Savings/Investing Advice for Newbie

Nivlo

Looking for some advice on investing 40-50k.

We have 15k of savings in easy access savings account. My wife’s company SAYE shares scheme just matured making us a healthy profit. This was with Equiniti who helped us setup a dealing account & S&S ISA, 20k worth of shares put into ISA and now sold, looking to move the remaining which is sitting at 15k in dealing account into the same S&S ISA in new tax year.

As a newbie to all this haven’t really found Equiniti to be easy to navigate or helpful when we’ve called them.
Was planning on taking the 20k we’ve sold out and setting up a S&S ISA elsewhere in my name, then move the rest in new tax year between my wife and me.
Question really is are there better platforms to use out there than Equiniti, how helpful are they and where do I start in educating myself and picking a fund.

Many Thanks

Albermarle

and where do I start in educating myself and picking a fund.

Spending some time reading through this forum and the ISA sub forum would probably be a good start.

mebu60

Do not withdraw the funds from the ISA yourself, you will lose the tax wrapper benefit if you do that.

You need to open a S&S ISA with your new provider that accepts transfers-in then instruct them during the application process to transfer in your existing S&S ISA. Given how close we are to 6/4 it might be more straightforward to move the remaining balance from the dealing account into the Equiniti S&S ISA before initiating the transfer-in with a new provider.

I have S&S ISAs with Fidelity and iWeb (now part of Scottish Widows). I would point you towards the latter in the first instance as a potential platform to use..

Global multi-asset funds are likely to be a reasonable selection over the long term. HSBC offer suitable ones. As do others.

Nivlo

https://forums.moneysavingexpert.com/discussion/comment/81899394#Comment_81899394

I thought the whole point of the S&S ISA was to protect from paying capital gains tax? We’ve been told by a few people that once it’s in the S&S ISA and the shares are sold from the scheme you are free to withdraw or re-invest.
If this isn’t the case what’s the point of doing it to start with if you’re never going to avoid the CGT when eventually withdrawing?

Also, would we not be prevented from moving the rest from the dealing account to the S&S ISA in this tax year as we’ve already maxed out this years allowance?

Sorry if I’m missing something obvious but as said, pretty new to all this.

Eco_Miser

Nivlo asked at Today at 7:12PM
I thought the whole point of the S&S ISA was to protect from paying capital gains tax? We’ve been told by a few people that once it’s in the S&S ISA and the shares are sold from the scheme you are free to withdraw or re-invest.

You are. But if you are going to re-invest, you should keep the money in an ISA, because if you take it out you lose the protection on future capital gains and dividend tax.

If this isn’t the case what’s the point of doing it to start with if you’re never going to avoid the CGT when eventually withdrawing?

You have avoided the CGT on the SAYE shares; if you withdraw, rather than transferring, you lose future protection.

Also, would we not be prevented from moving the rest from the dealing account to the S&S ISA in this tax year as we’ve already maxed out this years allowance?

That's what I thought when I first read mebu60's post, but on re-reading I think he means wait until 6 April, transfer the remainder of the SAYE shares to Equiniti S&S ISA, then initiate the transfer to SW or elsewhere.

Nivlo

https://forums.moneysavingexpert.com/discussion/comment/81899838#Comment_81899838

Thanks for the info, certainly seems more complicated than the wealth management specialists explained.

Just to clarify again on the CGT, if we transfer the 20k out into our bank account then in 3 weeks put it into a S&S ISA in my name with SW, anything we make on that when withdrawn is liable for CGT because it was initially in a S&S ISA?

Or is it when it’s withdrawn in bank account and then not invested in a S&S ISA you pay CGT on any future growth?

It is always the intention to move it back into S&S ISA but just seems a lot less hassle getting it into bank account, picking new ISA and then investing rather than transferring from one provider to another.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81900033#Comment_81900033

On your last point, it should be easy to transfer from one provider to another. Just open the new ISA and look for the transfer form on their website.

On your first points. What comes out of an ISA is tax free at that point, any gains you then make on it, when it isn’t ISA wrapped are taxable. It then goes into the new ISA as new money and is then tax free again. Think of the ISA as the raincoat that protects from the rain, though in this case it’s an ISA wrap protecting from tax. When the raincoat /ISA wrap is on its protected.

The advantage of transferring rather than out and back in, is that you can put £20k new money in every year. Cashing out means it becomes new money going in.

LHW99

Just to clarify again on the CGT, if we transfer the 20k out into our bank account then in 3 weeks put it into a S&S ISA in my name with SW, anything we make on that when withdrawn is liable for CGT because it was initially in a S&S ISA?

If you make more than £3k (pa) between withdrawing from the ISA and reinvesting would be subject to CGT, just as it would have been if it was investments that had never been in an ISA. If kept as savings then interest above the PSA would be taxed at income tax rates.

Or is it when it’s withdrawn in bank account and then not invested in a S&S ISA you pay CGT on any future growth?

Correct (as above)

It is always the intention to move it back into S&S ISA but just seems a lot less hassle getting it into bank account, picking new ISA and then investing rather than transferring from one provider to another.

If you did that now, but weren't able to get a new S&S ISA opened / funded this financial year, so the the £20k went in after April 6th, you would have used this year's allowance, and couldn't put more new money in.

Transferring would preserve that option.

….then move the rest in new tax year between my wife and me.

However, if the aim is to get the money moved from your wife's name to yours, then withdrawing and re-depositing is the only option - you cannot directly transfer an ISA in one name to someone else.

You could (if you were quick) get the money into a cash ISA this tax year and then transfer that into an S&S ISA whenever. If done by transfer that wouldn't affect your future ISA allowances.

Nivlo

https://forums.moneysavingexpert.com/discussion/comment/81900235#Comment_81900235

All great info & think I'm finally getting my head around it.

The only reason I was planning to move into my name was because my wife had maxed out hers this year, I didn't think she could open up another S&S ISA this tax year and transfer it in. If that is not the case then sounds like best way is she opens up another S&S ISA with someone else ASAP, starts the transfer from Equiniti in the hope of beating 6/4 deadline. After 6/4 sell the remaining original shares and move from Equiniti dealing to EQI S&S ISA, then do transfer again. 15K cash savings we have in bank account can just stay as play money or I create own S&S ISA for that.

Good problem to have I suppose.

Nivlo

Some final questions …..

Is my wife able to open another S&S ISA with another provider to transfer over from existing S&S ISA this tax year?

As we’ve sold the shares in the S&S ISA and it’s now sitting in cash, will Equiniti give us a time limit on how long cash can sit in the ISA without being invested?

Finally, SW was mentioned as an alternative, any other recommendations? Looking for one that’s easy to navigate, lots of info and to start will look to invest in a medium risk fund.

Thanks again for all the help.

Eco_Miser

You (or she) can open / have open as many ISAs in a year as is practicable (new rule for 2025/6), and can transfer between them, subject to the receiving ISA manager being willing to accept (and the sending manager being willing to split, if that is required). There is a limit of £20k NEW MONEY each tax year.

Monevator have just done a comprehensive summary of ISAs https://monevator.com/annual-isa-allowance/ It should answer your questions, but if not come back and ask them. They also have a list of brokers/platforms https://monevator.com/compare-uk-cheapest-online-brokers/

The ability to transfer shares from SAYE to ISA without selling (within 90 days) is a special thing and saves CGT on gains that arose outside the ISA. That's almost unique, and well worth dealing with a little complexity.