Transfers from S&S ISA to be scrapped

Vitor

The budget is unravelling quicker than a primark sweater

ColdIron

Aretnap said:

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. 

(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

Is this the case? I haven't seen any exemptions for transfers that apply to 65s and over. It appears to be a blanket ban from what I've read. Happy to be proved wrong

For that matter I haven't seen anything that would allow 65s+ being allowed to purchase cash like securities, again happy to educated by the better informed than me

Edit: Unless it's this

The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs:

• no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs
• tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’
• a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA

These rules will apply to investors under the age of 65.

https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025

Uriziel

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?

Very silly response. What if the interest rate becomes 20% tomorrow? We should have the option of moving the money from the S&S ISA to Cash to make use of the interest rates. What if someone triples their ISA via selling stocks and then decides they want to take it easy and just get interest on their savings without risk?

Notepad_Phil

ColdIron said:

Aretnap said:

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. 

(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

Is this the case? I haven't seen any exemptions for transfers that apply to 65s and over. It appears to be a blanket ban from what I've read. Happy to be proved wrong

For that matter I haven't seen anything that would allow 65s+ being allowed to purchase cash like securities, again happy to educated by the better informed than me

Edit: Unless it's this

The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs:

• no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs
• tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’
• a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA

These rules will apply to investors under the age of 65.

https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025

Yes it's that - though it's early days so things can always change, and I sincerely hope they do change for the better and these cash changes just get dropped (well I can always hope  )

Aretnap

Uriziel 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?

Very silly response. What if the interest rate becomes 20% tomorrow? We should have the option of moving the money from the S&S ISA to Cash to make use of the interest rates. What if someone triples their ISA via selling stocks and then decides they want to take it easy and just get interest on their savings without risk?

Obviously if you want to take it easy and just earn interest in your savings, you can. The interest might just be taxable. The intent behind the changes is to make holding investments more attractive from a tax perspective than holding cash, so that's a feature, not a bug.

Must say that for me, tripling my money tax free, then paying a bit of tax on further interest afterwards would fall firmly into the category of nice problems to have. But I guess some people just always want more. 

Must also say that the cash ISA is any will remain an extremely generous tax break by any reasonable standard, but which somehow send to have been elevated to a fundamental human right. Most countries have nothing equivalent to it at all - usually any interest you earn on cash savings is taxable, full stop.

Anyway, if keeping your money as cash in a tax free environment really is that important to you, you still have until April next year to do it.

Aretnap

ColdIron said:

Aretnap said:

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. 

(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

Is this the case? I haven't seen any exemptions for transfers that apply to 65s and over. It appears to be a blanket ban from what I've read. Happy to be proved wrong

For that matter I haven't seen anything that would allow 65s+ being allowed to purchase cash like securities, again happy to educated by the better informed than me

Edit: Unless it's this

The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs:

• no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs
• tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’
• a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA

These rules will apply to investors under the age of 65.

https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025

That's it, yes. It's a little bit light on detail, but the implication to me is that the restriction on holding cash-equivalent investments in ISAs will be waived for the over-65s.

Presumably that would require ISA providers to update their IT systems to maintain two separate lists of investments available to two different classes of customer. So it remains to be seen if they will all actually offer money market funds to the over 65s in practice - but if there's enough demand then doubtless at least some if then will.

Aretnap

Vitor said:

The budget is unravelling quicker than a primark sweater

I wouldn't confuse a few very online people being grumpy about the budget with the budget unraveling, personally.

Section62

Aretnap said:

...
Must say that for me, tripling my money tax free, then paying a bit of tax on further interest afterwards would fall firmly into the category of nice problems to have. But I guess some people just always want more. 
...

"The value of investments and the income from them, can go down as well as up, so you may get back less than you invest."

"Paying a bit of tax" perhaps feels much less of a burden when sitting on a healthy profit.  Maybe not so much when the markets haven't been so kind.

hallmark

Aretnap said:

Vitor said:

The budget is unravelling quicker than a primark sweater

I wouldn't confuse a few very online people being grumpy about the budget with the budget unraveling, personally.

A very few online people? If you really think that's all it is you are not getting out much.

I know many people who don't go online at all who are livid, and they're all "working people".

hallmark

Section62 said:

Aretnap said:

...
Must say that for me, tripling my money tax free, then paying a bit of tax on further interest afterwards would fall firmly into the category of nice problems to have. But I guess some people just always want more. 
...

"The value of investments and the income from them, can go down as well as up, so you may get back less than you invest."

"Paying a bit of tax" perhaps feels much less of a burden when sitting on a healthy profit.  Maybe not so much when the markets haven't been so kind.

There is, IMO, quite a lot of recency bias when it comes to market returns. I've literally read people today confidently stating as fact that the market always outperforms cash even over short term periods.

Of course in reality there have been quite a few downturns which took many years to recover just to where they were, and most valuations would suggest another of those is at the very least, possible.

Cash could very easily outperform shares over a 5 or even 10 year period.  It might not, but it could, and it's not just a theoretical possibility.

It's not hard to envisage a scenario where these changes force lots of people reluctantly into holding shares just as the market finally hits a proper downturn.  Again, at the very least this is a real possibility.