Transfers from S&S ISA to be scrapped

Ayr_Rage

Durged said:

Aretnap said:

Durged said:

I read a daily mail article today saying our wonderful chancellor is cancelling the ability to transfer S&S ISA back to cash ISA’s, I appreciate this is to stop people putting in the additional £8k into the S&S ISA and transferring back, but what about old investments I have a lot of money currently In a S&S ISA, do I need to transfer this out to a cash ISA before the new rules apply (the compete opposite of what the alleged intention was of the cutting of the cash ISA was), or will this be for new investments only does anybody know? 

Many thanks in advance 

There are about five threads running on this already. 

If you originally put money into a S&S ISA rather than a cash ISA then you presumably did so for a reason. Why do you think that reason no longer applies, and you suddenly need to have it in a cash ISA instead?

Because I’m nearing retirement and want the security of a cash ISA instead in later life hence I want the ability to transfer it to cash ISA’s, up until Wednesday I could easily do that, now I don’t know?

You've got 16 months before any changes so plenty of time to scratch your head and think what to do.

I retired in 2016 and started collecting my SP this year and have stayed invested in my S&S ISA and have also transferred in all of my cash ISAs this year, dividend income and price appreciation have far outweighed anything I could've made moving into "safe" cash in 2016.

With interest rates now coming down cash is not the place to be.

Durged

Ayr_Rage said:

Durged said:

Aretnap said:

Durged said:

I read a daily mail article today saying our wonderful chancellor is cancelling the ability to transfer S&S ISA back to cash ISA’s, I appreciate this is to stop people putting in the additional £8k into the S&S ISA and transferring back, but what about old investments I have a lot of money currently In a S&S ISA, do I need to transfer this out to a cash ISA before the new rules apply (the compete opposite of what the alleged intention was of the cutting of the cash ISA was), or will this be for new investments only does anybody know? 

Many thanks in advance 

There are about five threads running on this already. 

If you originally put money into a S&S ISA rather than a cash ISA then you presumably did so for a reason. Why do you think that reason no longer applies, and you suddenly need to have it in a cash ISA instead?

Because I’m nearing retirement and want the security of a cash ISA instead in later life hence I want the ability to transfer it to cash ISA’s, up until Wednesday I could easily do that, now I don’t know?

You've got 16 months before any changes so plenty of time to scratch your head and think what to do.

I retired in 2016 and started collecting my SP this year and have stayed invested in my S&S ISA and have also transferred in all of my cash ISAs this year, dividend income and price appreciation have far outweighed anything I could've made moving into "safe" cash in 2016.

With interest rates now coming down cash is not the place to be.

Each to their own, and good luck, personally I think we’re due a correction especially with the current government, so I’d prefer any gain than a possible catastrophic loss without the ability to transfer what’s left in the S&S ISA into another tax free safe haven. 

Ayr_Rage

It's only a loss or gain when you sell it, ride the waves!

My portfolio fell massively at the outbreak of Covid, down 30% but since then it is up 100% and then there's the dividend income on top.

Aretnap

Durged said:

Ayr_Rage said:

Durged said:

Aretnap said:

Durged said:

I read a daily mail article today saying our wonderful chancellor is cancelling the ability to transfer S&S ISA back to cash ISA’s, I appreciate this is to stop people putting in the additional £8k into the S&S ISA and transferring back, but what about old investments I have a lot of money currently In a S&S ISA, do I need to transfer this out to a cash ISA before the new rules apply (the compete opposite of what the alleged intention was of the cutting of the cash ISA was), or will this be for new investments only does anybody know? 

Many thanks in advance 

There are about five threads running on this already. 

If you originally put money into a S&S ISA rather than a cash ISA then you presumably did so for a reason. Why do you think that reason no longer applies, and you suddenly need to have it in a cash ISA instead?

Because I’m nearing retirement and want the security of a cash ISA instead in later life hence I want the ability to transfer it to cash ISA’s, up until Wednesday I could easily do that, now I don’t know?

You've got 16 months before any changes so plenty of time to scratch your head and think what to do.

I retired in 2016 and started collecting my SP this year and have stayed invested in my S&S ISA and have also transferred in all of my cash ISAs this year, dividend income and price appreciation have far outweighed anything I could've made moving into "safe" cash in 2016.

With interest rates now coming down cash is not the place to be.

Each to their own, and good luck, personally I think we’re due a correction especially with the current government, so I’d prefer any gain than a possible catastrophic loss without the ability to transfer what’s left in the S&S ISA into another tax free safe haven. 

