Stocks and Shares ISA to Cash ISA Transfer

invuk

I have about 5k in cash in my stocks and shares ISA I would like to transfer to a cash ISA and retain the tax break. I also have stocks and shares in the same ISA. Can you go to a new provider of a cash ISA and request the cash only to be transferred into the account? Thanks.

eskbanker

In principle, yes, but it'll be dependent on whether both providers support partial transfers.

invuk

eskbanker said:

In principle, yes, but it'll be dependent on whether both providers support partial transfers.

Thanks, I'll look into this a bit more. Failing that I could sell everything in the stocks and shares ISA and then proceed.

Albermarle

The other alternative is to leave it where it is.
Normally cash in a S&S ISA earns some interest, but usually it is less than you can get in a savings account.
The usual thing to do would be to invest the cash in a - Short term money market fund- which will pay the current Bank of England rate and they are regarded as very safe investments ( but not 100% guaranteed).

masonic

If you name the S&S ISA provider, you may be able to get a quick answer on whether a partial transfer of cash is feasible.

You'll be able to pay up to £20k of new money into a cash ISA during the next tax year and thereafter £12k per tax year, so consider whether you can achieve the right balance through new contributions or self-transfer if provider restrictions prevent you doing exactly what you intended.

The money market fund within S&S ISA option exists now, and likely nobody will be forced to sell holdings they have before rules change, but there tends to be a rate advantage in cash ISAs in a falling/flat interest rate environment, so I can understand the desire to switch from one type to the other.

invuk

The S&S ISA I wish to transfer the cash from (also have stocks and shares in this) is Scottish Widows. The actual amount is just over £6600.

Never heard of money market funds but have had a look and can't figure out whether this would be suitable for what could be 6-12 months. 

Thanks.

masonic

invuk said:

The S&S ISA I wish to transfer the cash from (also have stocks and shares in this) is Scottish Widows. The actual amount is just over £6600.

Never heard of money market funds but have had a look and can't figure out whether this would be suitable for what could be 6-12 months. 

Thanks.

As in the original Scottish Widows product? I don't know about that, but iWeb, which has recently been rebranded SW did not allow partial transfers.

Short Term Money Market Funds are suitable for a 6-12 month horizon. It would take something extreme and unprecedented for them to lose money. In my personal experience, I've not known a week where they've been down. It looks like the original SW platform has the popular Royal London STMMF which you can see zig-zags as it accumulates then distributes income, but capital value stays flat. iWeb also gives access to ETFs like CSH2, which tracks the SONIA interbank sterling rate.

soulsaver

masonic said:

invuk said:

The S&S ISA I wish to transfer the cash from (also have stocks and shares in this) is Scottish Widows. The actual amount is just over £6600.

Never heard of money market funds but have had a look and can't figure out whether this would be suitable for what could be 6-12 months. 

Thanks.

As in the original Scottish Widows product? I don't know about that, but iWeb, which has recently been rebranded SW did not allow partial transfers.

Short Term Money Market Funds are suitable for a 6-12 month horizon. It would take something extreme and unprecedented for them to lose money. In my personal experience, I've not known a week where they've been down. It looks like the original SW platform has the popular Royal London STMMF which you can see zig-zags as it accumulates then distributes income, but capital value stays flat. iWeb also gives access to ETFs like CSH2, which tracks the SONIA interbank sterling rate.

Eh? I've done several partial ISA transfers from iWeb, and have one on the go atm.
I will say it's never been a good experience.