Move un-invested cash from another ISA to Freetrade

Help 👋
1

I have 2 ISA’s from different tax years, one of them being Freetrade. FT is the only one I have paid into this tax year.

In my other ISA I have a fair amount of cash which is not being invested at the moment and would like to move it to Freetrade to make use of the savings in dealing fees.

How can this cash be moved to Freetrade? 1) withdraw and pay into FT (i have only ever paid into FT this tax year anyway) or 2) use the transfer form and wait X days/weeks for it to be transferred

Note, it’s just cash, not investments I want to move across. I can’t find any information out there that answers this query.

2

Since you already have a ISA here with FT, it’s best to withdraw from the other ISA and add it here.

1 Like
3

Fantastic! I thought I could do this but didn’t want to break any rules on withdrawing and depositing alsewhere.

4

You can withdraw funds from your other ISA provider, but this will take it out of the tax free ISA wrapper. If you then add this to FT they will count as new ISA subscriptions for this tax year.

If it’s important to you that this cash keeps its ISA status to maximise your ISA allowance this tax year, you should look into whether your other ISA provider allows partial ISA transfers out (some only let you transfer your entire ISA). If so, just fill in the Freetrade ISA transfer form and put down the amount in cash you want to transfer.

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5

All withdrawals from Stocks and Shares ISA are free of tax , be it profits, interest, or dividend income .

6

It’s only in the region of £5k so it’s nowhere near the allowance limits. Does it make a difference then?

7

Yes, it would be free of tax, but once it’s out of the previous ISA it’s just normal cash again.

Therefore paying it into the FT ISA only works if Pritesh still has a remaining allowance in the FT ISA larger than the cash that would come across from the previous provider. And he doesn’t want to use that remaining FT allowance for new cash.

By transferring the old ISA into the FT ISA any remaining FT allowance for this year could still be used for new cash.

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8

Good shout guys,

Over to you @Prits9 to clarify

What’s your remaining allowance in FT for 2020-2021?

Cheers

9

Don’t withdraw and pay in! That’s shocking advice.

Transfer it.

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10

Just to add - the £20k allowance applies to all your combined ISA subscriptions in a tax year, not just ISA subscriptions into FT. You may or may not have subscribed to a cash ISA and/or an IF ISA this tax year as well.

If across all your ISAs you have a total of £5k or more allowance remaining this tax year, then taking the funds out of your other ISA and subscribing to your Freetrade ISA won’t take you over the allowance limit.

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11

I have 18k allowance into FT.

I want to take out £5k from ISA 1 and move to my FT ISA.

By doing so, i’d still have £13k allowance? and I don’t plan on adding £13k before April anyway.

12

Yes, that’s correct, 13k left. In this scenario @thinking_hydrogen 's advice was correct.

Perhaps best to check the interest rate with your current provider and FT with and without the Plus option to see which is best and to help determine if holding cash is your best investment option though.

13

Unfortunately I don’t get diddly squat in my other ISA for cash holding.

So, withdraw and deposit to FT! Quick and easy too.

Thank you everyone for this! Much appreciated.