Cashing ISAs

Labrynth_maze · 17 September 2004 at 6:06PM

I have an ISA that is embedded in just 2 companies.
The value of the ISA (which started at £7k 2 years ago) is worth £9.5K.

Is it worth cashing in this ISA to take advantage of the gain made?
Is it worth cashing in part of it to capitalise on the gain and then topping the ISA back up again (if this is even possible!)?

In a nutshell what would anyone recommend bearing in mind that I obviously want to take advantage of a gain, but want to make sure it is tax free and would probably be using this monmey towards a deposit in 18-24 months time.

Hope someone can advise.
Cheers
LM

dunstonh · 18 September 2004 at 12:50AM

You dont need to encash them to protect the gains.

Just switch some of the fund into an alternative fund. If you prefer that alternative fund to be lower risk, then pick a corporate bond or gilt fund.

Tabasco · 25 September 2004 at 6:23PM

If you don't need the money but you want it to be in a 'safer' hand, then do what DD said, switch to a safer funds such as Bond/Money funds where the risks are relatively lower. Do not cash it unless you need to as you cannot 'top it back up' because there is a limit for every year and you cannot invest into ISA for previous years. Just look around for a different fund/company.

Don't forget to check their exit/sale charges and transfer-out fees (if you change fund manager). Sometimes doing it through an IFA has an advantage as you can negotiate to, ie, get the initial charge rebates on top of discount offered by fund manager.

Labrynth_maze · 27 September 2004 at 11:22AM

Thanks for your pieces of advise.
Helps to put me on the right tracks.

Think I'm goign to switch half of the funds into a gilt fund to protect what I have and take out a lot of the risk.

Thanks
LM

Cashing ISAs

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