As the end of the tax year approaches, investors will be looking to utilise their tax-free ISA allowances before the deadline on April 5th.
While now appears to be a good time to invest for long term investors, we appreciate that some clients will want to reduce their exposure to market fluctuations during this period of relative uncertainty.
We have launched the ability to hold your portfolio as cash within your ISA wrapper to ensure the money retains its tax beneficial status even if you do not currently wish to be in the markets. You can then move your portfolio back into a different risk profile when you feel more comfortable.
If you are interested, follow the steps below to change your risk profile:
– Head to the website dashboard. Alternatively, this will be available via the mobile app from Thursday 2 April. (Please note it will only be available on the latest version of the app, so please make sure yours is updated);
– Log in to your account and access the ‘Advice centre’;
– Press the ‘edit’ button of the profile you wish to amend the risk profile of;
– At the next screen you will be provided with details of your current risk profile and all of the available profiles, including the cash park one;
– Select the cash park profile, which is indicated by the “£” sign (or a different risk level if you prefer);
– Take note of the information provided and confirm the selection at the bottom of the page.
– If you are adding new money to the portfolio you will need to do so as soon as possible and in line with the payment deadlines outlined in the “add funds” pages for this tax year.
Important things to note:
- Each portfolio can only have one risk profile. As such, if you have any investments currently within a portfolio and you edit the risk profile, this will result in the existing investments within that portfolio being adjusted in line with the new risk level. If you select cash as your risk profile, your existing investments within that portfolio will be sold to cash at the next trading point.
- We advise clients that this portfolio be used as a temporary park for your money pending investment into your recommended risk level. This is not designed as a long term investment solution and your ability to reach your goals will likely be impacted by holding money in cash in the long term.
- Given this is a temporary place to park your cash during this period of uncertainty, we will not charge for holding the money as cash for the next three months (to the end of June), though reserve the right to charge for this at normal portfolio rates thereafter. Further details can be found in the Terms and Conditions.
- The cash will not earn any interest whilst in the cash portfolio.
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