Several points:
(1) If you're sensibly invested you will have most of your equity holdings in international markets, so whatever you think of the current government, its policies will have little or no effect on your portfolio;
(2) Even if you're invested mainly in UK equities (why?), most of the big UK listed companies are multinationals who do most of their business abroad anyway, so see Point 1;
(3) You will still be able to de-risk within a S&S ISA by moving to low risk investments (bond funds etc) - just not zero-risk ones (money market funds, short-dated gilts etc)
(4) The ban on transfers will only apply to people under 65, so if you're approaching retirement it won't be that big a problem for you
(5) Going all in on cash when you're 65 would be silly anyway; going all in on cash BEFORE 65 would be REALLY silly
(6) But yes, if you're determined to transfer all your holdings to cash before your 65th birthday and keep them in a tax free environment you will need to do it before April 2027.

Eco_Miser

Durged said:

eskbanker said:

Durged said:

Aretnap said:

Durged said:

I read a daily mail article today saying our wonderful chancellor is cancelling the ability to transfer S&S ISA back to cash ISA’s, I appreciate this is to stop people putting in the additional £8k into the S&S ISA and transferring back, but what about old investments I have a lot of money currently In a S&S ISA, do I need to transfer this out to a cash ISA before the new rules apply (the compete opposite of what the alleged intention was of the cutting of the cash ISA was), or will this be for new investments only does anybody know? 

Many thanks in advance 

There are about five threads running on this already. 

If you originally put money into a S&S ISA rather than a cash ISA then you presumably did so for a reason. Why do you think that reason no longer applies, and you suddenly need to have it in a cash ISA instead?

Because I’m nearing retirement and want the security of a cash ISA instead in later life hence I want the ability to transfer it to cash ISA’s, up until Wednesday before 2027 I could easily do that, now after 2027 I don’t know?

Fixed that for you....

You know what I meant, if you don’t know the answer, just move on.

Nobody knows the answer, including the Chancellor, it doesn't apply to over 65's, and it's over a year in the future before new rules come into effect. You're panicking needlessly.  Cash ISA's are only secure in some aspects, raging inflation will destroy them - equities are likely to keep up.

I'm 75 and most of my money is invested, and will continue to be, until I need to spend the capital, and even then there's likely to be a substantial amount in S&S ISA.

Eyeful

To think, at one time the ISA and its rules where once simple.
Yet each government comes along and cannot resist the need to make it complicated.

Aretnap

Eyeful said:

To think, at one time the ISA and its rules where once simple.
Yet each government comes along and cannot resist the need to make it complicated.

Not really. The rules before 2014 were almost exactly the same as the ones which are now being reintroduced. So it's not a case of governments making them ever more complicated - they got simpler for a while, then they didn't. 

At least the allowance (both cash and total) is much higher than it was in the 2000's, in both nominal and real terms.

Eco_Miser

Eyeful said:

To think, at one time the ISA and its rules where once simple.
Yet each government comes along and cannot resist the need to make it complicated.

Successive governments have certainly meddles and made more complicated, or sometimes less complicated.

However I can't recall the rules ever being simple. There were maxi ISAs and mini-ISAs and TESSA-maturity ISAs, and you couldn't transfer from S&S to cash, and you couldn't hold short-duration gilts or money-market funds, and various other restrictions from the outset.

Ayr_Rage

I've only followed one ISA rule, pile in as much as allowed in stocks from the word go and only put in cash to top up the overall limit each year.

Luckily I've been able to max out the annual limits from day one.

Albermarle

Durged said:

Ayr_Rage said:

Durged said:

Aretnap said:

Durged said:

I read a daily mail article today saying our wonderful chancellor is cancelling the ability to transfer S&S ISA back to cash ISA’s, I appreciate this is to stop people putting in the additional £8k into the S&S ISA and transferring back, but what about old investments I have a lot of money currently In a S&S ISA, do I need to transfer this out to a cash ISA before the new rules apply (the compete opposite of what the alleged intention was of the cutting of the cash ISA was), or will this be for new investments only does anybody know? 

Many thanks in advance 

There are about five threads running on this already. 

If you originally put money into a S&S ISA rather than a cash ISA then you presumably did so for a reason. Why do you think that reason no longer applies, and you suddenly need to have it in a cash ISA instead?

Because I’m nearing retirement and want the security of a cash ISA instead in later life hence I want the ability to transfer it to cash ISA’s, up until Wednesday I could easily do that, now I don’t know?

You've got 16 months before any changes so plenty of time to scratch your head and think what to do.

I retired in 2016 and started collecting my SP this year and have stayed invested in my S&S ISA and have also transferred in all of my cash ISAs this year, dividend income and price appreciation have far outweighed anything I could've made moving into "safe" cash in 2016.

With interest rates now coming down cash is not the place to be.

Each to their own, and good luck, personally I think we’re due a correction especially with the current government, so I’d prefer any gain than a possible catastrophic loss without the ability to transfer what’s left in the S&S ISA into another tax free safe haven. 

If there is a market downturn, it is almost certain to be caused by a bursting of the Big Tech bubble in the US.
The U.K. government influence on global stock markets is about zero .