Stocks & Shares ISA without shares

goldeneagle69

With Rachel Reeves changing the ISA limits i have a quick question or two re Stocks & Shares ISAs. I have a Trading 212 Stocks & Shares ISA, with £1000 in cash and £500 in shares. I get approximately 4.05% interest on the cash. Can I bump this up to £20000 (including shares values) and avoid the new £12000 tax limit, or do I only get that if I buy £20000 of shares? If I don't need to buy the shares then it will avoid the potential losses of a market collapse? Won't this however make a mockery of the chancellors limit?

eskbanker

I hadn't noticed until looking it up just now but the £12K limit is phrased as relating to "ISA cash" rather than "cash ISA":

From 6 April 2027 the annual ISA cash limit will be set at £12,000, within the overall annual ISA limit of £20,000.

but too early to assess implementation detail, there'll be plenty of that over the intervening 17 months!

dunstonh

In the past, S&S ISAs (and PEPs) could not contain cash, cash funds or cash like funds.   So, it is possible to add restrictions to S&S ISAs on what they can hold.

The details are not yet known but will follow.

eskbanker

dunstonh said:

In the past, S&S ISAs (and PEPs) could not contain cash, cash funds or cash like funds.   So, it is possible to add restrictions to S&S ISAs on what they can hold.

The details are not yet known but will follow.

Out of curiosity, how did it work before?  Obviously, with the exception of sharesaves, it's only cash that can be contributed to S&S ISAs, so was there some sort of deadline to get it invested once there?

Ayr_Rage

@goldeneagle69 you are getting 4.05% on uninvested cash in a T212 stocks ISA.

How the new limit for youngsters will be applied is yet to be known.

For a while I held a large amount of cash in a T212 INVEST account and never bought a single investment as the interest rate was beating any other easy access account, I eventually got a warning email that the Invest account was not designed for holding cash only so moved it elsewhere.

I am currently holding nearly £6000 in dividend cash in my T212 Stocks ISA as due to their crazy limits I cannot reinvested it in my chosen shares as I already have the maximum allowed holding in that company.

I've not had any warnings as yet.

goldeneagle69

Ayr_Rage said:

@goldeneagle69 you are getting 4.05% on uninvested cash in a T212 stocks ISA.

How the new limit for youngsters will be applied is yet to be known.

For a while I held a large amount of cash in a T212 INVEST account and never bought a single investment as the interest rate was beating any other easy access account, I eventually got a warning email that the Invest account was not designed for holding cash only so moved it elsewhere.

I am currently holding nearly £6000 in dividend cash in my T212 Stocks ISA as due to their crazy limits I cannot reinvested it in my chosen shares as I already have the maximum allowed holding in that company.

I've not had any warnings as yet.

So they want us to invest in shares, but then put a limit on he amount of shares you can buy with the dividends? How does this make people want to use a S&S ISA?

eskbanker

goldeneagle69 said:

Ayr_Rage said:

@goldeneagle69 you are getting 4.05% on uninvested cash in a T212 stocks ISA.

How the new limit for youngsters will be applied is yet to be known.

For a while I held a large amount of cash in a T212 INVEST account and never bought a single investment as the interest rate was beating any other easy access account, I eventually got a warning email that the Invest account was not designed for holding cash only so moved it elsewhere.

I am currently holding nearly £6000 in dividend cash in my T212 Stocks ISA as due to their crazy limits I cannot reinvested it in my chosen shares as I already have the maximum allowed holding in that company.

I've not had any warnings as yet.

So they want us to invest in shares, but then put a limit on he amount of shares you can buy with the dividends? How does this make people want to use a S&S ISA?

You may be mixing up 'they's there - the government want us to invest in shares and use a S&S ISA, but Trading212 have some funny rules of their own....

wmb194

goldeneagle69 said:

Ayr_Rage said:

@goldeneagle69 you are getting 4.05% on uninvested cash in a T212 stocks ISA.

How the new limit for youngsters will be applied is yet to be known.

For a while I held a large amount of cash in a T212 INVEST account and never bought a single investment as the interest rate was beating any other easy access account, I eventually got a warning email that the Invest account was not designed for holding cash only so moved it elsewhere.

I am currently holding nearly £6000 in dividend cash in my T212 Stocks ISA as due to their crazy limits I cannot reinvested it in my chosen shares as I already have the maximum allowed holding in that company.

I've not had any warnings as yet.

So they want us to invest in shares, but then put a limit on he amount of shares you can buy with the dividends? How does this make people want to use a S&S ISA?

For quite a while I've been about 60/40 cash/investments in my T212 S&S Isa and T212 hasn't complained. I suspect you could get away with fewer investments.

Ayr_Rage

eskbanker said:

goldeneagle69 said:

Ayr_Rage said:

@goldeneagle69 you are getting 4.05% on uninvested cash in a T212 stocks ISA.

How the new limit for youngsters will be applied is yet to be known.

For a while I held a large amount of cash in a T212 INVEST account and never bought a single investment as the interest rate was beating any other easy access account, I eventually got a warning email that the Invest account was not designed for holding cash only so moved it elsewhere.

I am currently holding nearly £6000 in dividend cash in my T212 Stocks ISA as due to their crazy limits I cannot reinvested it in my chosen shares as I already have the maximum allowed holding in that company.

I've not had any warnings as yet.

So they want us to invest in shares, but then put a limit on he amount of shares you can buy with the dividends? How does this make people want to use a S&S ISA?

You may be mixing up 'they's there - the government want us to invest in shares and use a S&S ISA, but Trading212 have some funny rules of their own....

Yes, it's T212's bizarre limits that is stymying me.

I bought 3438 shares on 4th August.

I transferred in 70,766 shares on 8th August (In specie transfer from HL)

I received a dividend of £5250 at the end of September and tried to reinvest and came up against this.

So even though I transferred in an amount above the maximum position I cannot buy any more.

dunstonh

Out of curiosity, how did it work before?  Obviously, with the exception of sharesaves, it's only cash that can be contributed to S&S ISAs, so was there some sort of deadline to get it invested once there?

In the early days, the cash would instantly buy units.  And income units would either pay out or reinvest.  Nothing remained in cash.   If my memory serves me correctly, later on, up to 30 days was allowed to be held.

There are probably more questions than answers on this change.