I have cash ISA that is maturing next week. Can I transfer a cash ISA to a Stocks and Shares ISA with another provider? Will I still keep my £20,000 annual allowances for Stocks and Shares ISA?
Hi Shreekant! Yes, you can transfer your cash ISA into a Stocks and Shares ISA and keep this year’s 2020/2021 ISA allowance provided that the cash ISA is from a previous tax year. Not all ISA providers have to allow “transfers in” however. If the cash ISA is maturing from a previous tax year then you can choose how much you wish to transfer into a S&S ISA. To confirm, if you withdraw the funds from your matured cash ISA this year and then invest into a S&S ISA, you will lose the allowance – it must be a transfer.
Please note that you cannot open two different ISAs that are of the same type in the same tax year (tax years run April to April). For example, opening two Stocks & Shares ISAs in the same year is a “no no”! You can however open a Stocks & Shares ISA and a Cash ISA within this tax year and split your £20k ISA allowance between the two, for example, invest £15k into a Stocks & Shares ISA and £5k into a Cash ISA.
With ISAs it’s a “use it or lose it” policy. If you don’t fully utilise your £20,000 this year, it’s not rolled over to the next. Take a peruse through our Best Buy table here to see which provider may be best for you. Hope that helps clear up your ISA situation!
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