ISA question

MouldyOldDough

I have just over £100k invested in a fully managed S&S ISA which has not done as well as I hoped recently - with charges etc.

I am considering withdrawing 50% and investing in a cash ISA - Is this allowed ?

El_Torro

You are allowed to transfer money from a S&S ISA to a Cash ISA, at least for now. The rules will change on April 6th 2027, it will be harder for people under 65 to put money into a Cash ISA then. I'm not sure if the exact rules have been published yet, so it might still be possible to transfer old money in a S&S ISA to a Cash ISA then.

Depending on your circumstances it might not be a good idea to move money from a S&S ISA to a Cash ISA now. It might be a better idea to change what you are invested in if you are not happy with the results so far.

MouldyOldDough

https://forums.moneysavingexpert.com/discussion/comment/82002027#Comment_82002027

What about vice versa - if after 12 months, I want to reverse the investment ?

El_Torro

Nothing has been said about stopping people transferring from a Cash ISA to a S&S ISA after this coming April, so you should be fine to do that.

Aylesbury_Duck

Transferring cash from a cash ISA to a S&S ISA will be possible in 12 months (as it is now).

Knee-jerking £50k in and out of the two types of ISA probably isn't a good idea, though. What do you hope to achieve? Or is it that you have £50k of imminent expenditure needed and foresee having £50k to reinvest in a year's time?

Bobziz

Just to be clear, withdrawing and transferring are not the same things. Only the latter preserves the tax free status.

Furthermore, it won't be your ISA that "has not done well" it will be what you have invested in within the ISA.

What have you invested in, how has it performed and over what period ?

poolboy

Post up what the ISA contains and people can comment. Mines done well this year and I DIY, I listen to investors chronicle and meaningful money podcast. It's free and full of good ideas.

If I were you I d be asking the managed service provider why they ve done what they ve done. Benchmark their performance v indices and see it's good value. It's your money and future on the line.

marlot

https://forums.moneysavingexpert.com/discussion/6668711/isa-question

You might want to read up on money market funds (MMFs) - you could consider keeping your money in the S&S ISA, but moving some to be in MMFs.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82002031#Comment_82002031

As repeated so many times on these forums:

Do not try and time the markets by swopping in and out of investments.

As already suggested some details about the apparently poor performing investments, could mean you get some informed comment.

Dizzycap

https://forums.moneysavingexpert.com/discussion/comment/82002170#Comment_82002170

Key Changes from 6 April 2027 (Age Dependent)

• Reduced Cash ISA Limit (Under 65s): If you are aged 18–64, you can only deposit a maximum of £12,000 into a Cash ISA per tax year.
• Total Allowance Unchanged: The overall £20,000 ISA allowance still applies. The remaining £8,000 can be used in other ISA types, such as Stocks and Shares ISAs.
• No Changes for Over 65s: Individuals aged 65 or older by 6 April 2027 are exempt and can continue to pay the full £20,000 into a Cash ISA.
• Transfer Restrictions: Individuals under 65 will be banned from transferring funds from Stocks & Shares or Innovative Finance ISAs into Cash ISAs.
• Cash-like Instruments: Restrictions will be introduced to prevent "cash-like" instruments (e.g., money market funds) from being held within Stocks & Shares ISAs by under-65s.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82002574#Comment_82002574

At this stage, nobody really knows what will happen to existing investments, if the changes will happen on 6th April 2027, or if they'll happen at all. There isn't any agreement yet on what the specific rules will be, and providers will need to make substantial changes to their systems, which will take months.

A S&S to cash ISA transfer will be possible if and when restrictions are confirmed.