Hi all 
Sort of a newbie question I guess, not sure if anyone have been through this.
I want to open a Stocks & Shares ISA with Freetrade, and for that I’d like to withdraw the money that I have in a cash ISA that I have in Monzo.
If I transfer the £16k that I have in that cash ISA to the new Freetrade one would that blow up my allowance for this year?
First time posting here, so apologies if I’m not using the right category.
Thanks!
ISA Transfer - Transfer your stocks and shares ISA | Freetrade you can transfer any isa, just submit the form (it can take up to 6 weeks to do this though)
If you were to withdraw then fund then that would affect your ISA allowance for the year. So depending on the time that takes you could affect next years allowance (from Apr 5th)
Wise.
It would if you withdrew it and put it in FT - and remember you can only open fund one ISA per year.
I know you can transfer a stocks and shares ISA over - which would mean you use no allowance and would solve your problem - but I am not sure if you can move over a cash ISA. Maybe worth clarifying with FT unless someone else has done it and can?
No, if you transfer it won’t affect your allowance. If you’ve contributed to it in this year, you’ll have to wait until 6th April to fund your freetrade one with anything other than the transfer. If the transfer happens after 6th April, you’d still have your full allowance for the year remaining.
The rules are that you can only fund one ISA in a tax year. Transfers are not considered funding, because you’ve already funded it into another ISA.
I might have understood but even if all the 16k from the Cash ISA was funded this year would you not still have 4k available to put into Freetrade before tax year end? ( assuming the transfer was complete by then ).
Key here is to transfer / not withdraw.
Since you can only pay into one ISA in any tax year, you could not fund the freetrade one in this tax year if you have paid into the other one already. If your £16k came from previous tax years, you’d still have your full allowance for the next 2 weeks, and your full allowance next month, since transfers do not affect that.
One ISA of each type, that is. You can’t contribute to two different stocks & shares ISAs in the same year, but you can contribute new money to a cash ISA, an IFISA, a stocks & shares ISA, and a lifetime ISA all in the same year.
One of the examples on the following gov.uk web page is: “You could save £11,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year.”
Thanks for that. Didn’t realise the flexibility if using different account types.
That depends on when the money is likely to be needed!
Thanks everyone, I realised that I’ve actually funded it with £11k this tax year, so I still have £9k to put in the new one I’m opening with Freetrade and then wait for April to put more money in it 