Should I transfer my account as cash or investments?

When you transfer your account, you choose whether to transfer your investments as they are or sell them to transfer as cash. Both approaches have their pros and cons. Here's what you should consider.

Transferring in cash

If you sell your investments to transfer them as cash, you’ll be out of the market until your transfer is completed. If markets fall, this will work in your favour. But if markets rise, you’ll miss out on those potential gains. There’ll also be a delay if you choose to transfer your account as cash but haven’t yet sold your investments. If this is the case, we’ll contact you to remind you to sell them.

Transferring your investments

If you transfer your investments as they are, you’ll first need to check if your new provider can hold all of them. If they can’t hold an investment, you can sell it before the transfer to transfer it as cash. Of course, you can also continue to hold it in your AJ Bell account.

Capital gains tax

You should consider any potential capital gains tax (CGT). ISAs and SIPPs are free from CGT, but Dealing accounts aren’t. So, if you sell investments in a Dealing account and your gains exceed your tax-free allowance, you'll have to report and pay the CGT you owe.

Timescales

Transferring investments takes longer than transferring cash. During the transfer, you won’t be able to buy or sell any investments, so you should make sure you’re happy with the investments you hold before you begin.