Cash Savings Using Stocks & Shares ISA

Hi All,

Long time lurker. First time poster. Firstly want to say appreciate everyones contribution here.

As we all know, to meet criteria for cash savings, value needs to be above £62,500.

I currently have a stocks & shares ISA who's value is £70,000. The account is fully invested in stocks. Over the last 6 month, the entire value has always been above £70,000.

Now my question is, can I apply using stocks & shares ISA as is i.e fully invested in stock. Or does it have to be liquidated and held in cash?


The reason I am asking is an immigration lawyer told me the stocks & shares ISA as is, fully invested in stocks, is fine as cash value is clear. (From past experience I am weary of lawyers as they would always tell you want you want to hear).
His argument is based on the following:
Appendix FM Section 1.7 Appendix Financial requirements state the following:

Pg 52 .. 7.4.3 .. "NO 6: 6 The savings are held in cash (or their cash value is clear)" - Why would there put cash value if all they wanted was cash only

Pg 53...7.4.4... "For example, in the UK a ‘stocks and shares’ Individual Savings Account (ISA) does meet
the definition of a savings account and the funds can be considered as cash savings if
all the requirements above are met."

Pg 53...7.4.8.. This is where I personally feel the problem is. My understanding is that whilst a stocks and shares ISA is classified as a savings account, for it to meet the financial requirements, it needs to be in cash. So stocks can be held for the prior six month but it needs to be liquidated and in cash at the date of application. Is this view correct. The lawyers view is that because there is semi colons in the following, it is three different options and thus stock is fine : "The ownership of the funds in the form of investments, stocks, shares, bonds or
trust funds; the cash value of the funds in that form at or before the beginning of the
period of 6 months prior to the date of application; and the transfer of the funds into
cash, are evidenced by a portfolio report or other relevant documentation from a
financial institution regulated by the appropriate regulatory body for the country in which
that institution is operating"

Thanks in advance for any responses.

Hi,

Yes it's fine to use stocks and shares and ISA. I did this recently, no problem.

You need a valuation and statement to cover the whole 6 month preceeding period. You MUST get an original posted to you and NOT a print out of an electronic one. And yes they ARE different, usually with barcodes on the original printed ones that do not usually appear on electornic ones.

The MINIMUM balance during the 6 month period will be considered.

A multiplier is used for cash value. So if you need 18.5K income and the visa is 2.5 years you need 18.5kx2.5 in cash as the minimum balance.

I would write a covering letter to explain your holdings and you MUST include a letter detailing the source of the money e.g. "savings from employment", "profits from investments", sale of property etc.

I did this and had no problems...

eby99 wrote: ↑

Fri Mar 06, 2020 12:52 pm

The lawyers view is that because there is semi colons in the following, it is three different options and thus stock is fine

The semi-colons are there because it is a list of lists (i.e. the first sentence contains a list separated by commas). That view would neglect the fact that the last item in the list starts with "and", suggesting all items in the list are compulsory. That view also ignores the paragraph leading to that list, which states: "Under paragraph 11A(c) funds held as cash savings by the applicant, their partner or both jointly at the date of application can have been transferred from investments (including funds liquidated from a pension pot), stocks, shares, bonds or trust funds within the period of 6 months prior to the date of application, provided that:"

See paragraph 11A of Appendix FM-SE of the Immigration Rules for the exact requirement:
https://www.gov.uk/guidance/immigration ... d-evidence

See also Section 7.4.9 of the guidance document, which has some rather important details regarding the requirement. While I have not used this particular method of meeting the financial requirement and I would defer to the experience of others, the rules and guidance appear to indicate that the funds must be in cash at the time of application but can be from the sale of investments held for at least 6 months. One of the requirements is that "the savings can be immediately withdrawn" so if you are able to immediately withdraw savings held as stock, you may be ok. Again, my interpretation of the Immigration Rules and guidance only rather than "official" advice.

afdales wrote: ↑

Fri Mar 06, 2020 1:09 pm

Hi,

Yes it's fine to use stocks and shares and ISA. I did this recently, no problem.

You need a valuation and statement to cover the whole 6 month preceeding period. You MUST get an original posted to you and NOT a print out of an electronic one. And yes they ARE different, usually with barcodes on the original printed ones that do not usually appear on electornic ones.

Hi Afdales,

Thank you so much for your reply. It is great knowing you used this route and it worked.

I just had a few follow up questions if you don't mind

• It is fine to leave the account as is in stocks? No need to sell and cash up right?

• For Valuation statements, are they for each of the last 6 months or just a snapshot of six month ago and today?

• Do I have to provide the stocks I held six month ago or just the stocks I hold today? As in can I ask my ISA provider to write a letter saying my ISA was valued at £70,000 six month ago. It is valued at £72,000 today. And here is a breakdown of the stocks held as of today.