Transferring stocks and shares ISA to cash ISAs

[bots33]

Hi all, sharing my experience of transferring a liquidated stock position in my ii stocks and shares ISA, to various CASH Isa to keep within the £85k FCSC limits (and reduce sequencing risk for the next few years as I use these to finance my retirement before receipt of the state pension in 10 years time).

Opened accounts with Aldermore, Newcastle Building Society and Charter Savings Bank in the week before Christmas - sent off the forms and the only SNAFU were questions around requiring the sort and account code from ii (although they confirmed they were not needed). Charter Savings Bank processed in the week between XMas and New Year and was processed 4 Jan. Newcastle and Aldermore were processed and transferred yesterday (12 Jan). ii gave excellent comms on the progress of the process - and all worked seamlessly.

All Cash ISA providers guaranteed their rates for a month from application - so have decent returns despite recent drop - very pleased with service from both ii and Cash ISA providers.

[puffster]

Just to clarify, are you saying that you opened 3 cash ISAs in the same financial year? If so I thought that wasn't allowed or have I misunderstood the rules?

Regards, Puffster

[mc2fool]

Just to clarify, are you saying that you opened 3 cash ISAs in the same financial year? If so I thought that wasn't allowed or have I misunderstood the rules?

You have misunderstood, although they are often badly phrased and lead to the conclusion you've made.

You are only allowed to subscribe to one ISA (of each type) a year. Subscribe means to add in "new" money. You can open as many ISAs as you want if you only transfer "old" money into them, i.e. money added into the transferred-from ISA(s) in previous tax years.

If you want to transfer money you put into an ISA in the current tax year into another ISA you must transfer all of it (thus maintaining the only allowed to subscribe to one ISA a year rule), but if it's old money you can do partial transfers split whatever way you like.

[swill453]

You are only allowed to subscribe to one ISA (of each type) a year. Subscribe means to add in "new" money. You can open as many ISAs as you want if you only transfer "old" money into them, i.e. money added into the transferred-from ISA(s) in previous tax years.

If you want to transfer money you put into an ISA in the current tax year into another ISA you must transfer all of it (thus maintaining the only allowed to subscribe to one ISA a year rule), but if it's old money you can do partial transfers split whatever way you like.

Those restrictions are being done away with as from next tax year 24/25, as per the last autumn statement.

Scott.