Proposed ISA reforms from April 2027 remain subject to final legislation and HMRC guidance. While details are still being finalised, you may find it helpful to identify clients who currently hold significant cash or cash-like assets within Stocks & Shares ISAs and consider whether their existing arrangements remain aligned with their objectives.
Cash can play a valuable role within an investment portfolio by providing liquidity, supporting short-term spending needs and offering a temporary home for funds awaiting investment. However, it can be helpful to review larger cash holdings periodically, as inflation may reduce their purchasing power and clients could miss opportunities for longer-term investment growth.
Areas that may warrant attention include:
Clients holding significant cash balances or cash-like investments within Stocks & Shares ISAs.
Term deposits and other cash products approaching maturity.
Portfolios where regular withdrawals, recent subscriptions or rebalancing activity can result in higher cash balances over time.
Clients who may benefit from using both a Stocks & Shares ISA and a Cash ISA, where appropriate to their circumstances.
Ensuring sufficient cash remains available in both wrappers to cover any charges or potential auto-sell requirements. Alternatively, consider using fee payment wrappers.
Reviewing your clients cash report is available from your Transact login home page and through the Reports tab, enabling you to review cash holdings across all wrappers, including ISAs, pensions, bonds and General Investment Accounts.
For clients wishing to retain higher levels of cash, Transact supports transfers between Stocks & Shares ISAs and Cash ISAs held by the same investor. Assets, including term deposits, can be transferred between ISA wrappers without affecting the deposit term, interest rate or maturity date. Use Guided Apps (via Housekeeping > Open Wrapper) to produce the forms for this process. The Guided Application process will produce a T004. However, where a term deposit is to be moved, then this must be instructed manually (i.e. with a covering letter). Please contact your regional team for guidance on moving the term deposit. Remember transfers do not fall within ISA contribution limits.
To support you in monitoring cash levels, we have recently reviewed the cash rebalance threshold and next month we are introducing an optional flexible threshold down to 0.5%, helping you manage portfolios where cash balances may increase through client activity, withdrawals, asset sales or portfolio rebalancing.
Quick ISA transfer reminders
Where transfers are required between Transact ISA wrappers:
Transfers can be made in cash or in specie. Only cash and term deposits can be transferred into a Cash ISA.
Transfers may be full or partial, although current-year ISA subscriptions must be transferred in full.
Ensure the receiving wrapper is open before submitting instructions.
Consider any pending trades, charges or maturing term deposits before requesting a transfer.
Clear and complete instructions will help avoid delays.
Prepare and submit the required documentation via Guided Apps
Complete an illustration and obtain client authority on the following documents:
T004[D] ISA Transfer Authority
T001[D] Portfolio Application Form
Upload documents via Transact Online via Tools> Upload Documents
If you require any assistance, please contact Sales & Online Support on 020 7608 5387 or speak to your