When transferring assets via cash, all your assets with your existing provider are sold and the cash is transferred to your new ISA provider. When transferring onto rplan this would be Cofunds. Once the cash has been transferred you can invest it in the same (or different) funds.
When you transfer an ISA, you keep all of its tax advantages. You can continue to contribute into the ISA once it is transferred, subject to the annual limit on contributions of £20,000 (2017/2018).
You would use the cash transfer process if:
- Your existing provider does not support the re-registration transfer process.
- Your existing provider makes a charge for re-registration.
- You plan to sell all of the funds in your ISA and invest in different ones.
There are number of things you need to consider:
- Whilst the transfer is taking place you may lose out on income or growth as your money will be out of the market after your assets are sold.
- Although rplan has negotiated no initial charges with most fund managers, depending on which funds you choose there may still be an initial charge when you invest.
- You will not have access to your ISA during the transfer period. This is normally around 10 days but it does depend on how long your existing ISA provider takes to complete the process.