S&S ISA/MoneyBox

magicd · 7 February 2018 at 12:24PM

Hi all,

I'm hoping you can help me resolve a little issue I've created for myself; around August last year when I didn't have so much disposable income and after some reading on this forum I setup an account and subsequently a S&S ISA with MoneyBox and began drip feeding around £80-100 a month in and have been since.

I've now got a little more disposable income (I realise I have the debt tracker in my sig however I'm due a bonus both this payday and next and that should dramatically reduce that amount) and was looking to setup an account with HL after April 6th to begin paying around £150/200 a month in which I was then planning to split between a Global tracker and low-cap fund.

I didn't however realise you could only pay into one S&S ISA per financial year - which essentially means [if my understanding is correct] I either cash out/transfer the MoneyBox funds over to HL and then start paying in there (but I'd need to do this before April 6th?) or I keep MoneyBox, but then as soon as I've paid into it after April 6th I'm essentially committed to it until the new tax year 2019(?).

I'm a little confused by my options and best choices so given the wealth of knowledge here I was hoping for some input/advice, any appreciated

le_loup · 7 February 2018 at 12:44PM

You can transfer at any time. But you can only have one live (active) (paid into) account at any one time.
If you start a new account after year end that does not preclude a transfer into that account from an old account.

Lokolo · 7 February 2018 at 12:48PM

Example

You can put money into MoneyBox this month.
You can open HL account on April 6th.
You can put new money into HL on April 6th.
You can keep your MoneyBox account, you can trade. You cannot put new money into MoneyBox.

or

You can open a HL account and deposit nothing now.
You can transfer from MoneyBox to HL now.
You can then deposit money into HL.
Once transfer complete you cannot deposit money into MoneyBox.

magicd · 7 February 2018 at 1:01PM

Thanks both - Lokolo that's made the options much clearer thank you, and that's about what I thought.

I don't know which of those is the 'best' option though? I assume the latter (despite meaning I'll be down around 3% on my MB account) because then I don't have a further year of paying into MoneyBox and have more control with HL?

bowlhead99 · 7 February 2018 at 2:26PM

magicd wrote: »

I don't know which of those is the 'best' option though? I assume the latter (despite meaning I'll be down around 3% on my MB account) because then I don't have a further year of paying into MoneyBox and have more control with HL?

If going forward all your new money is going to HL due to more options available or better pricing or better service etc, it doesn't really make sense to keep a few scraps of different investments in MB; and MB are no cheaper, so I would move the lot, for simplicity.

Don't worry about being "down" on the account you're moving from. That just means that the market values those investments lower than it did when you bought them. When you move the money over to HL and buy new investments, you will likely be buying them at a lower cost than you would have bought them for if you had been buying at HL back in the day when you were buying at MB. Markets go up and down all the time.

Obviously if you sell investments for less than you paid for them, and spend the money on your day to day lifestyle or paying back your debts or whatever, you have 'lost' money.. But if what you do with the money that you got from selling investments at a low value, is take the money to HL and just buy a pile of other investments at low price... then you haven't actually committed financial suicide, and you still have a pile of investments that you effectively 'paid' £100 for and are currently 'worth' £97. But now they're going to be investments you actually want and will add to. Sounds fine.

magicd · 7 February 2018 at 3:13PM

Thank you bowlhead. Your 3 replies have really clarified the situation for me and I'm going to go with the above, transfer the existing over to HL to re-invest.

Thanks again all, knew this forum would be able to provide the guidance!

scoot65 · 7 February 2018 at 4:52PM

This is an interesting thread for me as it's made me think about my S&S ISA plans for the next financial year.

I've just opened and traded (awaiting execution) a VLS60 under the S&S ISA wrapper, I put full 20k into it.

I have a 30k cash ISA which matures in August and I had planned to do the following....

After April 6th invest 10k into the VLS60 ISA and then in August open a HSBC GS ISA with the remaining allowance of 10k and also transfer in the 30k cash ISA, investing the 30k in the HSBC GS fund.

It looks like I cannot pay into the VLS and open and trade / transfer into a HSBC GS ISA in the same financial year.

Also am I right in thinking that if I use the full 2018/19 S&S ISA allowance in VLS60, I therefore cannot later in the year open a HSBC GS S&S ISA and transfer in from a cash ISA to trade as this would mean I've traded with the VLS ISA and investing the cash in HSBD is also trading?

So basically, if I want to open a HSBC GS S&S ISA, I'm going to have to wait until August, open it and invest the 2018/19 year's ISA allowance and at the same time transfer in the cash ISA and investing that amount too in the HSBC fund?

Does that count as one investment or is it two?

badger09 · 7 February 2018 at 5:05PM

scoot65

Rather than hijack someone else's thread, can you please add this to yours - or start a new one if necessary.

For clarification& to save me reading through your threads before I answer, is your new S&S ISA on the Vanguard platform or held elsewhere?

scoot65 · 7 February 2018 at 6:53PM

badger09 wrote: »

scoot65

Rather than hijack someone else's thread, can you please add this to yours - or start a new one if necessary.

For clarification& to save me reading through your threads before I answer, is your new S&S ISA on the Vanguard platform or held elsewhere?

OK, sorry.
I didn't think my post would be classed as a hijack as it was in the same vein as the OP's question.

To answer your question, I used iWeb to open the Vanguard fund.

(BTW I've added this to my own S&S ISA thread)

Thanks for your help, it's appreciated.

S&S ISA/MoneyBox

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