ISA guidance - Intelligent Money Private Clients

[markiii]

think he means can he contribute 10k to each of 2 open cash iSAs

[highpeakrider]

I actually have IM and Vanguard for investments, but also a MARCUS ISA for cash savings.
I wasn't sure how to manage ISA's between the three.

However to make it simple I'm moving my Vanguard investment to IM.

So that seems to mean over the next year I can grown by £20K between IM S&S ISA and Marcus Cash ISA.

[JulianPH]

markiii said:

think he means can he contribute 10k to each of 2 open cash iSAs

Which is a yes!

[JulianPH]

highpeakrider said:

I actually have IM and Vanguard for investments, but also a MARCUS ISA for cash savings.
I wasn't sure how to manage ISA's between the three.

However to make it simple I'm moving my Vanguard investment to IM.

So that seems to mean over the next year I can grown by £20K between IM S&S ISA and Marcus Cash ISA.

Just to clarify, you can contribute up to £20k across both, they can grow (or fall, with S&S ISAs) by any amount.

[LordGrover]

Perhaps a naive question...
Is it sensible to take money from a pension to invest in a stocks & shares ISA?

[pingu393]

LordGrover said:

Perhaps a naive question...
Is it sensible to take money from a pension to invest in a stocks & shares ISA?

Why not invest them in S+S within the pension?

[Intelligent Money]

LordGrover said:

Perhaps a naive question...
Is it sensible to take money from a pension to invest in a stocks & shares ISA?

Hi LordGrover

Unfortunately this very much a "it depends" type situation. There are some circumstances where it may make sense, for example, drawing pension benefits in years of low income when tax on the drawings will be low and sheltering this in ISA's to draw down in later years when your income may be higher.

There are also reasons that you would not draw and re-invest, an example being if you draw the pension funds as income you may trigger MPPA and reduce the contributions that you can make to a pension in future years.

If you want to drop me a mail at [e-mail] with some more detail on what your situation I will be happy help where I can.

Cheers

Nik

[drmike37]

A new question, if I may?

I have a Cash ISA to which I contributed in previous tax years. I transferred this ISA to a new provider on 6th April 2022 (and consolidated a couple of historical stragglers). I have not contributed anything beyond the transfers to this Cash ISA this year.

I also have a S&S ISA (with a different provider). I have contributed to this S&S ISA this year.

I have a >5yr horizon and can see that cash is depreciating fast at the moment. My spread is currently 10:4 cash:S&S.

Can I transfer *some* of my Cash ISA savings to my S&S ISA? Note I do not want to move it all. Would it make a difference if I had contributed to my Cash ISA this tax year?

The reason I ask is because the rules on gov.uk seem a little ambiguous to me.

[markiii]

you can transfer all of it if you wish. Transfers aren't counted as new funds so not affected by the annual cap

[Intelligent Money]

drmike37 said:

A new question, if I may?

I have a Cash ISA to which I contributed in previous tax years. I transferred this ISA to a new provider on 6th April 2022 (and consolidated a couple of historical stragglers). I have not contributed anything beyond the transfers to this Cash ISA this year.

I also have a S&S ISA (with a different provider). I have contributed to this S&S ISA this year.

I have a >5yr horizon and can see that cash is depreciating fast at the moment. My spread is currently 10:4 cash:S&S.

Can I transfer *some* of my Cash ISA savings to my S&S ISA? Note I do not want to move it all. Would it make a difference if I had contributed to my Cash ISA this tax year?

The reason I ask is because the rules on gov.uk seem a little ambiguous to me.

Hi drmike37,

HMRC rules will allow you to transfer some or all of your cash ISA into your S&S ISA. This is treated as a transfer of funds that are already within the ISA wrapper so don't count as new contributions.

You would need to check that you current providers allow partial transfers out for your cash ISA and accept partial transfers in for your S&S one.

Cheers

Nik

[Simpo Two]

Intelligent Money said:

HMRC rules will allow you to transfer some or all of your cash ISA into your S&S ISA. This is treated as a transfer of funds that are already within the ISA wrapper so don't count as new contributions.

You would need to check that you current providers allow partial transfers out for your cash ISA and accept partial transfers in for your S&S one.

