ISA charges - what would happen if

Hey,

So, I’m very close to simply liquidating my assets and heading to 212. The lack of features on Freetrade (and the paywalls) have really put me off the platform.

Stupidly, I opened an ISA (with absolutely no need for one, I don’t earn nearly enough from my stocks to need the tax break). There’s no way to convert this account back to a non-ISA. Why?

Furthermore, what would freetrade do if I simply cancelled the card that auto-pays for the ISA? Would they close the account or would I just end up having an ISA for free?

I think it’s ludicrous that you’re essentially locked into the ISA even after 12 months.

I assume HMRC rules about how ISAs should function.

I assume they’d invoke section 6.2 of the T&Cs

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You didn’t convert it to an ISA in the first place. You have two accounts, so there’s nothing to convert it back to.

ISAs have special rules, you cannot transfer assets through them unless it’s an ISA to an ISA via an ISA transfer process.

As for 212, I suggest you read their terms and conditions carefully and understand who holds your assets (hint, you have no idea where your assets are or who holds them and potentially lose your ring fencing via a nominee company)

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I don’t see what the problem is here. You have opened an ISA, it’s not for you, so close it?

I don’t believe T212 has re-enabled account opening yet, so I guess you can either move your money to the Freetrade GIA instead or go to another provider.

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