HL to II transfer

arnhemrd

I'm currently in the process of transferring from HL to II. Full ISA allowance used for 13/14 ISA. I've also got £1500 in the fund and share account which was placed there tor transfer to the 14/15 allowance before HL hiked their fees and forced me to leave. My question is, can I use this £1500 to purchase funds in HL and then buy the remainder of my ISA allowance with II. Or will I have to wait until HL decides to transfer it over as cash before investing. I seem to remember something about not being allowed to invest into 2 ISAs in the same year. On HLs site it says that I can withdraw as cash to a designated bank account but that it will take 5 working days before I can access it.


Thanks, John.

joerugby

arnhemrd wrote: »

I'm currently in the process of transferring from HL to II. Full ISA allowance used for 13/14 ISA. I've also got £1500 in the fund and share account which was placed there tor transfer to the 14/15 allowance before HL hiked their fees and forced me to leave. My question is, can I use this £1500 to purchase funds in HL and then buy the remainder of my ISA allowance with II. Or will I have to wait until HL decides to transfer it over as cash before investing. I seem to remember something about not being allowed to invest into 2 ISAs in the same year. On HLs site it says that I can withdraw as cash to a designated bank account but that it will take 5 working days before I can access it.


Thanks, John.

Is five working days a big problem?

In my experience cash withdrawals from HL arrive more quickly than that anyway

[Deleted User]

Hi,

only 3 and a half hours to new tax year, so be quick.

badger09

arnhemrd wrote: »

I'm currently in the process of transferring from HL to II. Full ISA allowance used for 13/14 ISA. I've also got £1500 in the fund and share account which was placed there tor transfer to the 14/15 allowance before HL hiked their fees and forced me to leave. My question is, can I use this £1500 to purchase funds in HL and then buy the remainder of my ISA allowance with II. Or will I have to wait until HL decides to transfer it over as cash before investing. I seem to remember something about not being allowed to invest into 2 ISAs in the same year. On HLs site it says that I can withdraw as cash to a designated bank account but that it will take 5 working days before I can access it.


Thanks, John.

I would withdraw the cash from HL fund & share account NOW. It will reach your linked before the end of next week.

If you add it to your S&S ISA account with HL tomorrow, you would not be allowed to add to or deal through your II ISA account until the transfer from HL was completed.

If you don't add anything to your HL ISA account tomorrow, you can add up to £11880 to your II ISA tomorrow

masonic

As you mention you are in the process of transferring, you should avoid placing any trades on your S&S ISA, since this will likely delay your transfer and there is also the possibility that your 2014/15 contributions will not be moved under your existing transfer request.

Even moving it into your ISA and keeping in cash would be a bad idea, since you will not only have to wait for the cash to be transferred (by cheque) to III before you invest, but you will also have to wait for the cheque to clear!

badger09 wrote: »

If you add it to your S&S ISA account with HL tomorrow, you would not be allowed to add to or deal through your II ISA account until the transfer from HL was completed.

What has led you think that? I ask because the ISAs will be amalgamated during the tax year in which the contributions will have taken place, so the end result is that only III will report that it holds contributions from the OP made during the 2014/15 tax year during the annual returns to HMRC. Probably not one to chance, but it isn't necessarily going to cause an issue.

badger09

masonic wrote: »

What has led you think that? I ask because the ISAs will be amalgamated during the tax year in which the contributions will have taken place, so the end result is that only III will report that it holds contributions from the OP made during the 2014/15 tax year during the annual returns to HMRC. Probably not one to chance, but it isn't necessarily going to cause an issue.

Sorry - perhaps I should have said 'It is against HMRC rules' rather than 'you would not be allowed to'.

If OP transfers £1500 into his S&S ISA with HL tomorrow and then pays into his S&S ISA with II before the transfer from HL is complete, he will have broken the “one ISA of each type a tax year” rule. I did not say this would cause an issue - but it is against HMRC rules. OP has nothing to gain by doing it, so why do it?

masonic

badger09 wrote: »

If OP transfers £1500 into his S&S ISA with HL tomorrow and then pays into his S&S ISA with II before the transfer from HL is complete, he will have broken the “one ISA of each type a tax year” rule. I did not say this would cause an issue - but it is against HMRC rules. OP has nothing to gain by doing it, so why do it?

I'm not sure it is against HMRC rules. The OP has stated the transfer from HL to II is already in progress, so it is unclear whether this would violate the one ISA of each type per tax year rule, because it is not clear that they are different ISAs in the eyes of HMRC. This is analogous to the other 'exception' to the one ISA of each type per tax year rule, where an ISA manager is, at its discretion, allowed to let a customer split their contributions between more than one ISA of the same type held with the same ISA manager, providing they amalgamate the subscriptions in their annual return to HMRC - even though the customer actually has two different accounts, they are regarded as the same account by HMRC.

Coming back to the question of subscribing to two ISAs when one is in the process of being transferred into the other, take my own situation as an example:

Let's assume for the sake of argument that we haven't rolled over into a new tax year today and that I am partially subscribed for the current tax year. All of my holdings have been part-funded using current year ISA subscriptions. After 2 months, some of them have transferred to II, some of them are still at HL and some are showing on both platforms.

Which ISA manager has jurisdiction over my current year ISA subscriptions? My current year subscriptions are spead between both of them. Which ISA can I top up - HL, II, both, or neither? I don't think the answer to those questions is clear. Practically, whether or not I could add money at II would depend on II's interpretation of the situation.