This is a very good point. Some providers don't offer things even though the rules allow it. On partial transfers, for example, Fidelity say they don't offer it due to 'insufficient demand'.

[Chicken_Satay]

If I have £85k in a cash ISA currently, transfer it to a higher paying provider, am I right in thinking I can still open another cash ISA with another provider, so long as I don't put in more than £20k for the current tax year? I don't want to have more than £85k with the same provider, given it won't be covered by the FSCS compensation scheme.

[dingg]

Chicken_Satay said:

If I have £85k in a cash ISA currently, transfer it to a higher paying provider, am I right in thinking I can still open another cash ISA with another provider, so long as I don't put in more than £20k for the current tax year? I don't want to have more than £85k with the same provider, given it won't be covered by the FSCS compensation scheme.

Yes 20k allowed each year

[MrOrange]

Quick question: What are the fees on this (PHE specifically), and how often are they deducted?

[CoopsIM]

MrOrange said:

Quick question: What are the fees on this (PHE specifically), and how often are they deducted?

Good afternoon

The fee for PHE is 0.87% and it's accounted for daily in the valuations. It's taken on a monthly basis.

Kindest regards

Coops

[Intelligent Money]

CoopsIM said:

MrOrange said:

Quick question: What are the fees on this (PHE specifically), and how often are they deducted?

Good afternoon

The fee for PHE is 0.87% and it's accounted for daily in the valuations. It's taken on a monthly basis.

Kindest regards

Coops

For clarity 0.87% p.a.

Cheers

Nik

[tighnamara]

You can ( if I remember correctly) remove funds from an ISA and place back with no tax implications if carried out within the same tax year ie. 80K out / 80k in between April 6th - April 5th of the same tax year.

If you were looking to use funds from an ISA to reduce interest in an off set mortgage (for a period & not looking at market movement) could you remove £xxx and replace (cycle year on year) each tax year allowing you to keep the funds available to be fully invested tax free.

Taking away any market movement the aim would be to have this money as being available to keep invested tax free whilst still having a benefit of using as off set for a period of time before paying down mortgage with pension tax free funds.

Crux of it:

Use ISA money to keep mortgage down (off set) whilst remaining in a tax wrapper (move back and forth year on year)
Pay off mortgage via 25% tax free pension part
Re- Invest ISA money and still have available to build tax free during later years

I am probably missing something and its not a very bright idea

[Intelligent Money]

tighnamara said:

You can ( if I remember correctly) remove funds from an ISA and place back with no tax implications if carried out within the same tax year ie. 80K out / 80k in between April 6th - April 5th of the same tax year.

If you were looking to use funds from an ISA to reduce interest in an off set mortgage (for a period & not looking at market movement) could you remove £xxx and replace (cycle year on year) each tax year allowing you to keep the funds available to be fully invested tax free.

Taking away any market movement the aim would be to have this money as being available to keep invested tax free whilst still having a benefit of using as off set for a period of time before paying down mortgage with pension tax free funds.

Crux of it:

Use ISA money to keep mortgage down (off set) whilst remaining in a tax wrapper (move back and forth year on year)
Pay off mortgage via 25% tax free pension part
Re- Invest ISA money and still have available to build tax free during later years

I am probably missing something and its not a very bright idea

Hi Tighnamara

If we accept your “ignoring market movement” criteria then you haven’t missed anything.

It is the market movement against interest rate movement that will determine which is the most efficient place to hold the funds. Crystal ball time!

Cheers

Nik

[tighnamara]

Intelligent Money said:

Hi Tighnamara

If we accept your “ignoring market movement” criteria then you haven’t missed anything.

It is the market movement against interest rate movement that will determine which is the most efficient place to hold the funds. Crystal ball time!

Cheers

Nik

Thanks Nik

[Spathodus77]

Hi, please can someone help with this question. I have a stocks and shares ISA and enjoy researching companies and selecting those I invest in. For simplicity let’s say my provider charges £10 per trade. If I invest £20k in the ISA and then buy £490 of shares in 40 different companies I will be charged £400 for the trades. This £400 is taken from any cash in the ISA which is not invested at that point. As this cash was never invested can I add another £400 into that ISA in the same tax year? Or would this be viewed as me investing £20,400 in the ISA despite the fact that £400 was never invested?
Thanks in advance.