dawn
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Post by dawn on Mar 5, 2016 12:08:53 GMT
So forgive me if I have mis-read the situation, but does this mean that on April 7th, I could: i) transfer all old ISA money to a flexible ISA ii) deposit 2016-2017 ISA money into a flexible ISA iii) withdraw the lot (perhaps leaving a £ in each to keep the accounts open if need be) iv) invest it in P2P v) before April 6th 2017, sell out of P2P and put it all back into my flexible ISA accounts If true, this seems like a possible way of moving "ISA-allocated money" into P2P before IF-ISAs are available (since it looks like they may well be delayed), albeit of course tax will have to be paid. If I have understood your suggestion correctly, then it doesn't work because you will have exceeded your annual allowance. If step 4 takes the money outside of an ISA wrapper then you're stuck. You have already used your 2016 - 2017 allowance in step 2, so would be barred from paying any other 'new 'money back into a flexible ISA account. I believe that from next year you can take money out of an ISA and that provided you put it back in within that Tax year it won't lose it's tax-free status.
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Post by bracknellboy on Mar 5, 2016 12:46:18 GMT
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agent69
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Post by agent69 on Mar 5, 2016 15:31:22 GMT
If I have understood your suggestion correctly, then it doesn't work because you will have exceeded your annual allowance. If step 4 takes the money outside of an ISA wrapper then you're stuck. You have already used your 2016 - 2017 allowance in step 2, so would be barred from paying any other 'new 'money back into a flexible ISA account. I believe that from next year you can take money out of an ISA and that provided you put it back in within that Tax year it won't lose it's tax-free status.I stand corrected (must have been down the pub when the announcement was made).
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webwiz
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Post by webwiz on Mar 5, 2016 17:24:28 GMT
Becarefull if I remember correctly HL will charge you for transferring an ISA from them to another provider so check HL small print first. I think they charge £25 to transfer out and another £25 if you actually close the account. For me that's less than one week's interest on SS. A no brainer. My Stocks & Shares ISA has produced roughly zero return in 7 years. On SS that should double in 7 years time. It will only take 6 years and 2 months to double if you have no defaults. Mind you, as that period likely takes in the next downturn that's a big 'if'.
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webwiz
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Post by webwiz on Mar 5, 2016 17:35:08 GMT
So forgive me if I have mis-read the situation, but does this mean that on April 7th, I could: i) transfer all old ISA money to a flexible ISA ii) deposit 2016-2017 ISA money into a flexible ISA iii) withdraw the lot (perhaps leaving a £ in each to keep the accounts open if need be) iv) invest it in P2P v) before April 6th 2017, sell out of P2P and put it all back into my flexible ISA accounts If true, this seems like a possible way of moving "ISA-allocated money" into P2P before IF-ISAs are available (since it looks like they may well be delayed), albeit of course tax will have to be paid. This seems to me to work. The advantage is that you will get p2p rates in the period from 7.4.16 to when IFISas come in, but protecting the tax free status. Minor comments: i) provided the old ISAs are in principle transferable ii) this can be the same ISA as in i) and it will be easier to set up if you do it before step i) v) this may not be as easy as it sounds. p2p tends not to be very liquid.
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stevio
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Post by stevio on Mar 5, 2016 20:46:49 GMT
Becarefull if I remember correctly HL will charge you for transferring an ISA from them to another provider so check HL small print first. I think they charge £25 to transfer out and another £25 if you actually close the account. For me that's less than one week's interest on SS. A no brainer. My Stocks & Shares ISA has produced roughly zero return in 7 years. On SS that should double in 7 years time. I must have invested in the same HL ISA paying zero over 7yrs! I don't know if I am better off or worse off, but I was told by HL if you leave £50 minimum in cash in the HL ISA then it is not closed and you don't get charged the closer fee Think there cash rates are 0.05%, with no fees on holding cash, so guess rather than -100% you get 0.05% on £50! I also sold my (poor performing) funds and took the money out as cash. I know I lost the ISA allowance, but I could then put it straight into P2P. Maybe the transfer would have been better, but I am too inpatient!
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mikes1531
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Post by mikes1531 on Mar 10, 2016 2:26:54 GMT
So forgive me if I have mis-read the situation, but does this mean that on April 7th, I could: i) transfer all old ISA money to a flexible ISA ii) deposit 2016-2017 ISA money into a flexible ISA iii) withdraw the lot (perhaps leaving a £ in each to keep the accounts open if need be) iv) invest it in P2P v) before April 6th 2017, sell out of P2P and put it all back into my flexible ISA accounts If true, this seems like a possible way of moving "ISA-allocated money" into P2P before IF-ISAs are available (since it looks like they may well be delayed), albeit of course tax will have to be paid. What's the point of Step 2? Why not just wait until 4/Apr/2017 to make your 2016/2017 ISA contribution? (Or earlier if the IFISA becomes available.) ISTM that delaying the 2016/17 contribution also has the advantage that if some other provider starts offering a more attractive flexible ISA than what is available on 7/Apr/16 you'd be able to open one of those. What am I missing?
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