Designation Of Isa Money

[Coppit]

I have sold ISA stocks and shares and the money in an ISA wrapper has gone into my bank a/c. The fundholder assures me that once it reaches my bank it is no longer associated with stocks and shares as such and so I have tried to add it to my building society cash ISA. But they say it is not cash but is still stocks and shares money. Who is right?

[Old_Geezer]

My pure guess is since the stocks and shares have been sold, and the ISA that used to hold the past investment is no more, then it's simply cash to be reinvested anywhere you wish, or spent. There's not some formal paperwork that needs to be completed is there ?

[Coppit]

The sale was done over the phone and I will get a contract note. The investment with the BS is being done by way of a form from the BS. I have great worries that between them, what will happen is that I'll lose the ISA benefit the money has accumulated over the years.

[fiction-factory]

Not sure what you mean by 'lose the ISA benefit'. Once you close an ISA it's finished. If you transfer it then it remains in an ISA wrapper.
Which bank account has it gone into? If it;s your normal bank account then it's just cash. But my ISA S&S has a linked cash account which is within the ISA wrapper, If yours is the same you then need to transfer it from there to your cash bank account.

But have you already contributed to your S&S ISA this year. Certainly with cash ISAs you can only pay money into one in any tax year. If the rule also includes S&S ISAs then maybe your Cash ISA manager is saying you have to wait until next tax year before paying it into the cash ISA

[Coppit]

The ISA has not been added to for some years but the capital has increased due to market movement. It is not being closed, just some of the stock being converted into cash as a precaution against the Corvid effect.
The money, in its ISA wrapper (so I was told) is going into my usual bank a/c and I have been assured by the fund manager that I will receive a contract note making its status clear - but I'm beginning to have doubts as to the validity of that.

[fiction-factory]

I'm not sure what you mean by "add it to [your] building society cash ISA". Is it the same BS who held the S&S ISA? If so I'm not following this- the fund manager says it will be in the ISA wrapper but the BS says it won't? It's what the receiving bank /BS think that matters

[ubasses]

You don't make it clear, in your original post you say, the money has gone into your bank account, in your third you say it is going into your bank account.
To comply with ISA rules the sale proceeds need to be transferred directly into a cash isa account.
If the money is there already it obviously is no longer in S&S and you will need to speak to the B/S when the contract note arrives and ask them to find out if they can transfer it over with the proof.
If the money has not arrived, the sale proceeds have not yet been remitted and you need to get the Investment Co to ensure they put the correct account details on the paperwork.

[Coppit]

Lack of clarity regretted. The money is currently on its way from my S&S ISA to my BS cash ISA. It is the BS who is obstructing the money transfer to them and it looks as if what they say is what matters.
Unfortunately, I asked the S&S provider for advice about the procedure; I should have checked with the BS.

[fiction-factory]

Maybe you can't mix and match ISAs in that you can't transfer from a S&S ISA to a Cash ISA within the ISA wrapper. I think different rules and limits apply, but as ISAs are not really attractive now I've not kept fully up to date with ISA rules

[fiction-factory]

Okay, it seems you can hold both types of ISA. I noted this though:
"All ISA providers have to allow transfers out, but they don’t have to allow transfers in." Maybe your BS manager won't accept the transfer as an ISa

[fiction-factory]

Might be worth reading this.
https://www.which.co.uk/money/investing/stocks-and-shares-isas/stocks-and-shares-isa-transfers-aj83t7g7p0vw#headline_4

[ubasses]

OK the money is currently in transit, the B/S can't do anything until it actually arrives there. How are they blocking it?

[Coppit]

The deal was arranged on Monday, the sale took place Tuesday and I was told that it would take around 4 days before the money reached my bank a/c.
What I've now just done, as I'm way out of my depth is to pass this to my FA who handles all the rest of my money and who is now trying to rescue something from this MF.
Thanks for all responses and help.

[fiction-factory]

The problem I see is that you say it will be in your bank account. To preserve the ISA status it needed to be transferred direct to your Building Society ISA rather than into your bank account. However that doesn't explain why the BS manager is (you believe) saying it is still stocks and shares money.
Anyway, I hope your FA sorts it and doesn't charge too much