What happens is I sell a fund from my S&S ISA?

Robie

Simply,

I have some non-perfoming funds in my ISA (which I have held for while) that I need to get rid of.

Now, obviously I can sell of these inividual funds but what happens to the money. It seems that my ISA company (Jupiter) pays that directly into my bank account. The question is what happens to that money? Can I transfer it across to this year's ISA cash fund or even buy another fund?

Perhaps, this is stupid/obvious question but I wasn't sure what the tax situation would be. I sell of part my my old ISA and invest the returns into current year ISA. OR better still is there a better way to achieve the same without losing this years ISA allowance (although I don't have much money to put into ISA at the moment).

Thanks.

Robie

le_loup

No, you don't want to sell for cash, you want to do a switch. That is, put it into a different fund with Jupiter. That way you retain the ability to do a 2010/11 Isa should your circumstances change.

Robie

le_loup wrote: »

No, you don't want to sell for cash, you want to do a switch. That is, put it into a different fund with Jupiter. That way you retain the ability to do a 2010/11 Isa should your circumstances change.

Thanks (I think). The only problem is that I don't want to use Jupiter any more. Also, I may want part of fund sell as cash. I have started this years ISA (funds) with A&L and would like everything in one place (if that is wise).

datostar

You can normally switch funds within the existing ISA. This has no tax implications, doesn't affect current year ISA subscriptions and the fund manager normally makes no commission charge on such transactions which makes it a very economical way of moving your investments into better performing funds.
Alternatively, you should be able to sell funds and retain the cash within the ISA until you decide what to do with it. This is allowable as long as you don't leave it there too long. Nowadays, you may not earn any interest on cash balances.
If you sell and take the proceeds out of the ISA you lose the tax benefits.
Another option would be to transfer the ISA to another provider. Again, if you haven't subscribed to it in the current tax year you won't affect your ability to subscribe to another one in this tax year. If you transferred it to a self-select S&S ISA you could buy and sell to your heart's content within the ISA.
I should speak to Jupiter and find out your options.

Rollinghome

Robie wrote: »

Can I transfer it across to this year's ISA cash fund or even buy another fund?

No, money can be transferred from a cash ISA to a S&S ISA but not the other way around. (Probably because whereas all taxpayers gain from the lack of tax on a cash ISA that's not the case with an S&S ISA.)

The most flexible way might be to transfer your fund as it is to a discount broker like Hargreaves Lansdown and then you can move between the funds of different unit trust managers as often you want - all done on line. Just contact H-L and they'll send you the form and transfer the fund across for you.

xrjtg

Yes, you want to transfer to another provider. H-L is a sensible choice, although there are other fund supermarkets that offer ISA accounts. A discount broker such as H-L has the additional advantage of removing some of the initial and annual charges: as a rule you don't want to buy into funds direct from the manager.

Robie

Thanks for the input so far. It's easy when you know how :0).

I have started S&S ISA with A&L this year, paying a monthly £300 to buy into funds. So, I presume legally it is not a problem if I transfer from Jupiter to A&L and then sell of some of the funds (originally with Jupiter) to buy another set of funds using A&L?

datostar

Robie wrote: »

Thanks for the input so far. It's easy when you know how :0).

I have started S&S ISA with A&L this year, paying a monthly £300 to buy into funds. So, I presume legally it is not a problem if I transfer from Jupiter to A&L and then sell of some of the funds (originally with Jupiter) to buy another set of funds using A&L?

No problem at all. Good move to do that.

Rollinghome

Robie wrote: »

I have started S&S ISA with A&L this year, paying a monthly £300 to buy into funds. So, I presume legally it is not a problem if I transfer from Jupiter to A&L and then sell of some of the funds (originally with Jupiter) to buy another set of funds using A&L?

Except that with A&L I assume you can only choose funds managed by Santander rather than pick the possibly better managed ones from the whole market. In most cases H-L would discount all of any front end charges plus a small part of the annual charges.

Robie

Rollinghome wrote: »

Except that with A&L I assume you can only choose funds managed by Santander rather than pick the possibly better managed ones from the whole market. In most cases H-L would discount all of any front end charges plus a small part of the annual charges.

My bad. I meant H-L not A&L :embarasse

I don't know where A&L came from.

Thanks. I will start the process of transferring my funds from Jupiter to H-L from tomorrow. Then sell of all the !!!! and hopefully buy better.

Robie

Robie wrote: »

My bad. I meant H-L not A&L :embarasse

I don't know where A&L came from.

Thank you all for response. I will start the process of transferring my funds from Jupiter to H-L from tomorrow. Then sell of all the rubbish and hopefully buy better.

My bad. I meant H-L not A&L :embarasse

I don't know where A&L came from.

Thank you all for response. I will start the process of transferring my funds from Jupiter to H-L from tomorrow. Then sell of all the rubbish and hopefully buy better.