Maxi ISA - Cash & Shares

Neenan

Hi
I currently have a Maxi ISA which is made up of cash and shares however i would like to transfer this from the exisitng company. However what i want to know is, can the Maxi which is made up of cash and shares be transformed into just a cash ISA?
Any help is appreciated as im very new to ISAs.

Many thanks
Mark

jem16

From April 2008 you will be able to transfer cash into shares.

However as far as I know you cannot transfer shares into cash.

Neenan

Does this mean it has to stay as a cash & shares Maxi ISA as i wouldnt want to convert the cash into shares? Rather just convert the shares into cash.

jem16

Yes it does.

SirSaveALot_2

Neenan wrote: »

Does this mean it has to stay as a cash & shares Maxi ISA as i wouldnt want to convert the cash into shares? Rather just convert the shares into cash.

Hi there

This is my understanding of the current rules:

The cash part can be transfered to a Cash Isa. If the cash was added in a previous tax year, you can transfer it in full immediately. If it was added in this tax year, you cannot transfer it into a mini cash ISA until next tax year. The current rules are described in the ISA FAQ http://forums.moneysavingexpert.com/showpost.html?p=1405182&postcount=16

You can't transfer the stocks and shares into a Cash ISA. You could sell the investments and take the value out, losing ISA benefits. You could sell the investments and keep cash in the stocks and shares ISA, which would be taxed but you could re-invest the money in stocks and shares tax free in the future. Or you could try to find a "cash-like" stocks and shares ISA fund. I don't know much about this topic, but see http://forums.moneysavingexpert.com/showthread.html?t=705089 for a recent discussion.

Are you sure that selling the investments while prices are low is the best idea? It depends if (a) you now think you should not be in stocks and shares at all (b) you think you have flawed investment products, rather than just the current market conditions (c) you need the money now, or before you think prices will recover.

Hope this helps
SirSaveALot

SirSaveALot_2

Hi

I forgot to say - just in case you don't know already - make sure you follow the correct procedure for transfering. Open the new account and get the new account provider to carry out a transfer. Don't just withdraw the money and add it to another ISA. Otherwise, you will lose the tax-free advantages of ISAs on that money.

Mikeyorks

Neenan wrote: »

However what i want to know is, can the Maxi which is made up of cash and shares be transformed into just a cash ISA?

As other responses Mark - you can't do that. Your basic 'transfer' options from HMRC guidance :-

The component parts of the ISA always retain their identity after transfer: transfers are not permitted between the components of an ISA. However, the designation of an ISA as a maxi or mini is important only for transfer of current year subscriptions.
For example, current year subscriptions to the stocks and shares component of a maxi ISA can only be transferred to the stocks and shares component of another maxi ISA. However, previous years’ subscriptions to the stocks and shares component of a maxi ISA can be transferred to the stocks and shares component of a maxi ISA, or to a stocks and shares mini ISA.
Similarly, current year subscriptions to a cash mini ISA can only be transferred to another cash mini ISA. However, previous years’ subscriptions to a cash mini ISA can be transferred to another cash mini ISA, the cash component of a maxi ISA, or even to an account that had been opened as a TESSA-only ISA.

Neenan

Folks really appreciate the advice