Follow this topic Q&A » ISAs

I have contributed my isa allowance for 2009/2010 into a cash ISA, variable rate, but want to transfer some into a Share ISA. How much can I transfer

by Crissa 22 March 2010 |

3 comments | Love

Love 0 loves

I have a cash ISA whch has accumulated to just over £25 K. I have paid in £4,000 of my £5,100 allowance for 2009/2010 (having just reached the grand age of 50 in november). Now as cash ISA interest rates are pretty poor I thought it might make more sense to transfer some of my cash ISA into my allowance into a Share ISA. Am I rght in thinking this would be limited to £6,200, since I have paid in 4,000 into the cash ISA? I opted for the monthly interest rate,- so would this still be permissible to transfer before the end of the tax year?

Report

Enjoyed this? Show it some love

Retweet

Comments (3)

Facebook

Twitter

General

Comments (3)

410

manzanilla posted
You can transfer it all. The £10,200 limit is the amount of "new" money that you can put into ISAs this year. Transferring cash ISA money from previous years - and its accumulated interest - does not count towards this.
You can transfer it now or in the next financial year, it makes no difference because it is all "old" money as it is already invested in ISAs. Therefore it wont count towards this years or next years allowances.
manzanilla
Posted on 22 March 2010 | Love 0 loves Report
272

Swarbs posted
As it stands, your total ISA allowance is £10,200, with up to £5,100 going into a cash ISA and any remainder going into shares. As such, you can open a shares ISA and pay up to £6,200 into it straight away - there is no need to make any formal 'transfer' of your ISA allowance. At the end of the year HMRC will receive details of your ISA investments from the relevant managers and will see £6,200 in shares and £4,000 in cash hence no problem.
If you want to transfer your £4,000 cash ISA (and / or any previous years cash ISA contributions) to a shares ISA, then you need to contact your chosen shares ISA manager and ask them to make the transfer. Give them the details of your cash ISA and fill out an authorisation form and they will transfer it within a few weeks. As manzanilla says, it doesn't matter if this transfer goes through before or after 5th April - the £4,000 you paid in will always count towards this tax year, so next year's allowance won't be affected. Just make sure to get the shares ISA company to do the transfer for you - if you withdraw any money from your cash ISA and pay it into the shares ISA it will count against your annual allowance again, and so you'll lose out on some of the allowance. Also bear in mind that your cash ISA company may charge you a fee or a penalty for making the transfer, particularly if you agreed to a fixed rate ISA and are still in the fixed rate period.
Posted on 22 March 2010 | Love 0 loves Report
804

MikeGG1 posted
Crissa
If you have new money to invest, you can invest up to £6,200 in a S&S ISA but it must be by 5 April to count as 2009/10.
Because it takes 2 or 3 weeks to effect, it is probably better to wait until after 6 April to make the transfer to avoid confusion. The transfer would not count against your allowance, so another £10,200 would be available from 6 April.
Alternatively, you could transfer your Cash ISA to a higher paying fixed-rate ISA Bond.
Mike
Posted on 22 March 2010 | Love 0 loves Report

Post an answer

Something you're dying to ask... or answer?

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

W3C Thank you for using One Flew Over the Cuckoo's Nest