Tradingn212 ISA moving between Cash and S&S ISA's

sgx2000

I put 10k into a cash isa with t212 last year.

This year I added a further 20k.

Then I moved the 30k from the cash isa into a t212 s&s isa.

Its now worth 33k.

Can I move the whole 33k back into the cash isa without tax inssues???

Or what?

Ayr_Rage

You'll have to sell your investments but then you should be able to move the funds to the cash ISA.

However if you enable interest on uninvested cash within the S&S ISA it will earn 4.05% tax free, some is placed in QMMFs as well as banks.

Interest is paid daily.

The cash ISA is only returning 3.85%

How long T212 will allow you to stay in cash only within the S&S ISA is unknown, you may get a "warning"

I did the same trick with their INVEST platform, using the uninvested cash as a pseudo instant access account but eventually got a reminder from T212 about how the account should be run.

If the funds remain in ISAs, no tax implications.

clairec666

Yes, you can transfer back to the cash ISA, and everything will still remain tax-tree. Just because your ISA has increased in value, it doesn't mean you have breached the £20000 limit for this tax year.

Whether you would want to transfer back to the cash ISA is a different matter. You might be better off keeping it invested, or keeping it as cash in the S&S ISA.

sgx2000

Many thanks for the replies....

So.....  The whole £32k   (original 30k from cash isa and now 2k interest) can be held in cash in my s&s cash account??? 
And wont look to hmrc like i have just exceeded my 20k allowance?

My 30k has increased br 2.5k in 5 months.......
Seems far too fast and unsustainable a gain to me.....!

Am I wrong???

PixelPound

sgx2000 said:

Many thanks for the replies....

So.....  The whole £32k   (original 30k from cash isa and now 2k interest) can be held in cash in my s&s cash account??? 
And wont look to hmrc like i have just exceeded my 20k allowance?

My 30k has increased br 2.5k in 5 months.......
Seems far too fast and unsustainable a gain to me.....!

Am I wrong???

Well the market could go higher and you get more, or it could correct and the value drops. However taking it now does seal in the gains. 

So long as you only put in £20K to ISA (as a whole) it's fine. Moving between ISA's whether with T212 or to a different provider keeps the tax free wrapper. There are some people who have had ISA's and their predecessor and now have over £million.

clairec666

sgx2000 said:

My 30k has increased br 2.5k in 5 months.......
Seems far too fast and unsustainable a gain to me.....!

Am I wrong???

Nobody knows for sure what will happen over the next few months. Or years.

If you aren't comfortable with the risk and fluctuations of S&S ISAs, say "thanks very much for the 2.5k", then transfer it to a cash ISA where you've got a reliable and consistent interest rate. It's possible your gains could be wiped out very quickly, or you could gain another significant amount by the end of the year. Best advice with S&S is to put your money in for a longer spell (years, not months) and to leave it well alone. With all the information available, and T212's very addictive little graphs, it's tempting to think you can become an expert and "beat the system", when in fact much of it is out of our control.

thevoid69

Sorry to impose, but I have a T212 Cash ISA, is it easy to move it to a stocks and shares ISA and then back again if you get a loss after a month, or is it complicated to move it around like that?

InvesterJones

thevoid69 said:

Sorry to impose, but I have a T212 Cash ISA, is it easy to move it to a stocks and shares ISA and then back again if you get a loss after a month, or is it complicated to move it around like that?

I don't know what their transfer times are, but generally moving around like that in a short time frame is not good as you might be missing out on interest/growth. Stocks and shares shouldn't be considered for a month at a time, depending on what you're invested in, but you should think in terms of years, not a month, before assessing if you get a loss. If you need the money sooner then keep it in the cash ISA.