What's the best way to get out of a stocks & shares ISA?

trevordeere

I have a stocks & shares ISA which I would like to cash in, but continue investing in an ordinary cash ISA. What would be the best way to do this but still retain tax benefits? Cash in in March & start again with cash ISA in April?

danthemoneysavingman

is the S&S a maxi or mini isa? if a mini, do you already have a mini cash isa for this tax year?

cloud_dog

trevordeere wrote: »

I have a stocks & shares ISA which I would like to cash in, but continue investing in an ordinary cash ISA. What would be the best way to do this but still retain tax benefits? Cash in in March & start again with cash ISA in April?

To do what you ask you would need to sell and transfer the S&S monies out in to you bank account and then depending on certain things you could look to put it in to a Cash ISA.

AS DTMS says, is your S&S ISA a mini or maxi ISA, if mini then you can immediately open a mini cash ISA. If the S&S ISA is a maxi one, when did you last contribute to it? If it wasn't this financial year then again you can open a mini chash ISA straight away.

cloud_dog

trevordeere

HI there, its a Maxi which I contribute to every month to the annual limit, of which the last contribution will be in March. However due to current market conditions I'm keen to get out now!

JohalaReewi

Could you switch funds from shares to a cash fund? This would move it from risky shares to something less risky but still keep it in the ISA without you having to close the ISA and start a new one (and use up your allowance).

trevordeere

That's a good idea but unfortunately not an option with New Star!

dunstonh

However due to current market conditions I'm keen to get out now!

Isnt it a bit late to do that? The markets have dropped 10-20% from the high point. The correction has largely already taken place. Its a bit like shutting the barn door after the horse has bolted.

Other options are to use non-stockmarket investments within the stocks and shares ISA allowance. High yield bonds and fixed interest funds for example.

You dont need to stay with new star to achieve this. A switch to a fund supermarket will be free of charge and you will get a greater fund range available.

Money_Watch

As dunstonh says, switching to a fund supermarket, such as Fidelity (http://www.fundsnetwork.co.uk) or Cofunds (http://www.cofunds.co.uk) will allow you to move your money around from fund to fund cheaper and easier than you can at present.

By "reregistering" your investments to one of these supermarkets, your money stays invested in the market at all times, and remains invested in the same funds until you decide to switch. There's no charge for reregistration, and switching funds can generally be done cheaply (0.25% with Fidelity).