ISA guidance - Intelligent Money Private Clients

ISA guidance - Intelligent Money Private Clients

Author
Discussion

fat80b

2,313 posts

223 months

Friday 15th December 2023
quotequote all
B9 said:
If I deposit the 20k back before tax year end.
You can’t.
Paying into an ISA in the tax year is limited. Withdrawals don’t matter.

Ie - you can’t pay 20k in , withdraw it, and put it back in again. That would mean you’ve paid 40k in that year which is against the rules

Benjy911

545 posts

148 months

Friday 15th December 2023
quotequote all
fat80b said:
B9 said:
If I deposit the 20k back before tax year end.
You can’t.
Paying into an ISA in the tax year is limited. Withdrawals don’t matter.

Ie - you can’t pay 20k in , withdraw it, and put it back in again. That would mean you’ve paid 40k in that year which is against the rules
Given it's a flexible ISA, provided it's in the same tax year, the whole point is you can withdraw and deposit again without affecting the allowance.

fat80b

2,313 posts

223 months

Friday 15th December 2023
quotequote all
Benjy911 said:
Given it's a flexible ISA, provided it's in the same tax year, the whole point is you can withdraw and deposit again without affecting the allowance.
My apologies- I missed that bit.

Jammez

665 posts

209 months

Thursday 4th January
quotequote all
Hi Folks

Looking for a bit of advice on my S&S ISA through Aegon. It was established 20 years ago as part of my then interest only mortgage. I quickly changed the mortgage to a repayment type which has since been paid off. I continued with the ISA as a form of regular savings (it's only £100 per month) and at various points I've cashed in chunks.

There's currently circa £7k in it with £100 per month being added. Over the years I've paid very little attention to it but looking at it recently I don't think it performing particularly well. It was originally set up through Nationwide & has changed across the years and is currently the L&G Future World Sustainable UK Equity Fund via Aegon.

Link to the fund is below.

https://fundcentres.lgim.com/en/uk/institutional/f...

From my limited understanding it hasn't performed particularly well, any suggestions on where I should be looking and what I need to consider?

Many thanks

forest172

688 posts

208 months

Thursday 4th January
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As I understand it if you have an ISA worth £100K you can put another £20k in during that tax year. But f you want to take out the £100k to during that tax year you can as long as you put it back during the same tax year. However it must be a flexible ISA

twokcc

839 posts

179 months

Sunday 28th January
quotequote all
Don't think about posting in this thread. Will pm Nick @ IM on money re my query on this thread re selling shares in an old S&S's ISA then transferring cash into a new cash ISA after I have already opened a cash ISA in this tax year

Link to thread

https://www.pistonheads.com/gassing/topic.asp?h=0&...





Edited by twokcc on Sunday 28th January 06:27

Intelligent Money

Original Poster:

518 posts

65 months

Monday 29th January
quotequote all
twokcc said:
Don't think about posting in this thread. Will pm Nick @ IM on money re my query on this thread re selling shares in an old S&S's ISA then transferring cash into a new cash ISA after I have already opened a cash ISA in this tax year

Link to thread

https://www.pistonheads.com/gassing/topic.asp?h=0&...





Edited by twokcc on Sunday 28th January 06:27
Hi twokcc

My e-mail is nik.burrows@intelligentmoney.com

For this tax year 23/24 you can only contribute to one S&S ISA and one Cash ISA per tax year, so if you have made contributions to a Cash ISA already this year you won't be able to open another one until April 6th 2024. Ironically from that point the new ISA rules will be in-place which will allow multiple ISA to be contributed to in a tax year.

Your current provide may have a money market option within the S&S ISA that may offer you an option that is similar to cash in the meantime.

Hope that helps

Cheers

Nik


xerawh

333 posts

129 months

Thursday 4th April
quotequote all
IM team,

Are your ISA accounts 'flexible ISAs'? In that, if I am planning to withdraw a sum on 7 April 2024, do I have until the end of the tax year to replace it without using up my separate new £20k allowance for the year?

Thanks.

B9

479 posts

97 months

Thursday 4th April
quotequote all
xerawh said:
IM team,

Are your ISA accounts 'flexible ISAs'? In that, if I am planning to withdraw a sum on 7 April 2024, do I have until the end of the tax year to replace it without using up my separate new £20k allowance for the year?

