Post April 2027, can people over 65 still transfer from a shares isa to a cash isa?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81995382#Comment_81995382

While, as above, the details haven't been published yet, my expectation from what has been announced (by the government, as opposed to speculation) is that effectively nothing changes for over-65s.

Unless anything new is published after consultation, it does seem that ISA providers are going to need to have a two-tier approach to products, i.e. an under-65 version and a separate over-65 one, with different rules, but since the latter is unchanged from the current one, it's only the under-65 version that's going to need the new rules about the lower cash contributions, transfer restrictions, cashlike product restrictions, etc.

seacaitch

https://forums.moneysavingexpert.com/discussion/comment/81995356#Comment_81995356

This is unlikely IMO.

The simplest implementation would be for various securities to no longer be considered as qualifying investments - back to how the rules used to be prior to 2014's New ISA (NISA) reforms.

The question then becomes whether HMRC will allow existing holdings to be retained (as is the case with Cryptoasset Exchange Traded Notes - cETNs - which could be retained if already held), or whether no such grandfathering occurs and brokers have to issue notices for people to sell these investments by a certain deadline or face ejection of them from their ISAs. I'd hope existing holdings will be allowed, but it could go either way.

Reversing those NISA reforms is most unfortunate, IMO: the political desire to encourage savers to invest will catch in the crossfire those do already invest, but who happen to have entirely rational reasons for holding cash-like instruments from time-to-time (a multitude of valid reasons exist). Removing this flexibility from them will be a sign of poorly considered, or poorly implemented, policy, which naturally invites questions about whether it's really about encouraging investment or is equally about raising taxes.