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Ologhai Jones

Wondering About The New I S A

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Since the announcement of NISAs yesterday, I've been wondering whether they may represent a solution to a slight niggle I have with the current S&S ISAs.

For part of my S&S ISA money, I am experimenting with a little trading strategy (in a self-select S&S ISA) that, at certain points, could cause me sell some shares and not necessarily re-invest in other shares immediately. In principle, this could (although hasn't yet) leave me with a substantial proportion of this pot of money sitting around as cash within the ISA, perhaps even for a couple of months or more before the conditions arise for me to decide to re-invest.

With current ISAs, this money waiting to be re-invested just sits there earning no interest.

I wonder whether, with NISAs, whether anyone will offer what would currently be a self-select S&S ISA but with any cash that isn't currently invested earning some interest (as the cash and S&S separation will no longer apply with NISAs)?

Alternatively, now that cash can be transferred freely between NISAs (again with no separation between S&S and cash ISAs), I wonder if I would be able to transfer spare cash from a S&S NISA to a cash NISA while I'm waiting for what I consider to be the correct time to re-invest the cash in shares.

Any thoughts about this possibility?

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No idea, we need more details!

Also, it starts 2014/15 tax year, but not in effect till June - so how does that work? Usual amount can be paid in immediately, then topped up to the new allowance in the summer?

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I suspect something like this will be implemented. My Fidelity S&S ISA already has a 'cash park' which you can leave money in for short periods of time before buying funds. It pays a very small (taxable) rate of interest, I'm kind of expecting this will effectively become untaxed and hopefully pay a more competitive rate. It would seem the easiest way to handle the new rules.

In terms of the rate not rising until July, the discussion on the radio seemed to be 'existing limits until July, then you can top up to 15k'. At that point I think you could also shift all of your S&S ISA into cash, should one want to.

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  • 407 Brexit, House prices and Summer 2020

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