Lloyds fixed rate ISA has matured

Bolt1234

I am getting myself confused here.  My fixed rate ISA is maturing in a few weeks.  I would like to use the allowance potentially to offset some of my stocks and shares from tax rather than another Cash ISA.

Am I right in assuming that this years allowance has already been used up and that I cannot cash in this ISA and then set it up another ISA against my stocks and shares portfolio?  

Do I literally need to wait until April 26 to do this?  I don’t want to invest in another Cash ISA to then find myself in the same position half way through a financial year. Could I get a more flexible Cash ISA that would allow me to do this and then in April next year do the stocks and shares.  

Would prefer to stick with Lloyds just because I can then get them to do the transfer.  Come April 26 I can then let my investment company know to shield another £20k

Ch1ll1Phlakes

Ok, looking very simply you should be able to use an ISA transfer to move all or part of the Cash ISA into a stocks & shares ISA. 

I don't know what you mean is this years allowance already used up. If you're thinking you can only open one ISA per year that rule no longer applies and you can now open multiple Cash ISAs per tax-year.

You're a little sparce with info of when and by how much the accounts were funded (don't need exact figures just if it was full 20k allowance or not). If you can provide some more info we can give you more advice. Also is your Cash ISA currently with Lloyds?

Ch1ll1Phlakes

Bolt1234 said:

I am getting myself confused here.  My fixed rate ISA is maturing in a few weeks.  I would like to use the allowance potentially to offset some of my stocks and shares from tax rather than another Cash ISA.

Am I right in assuming that this years allowance has already been used up and that I cannot cash in this ISA and then set it up another ISA against my stocks and shares portfolio?  

Do I literally need to wait until April 26 to do this?  I don’t want to invest in another Cash ISA to then find myself in the same position half way through a financial year. Could I get a more flexible Cash ISA that would allow me to do this and then in April next year do the stocks and shares.  

Would prefer to stick with Lloyds just because I can then get them to do the transfer.  Come April 26 I can then let my investment company know to shield another £20k

Note: having looked at Lloyds they only allow 1 Cash ISA to be funded per tax-year but again it depends when you funded your current Cash ISA

jimjames

Bolt1234 said:

Am I right in assuming that this years allowance has already been used up and that I cannot cash in this ISA and then set it up another ISA against my stocks and shares portfolio?  

This year's allowance is used up if you've added £20k to any kind of ISA since 6 April 2025. If you added money before that date then you haven't used this year's allowance

Bolt1234

I have used the full £20k allowance.  Brought it August 2024 and it’s a 1 year fixed rate with Lloyds.  I want some flexibility.  Should I get a flexible cash ISA until April 26 and then withdraw the £20k and put against my share portfolio? Sorry, I am getting very confused!

Or just take the money NOW and invest until April 26.

Ch1ll1Phlakes

Bolt1234 said:

I have used the full £20k allowance.  Brought it August 2024 and it’s a 1 year fixed rate with Lloyds.  I want some flexibility.  Should I get a flexible cash ISA until April 26 and then withdraw the £20k and put against my share portfolio? Sorry, I am getting very confused!

Or just take the money NOW and invest until April 26.

As the funds in the Cash ISA are from the 24/25 Tax year these can be transferred (after maturity or you pay a penalty) to an ISA without affecting your allowance for 25/26. 

This could be moving all or some of the Cash ISA to a new Cash ISA with Lloyds (as long as you haven't paid into a Cash ISA with them in the 25/26 Tax Year) or moving all or some of the Cash ISA to your stocks and shares ISA.

Just remember once a tax year ends, ISA funds from previous years no longer count towards your ISA subscription limit. But don't just withdraw them use an ISA transfer to move the funds to whatever ISA you now want.

Does this help?

wmb194

Bolt1234 said:

I have used the full £20k allowance.  Brought it August 2024 and it’s a 1 year fixed rate with Lloyds.  I want some flexibility.  Should I get a flexible cash ISA until April 26 and then withdraw the £20k and put against my share portfolio? Sorry, I am getting very confused!

Or just take the money NOW and invest until April 26.

August 2024 is the 24/25 tax year. Have you made a deposit in the current 25/26 tax year? The annual Isa allowance runs by tax years.

Ch1ll1Phlakes

Maybe this will make it clearer.

1. You have 20k in a fixed rate Cash ISA opened in August 2024 (24/25 tax year) and maturing in August 2025 (25/26 tax year).

2. You can transfer ISAs from previous tax-years to other ISAs without affecting your ISA allowance.

3. When your fixed rate ISA matures you can...

4. Transfer your fixed rate Cash ISA to a stocks and shares ISA.

5. OR transfer it to an easy access Cash ISA, allowing you to withdraw funds

I recommend you only use option 5 if the new ISA labelled as a FLEXIBLE Cash ISA as this allows you to withdraw funds and replace them in the same tax year

Bolt1234

Wmb.  Yes I have used this years ISA allowance 25/26 against my stocks and shares portfolio.  

Actually I think I might have answered my own question.  I have already used 25/26. The Lloyds cash ISA was from a previous tax year so presumably I can just take it out.    I won’t be able to re invest in another ISA until April 26.

Ch1ll1Phlakes

Bolt1234 said:

Wmb.  Yes I have used this years ISA allowance 25/26 against my stocks and shares portfolio.  

Actually I think I might have answered my own question.  I have already used 25/26. The Lloyds cash ISA was from a previous tax year so presumably I can just take it out.    I won’t be able to re invest in another ISA until April 26.

Read my last message do not just withdraw the funds from the ISA.

Please transfer them to a new or different ISA account you hold as otherwise you will lose the allowance you have built in previous tax-years

Bolt1234

Ah.  So, the original £20k stays in its tax free wrapper year after year providing you don’t cash it in? Effectively you build up lots of £20k allowances over the years.

It would be ideal if I could just ask the financial advisor to move it across to my stocks and shares portfolio.