allow me to do this because they say that HL selling the shares in 2023/24 is like making a new payment and uses up the new allowance.

Anyone know the rules here?

Doctor_Who

If you used the official Nat West ISA transfer process then the money never left an ISA wrapper (be it stocks and shares or cash) so I can't see how it can be classed as a new subscription. If you sold the HL S&SISA and withdrew the money to subscribe to the Nat West ISA then that would be a new subscription.

The Gov.uk link below says: You can transfer your savings to a different type of ISA or to the same type of ISA.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa

dunstonh

However, Nat West wont allow me to do this because they say that HL selling the shares in 2023/24 is like making a new payment and uses up the new allowance.

Probably a miscommunication.  If you described it as a transfer it is wrong. You can transfer it.   If you described it as selling the investments to cash then they could interpret that as a new contribution.

Grumps

Hi.

I have a question along similar lines.

I had two cash ISAs languishing in different Banks that were probably old enough to have grown whiskers.

Seeing an offer on MSE I opted to open an account with a new Bank and transferred the monies from one ISA into a Fixed Rate ISA. I then tried to transfer the 2nd ISA but, because of a mishap at the receiving Bank, the monies failed to be received prior to the cut off date.

Serendipity. The Bank where this 2nd ISA was sitting in an Easy Access, then offered (an even better) Fixed Rate ISA. The 2nd ISA went in there.

This is where I get confused. My understanding is that ISA status of the monies is merely a 'wrapper' and because the funds transferred were 'old money', I will not have been deemed to have opened an ISA account in the current Tax year. Both Fixed Rate ISAs are now closed to new funds

Adding to the confusion, I have a Stocks & Shares ISA (again ancient) with Fidelity which is essentially a number of Unit Trusts, a couple of which I wish to 'sell'.

If I open a Four Access ISA account with the Coventry B. S. and nominate (to Fidelity) that account as being to where the realization (of the UT's) be paid, does that keep that money within an ISA 'wrapper'?

eskbanker

Grumps said:

Adding to the confusion, I have a Stocks & Shares ISA (again ancient) with Fidelity which is essentially a number of Unit Trusts, a couple of which I wish to 'sell'.

If I open a Four Access ISA account with the Coventry B. S. and nominate (to Fidelity) that account as being to where the realization (of the UT's) be paid, does that keep that money within an ISA 'wrapper'?

You can only keep it within the ISA wrapper if you instruct Coventry to initiate the transfer - you should be able to specify that the units are sold as part of the transfer or sell them yourself via Fidelity first, but the transfer must be managed from the Coventry end.

However, I don't think Fidelity support partial transfers anyway, so you couldn't just transfer part of your S&S ISA held there....

Grumps

Thanks for the response.

I'll check with Fidelity.

jazzfamily

I have a vanguard life strategy 60 S&S ISA which has recently been switched from another fund as performing better. I have not paid anything into my S&S ISA since investing into about 3 years ago. My question is can I also have a cash ISA which I can pay into? Many thanks