Transfer Unit Trusts to an ISA

millerfamily5

Hi Folks

I have nearly £7000 in Jupiter unit trusts split almost 3 ways between Jupiter European Fund (good), Income Fund (middling) and Financial Opportunities Fund (poor) which I bought some years ago in a year when I had used my ISA allowance. I am thinking of cashing them in (or transferring them) to open an ISA account (non Cash), partly to take advantage of the tax free nature of the ISAs and partly because the Finacial Opps fund and the Income fund aren't doing well.

In the 2011/2012 Finacial year I put £4000 into a Northern Rock Online Cash Isa and withdrew £1000 later in the year leaving a balance of £3000.

I am unsure of how much more I could save in a Stocks and Shares or Unit Trust ISA within the 2011/12 financial year or whether I should wait until the next fiancial year before opening a new ISA of this type.

I am looking at retaining this saving for at least 5 years.

Any advice would be appreicated.

Many thanks

Richard

Vortigern

millerfamily5 wrote: »

Hi Folks

I have nearly £7000 in Jupiter unit trusts...

In the 2011/2012 Finacial year I put £4000 into a Northern Rock Online Cash Isa and withdrew £1000 later in the year...

I am unsure of how much more I could save in a Stocks and Shares or Unit Trust ISA within the 2011/12 financial year or whether I should wait until the next fiancial year before opening a new ISA of this type.

You've used £4000 of this year's ISA allowance of £10680 so you can contribute £6680 to a S&S ISA in the current tax year.

Are those Jupiter funds not in an ISA currently?

psychic_teabag

In addition, you could if you wish transfer the cash ISA into the S&S ISA.

You can't do a partial transfer of the current year's cash ISA, but you if you have an older cash ISA you could do a partial transfer from that to the S&S ISA.

Actually, I tbink you can achieve the same net effect of a partial transfer from the current year's cash ISA : if you transfer the whole of the cash ISA, that resets your cash ISA allowance back to 0. So you can then choose whether you put some of the remaining £6640 allowance into a new cash ISA. So the net effect is that you can end up with any amount from 0 to £5340 in cash ISA with remainder (plus the original £3000) in S&S ISA.

[I think that's right ...]

jimjames

You may be able to get the funds moved inside an ISA wrapper with a fund supermarket such as Hargreaves Lansdown.

Personally I would suggest that it is worth doing asap to use this years allowance as that allowance is lost after April, I guess it depends how close your "nearly £7000" is to the remaining allowance whether you can move it all this year.

Also remember that just because a fund isn't doing well at the moment it might not be a good time to sell unless you think there is a better investment for your money.

gadgetmind

1) What platform are you holding these funds on? Some do a low cost "Bed and ISA". This involved selling the funds and transferring as cash, but there is NO other way to do it. (Yes, you can do transfers, but only ISA to ISA)
2) Are these accumulation funds? These are interesting to hold unwrapped and the gain within them is both income, dividends, and capital gains. You need to monitor and declare the first two year-by-year and the latter on disposal. Annual statements are your friend.
3) As others have said, you do have S&S ISA allowance for this year, and it's worth using it rather than losing it, but it depends on whether you have unused capital gains allowance this year or need to wait until next year.

millerfamily5

Hi

Thanks for all your replies. I have now discovered that the the Unit Trusts are in an ISA wrapper after all. I still think that two of the funds aren't doing well and checking the view of others such as Hargreaves Lansdown they appear to agree, hence my wish to review my investment.

Thanks adgain for your advice.

Best wishes

Richard