AJ Bell - Partial & Paper Based ISA Transfers

Investing
1

I have opened a cash ISA with Principality with a larger amount and a smaller amount in a S&S ISA with AJ Bell. If things go to plan this year I should be able to shift more from cash savings to investments later on.

Following this I have some queries for you folks:

  1. Under the new rules I understand I could do a part transfer of the cash ISA balance to the S&S ISA (previously it would have needed to be the lot in the same tax year?)

  2. Principality only support paper based/cheque transfers I believe. Some ISA providers don’t bother supporting these. Do AJ Bell allow paper based/cheque ISA transfers in? I’d assume as they get a lot of legacy providers transferring in that they would?

Thanks in advance! I’ve asked AJ Bell too.

2

From their FAQs there’s no mention of non-electronic deposits.

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3

Hmm - does this not relate more to new money rather than transfers?

Let’s see what they say I suppose. I might find another cash ISA provider if they don’t. So far I’ve only done £1 to it, I’m waiting for an activation code.

It’s good under the new rules that me opening the first one doesn’t block me from opening another! (I’m aware I’m within my 14 day cancellation rights for Principality still but yeah!)

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4

What is like, the new ISA rules. Obviously I’m not a tax resident this year (I think) to benefit from this, although actually thinking about it, I don’t get why citizens abroad can’t dump unlimited amounts into ISA (specifically UK equities might be something that makes sense for Hunt’s recent goals)

5

Current year contributions can be transferred in part - previously it had to be in full

You can pay into more than one type of cash isa or stocks and shares isa - so long as you don’t exceed 20k

No isa declarations

5k British ISA came in the later budget (on top of the 20k) - its not available yet

6

More than one provider too, which is very useful for DD generation purposes!

7

What I have found interesting - is the BS I’ve looked at have said “you can’t pay into two different cash ISA’s with us - but you can with someone else” which I’ve found a bit odd!

8

They’ve not all revised their rules yet. Legally, you can do It though, just maybe not yet with all providers

On your earlier question I believe that AJ Bell got a cheque from another SIPP provider and were able to cope with that for me.

9

Yes, you are. If you already have an ISA you can transfer it whilst you’re abroad.

You just can’t open a new one. There’s no point in being able to do so as you won’t pay UK tax whilst you’re abroad.

10

That’s good to know, thank you

11

If it’s the Online Bonus ISA that you’ve opened, it’s a Flexible ISA. This means that you don’t need to transfer at all - you can just withdraw some cash from the ISA and pay it into the A J Bell ISA.

12

Good point, AJ Bell replied saying they don’t support partials yet, but they do accept paper based like you said

13

Hi Mike,

Sorry just to get my head around this, if I withdraw from Principality and add it to AJ Bell - won’t this use up an additional part of my ISA allowance as I’m not putting it back into the same place?

Or am I mistaken?

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14

So now we have an extra £5000 a year in ISA value but it’s limited to British stocks only? Albeit not able to use it yet

15

Of course there’s a want for it! If I have 20k a year I could put away into the stock market as an expat I would really like to start protecting it while I’m outside of Britain. Assuming you go back.

Don’t sell the stock, no gains to be taxed abroad either. Go back and defer the sales :grin: until back in Britain!

16

Yes I don’t think any platform providers etc will have set up the infrastructure yet

18

No - if you withdraw from a flexible ISA you can put it back into any ISA (even if it’s it not flexible) so long as you put it back in the same tax year.

I’m doing this with a Chip flexible ISA this year. I’m going to withdraw £1000 every month and pay it into my HSBC S&S ISA (which isn’t flexible).

2 Likes
19

Wow I never knew this! Mind blown :exploding_head:

In essence then, as this ISA is flexible the new rules on partials wouldn’t really have mattered for me anyway!

Would you have to keep the flexible ISA withdrawn from in the first place open for auditing purposes?

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20

I’m not aware that you have to keep it open but I’ll probably keep mine open as an option for next year.

2 Likes
21

Great, I will do the same. Well I have a sum to add to Principality. Until a certain date I’ll be saving into it monthly too, it’s great to know that later on I can withdraw some and reinvest it or save it elsewhere should I wish!