Thanks.
Yes they are, I’ve done the same this year

xerawh

333 posts

129 months

Thursday 4th April
quotequote all
B9 said:
xerawh said:
IM team,

Are your ISA accounts 'flexible ISAs'? In that, if I am planning to withdraw a sum on 7 April 2024, do I have until the end of the tax year to replace it without using up my separate new £20k allowance for the year?

Thanks.
Yes they are, I’ve done the same this year
Thanks. I did see mention of it being 'flexible' in the T&Cs, but parts of the T&Cs seem outdated so want to check (e.g. Junior ISA allowance is based on 2017 amounts).

Inspectorclueso

666 posts

254 months

Wednesday
quotequote all
This may be a basic one but I can't find a clear, simple explanation as yet !

My situation is I put £20k into a Santander fixed rate cash ISA in the 23/24 tax year. That has just matured and I now have the £20k plus interest sitting in the Santander cash ISA which is only paying 1.2%.

For this year i.e. 24/25 I've opened another Cash ISA (trading 212) with another £20k paying 5.2% (or thereabouts).

I have no previous ISAs before 23/24.

Obviously I don't want to leave the £20k Santander sitting at 1.2%. Can I move the £20k 23/24 investment into another providers ISA which pays more than Santander, given that I have opened a 24/25 cash ISA and used full allowance. I assume that I Can, otherwise how to you optimise each year and get to multiple £20k's ?

Any advice appreciated.






markiii

3,668 posts

196 months

Wednesday
quotequote all
yes, subject to to the one you want to move it to accepting transfers in. Not all do

mikeiow

5,496 posts

132 months

Wednesday
quotequote all
Inspectorclueso said:
This may be a basic one but I can't find a clear, simple explanation as yet !

My situation is I put £20k into a Santander fixed rate cash ISA in the 23/24 tax year. That has just matured and I now have the £20k plus interest sitting in the Santander cash ISA which is only paying 1.2%.

For this year i.e. 24/25 I've opened another Cash ISA (trading 212) with another £20k paying 5.2% (or thereabouts).

I have no previous ISAs before 23/24.

Obviously I don't want to leave the £20k Santander sitting at 1.2%. Can I move the £20k 23/24 investment into another providers ISA which pays more than Santander, given that I have opened a 24/25 cash ISA and used full allowance. I assume that I Can, otherwise how to you optimise each year and get to multiple £20k's ?

Any advice appreciated.
Absolutely yes!
This is how there are people with hundreds of thousands stored in tax-free ISA - a few years of savings.

BUT: important:
Be sure to do it as an ISA transfer - do NOT cash it in and hope to invest it.

You might be able to move it to the same one you opened for 24/25.


FWIW - my view is that cash ISAs are a waste of time unless they are for just a year or two - invest in a S&S ISA and pick a broad low cost global tracker - but that is just my opinion!

Inspectorclueso

666 posts

254 months

Thursday
quotequote all
mikeiow said:
Absolutely yes!
This is how there are people with hundreds of thousands stored in tax-free ISA - a few years of savings.

BUT: important:
Be sure to do it as an ISA transfer - do NOT cash it in and hope to invest it.

You might be able to move it to the same one you opened for 24/25.


FWIW - my view is that cash ISAs are a waste of time unless they are for just a year or two - invest in a S&S ISA and pick a broad low cost global tracker - but that is just my opinion!
Thanks for this, I'll look at this with the 24/25 provider, but note the transfer option.

RE the cash, I do need to look at a S&S for the longer term, essentially, I'm just trying to protect some cash from tax for a year or so. And I'm never keen on the downside risk on S&S, but accept that also limits upside potential !

mikeiow

5,496 posts

132 months

Thursday
quotequote all
Inspectorclueso said:
Thanks for this, I'll look at this with the 24/25 provider, but note the transfer option.

RE the cash, I do need to look at a S&S for the longer term, essentially, I'm just trying to protect some cash from tax for a year or so. And I'm never keen on the downside risk on S&S, but accept that also limits upside potential !
I was the same many years ago.
We once had a multi-year (I think 5) Virgin cash ISA when the rate seemed good….then after 5 years, realised how badly it had performed compared with our other ‘little’ S&S savings frown

Vowed never again (unless you are very likely to need the cash within that short term).
That year or two may turn into four or five, & (generally) the S&S markets power ahead at that point on average….

S&S is always about “time in the markets”.
That’s just my view/perspective/experience, FWIW: after a few decades of investing.