Buying a fund for new S&S ISA charles stanley.

roxy28

I have just opened the above, waiting now for a activation code before i can use a debit card to put in money. I then want to add a VLS fund to the ISA , is this the right procedure to use the money , for example put in £2000 cash to then use all this cash to buy the fund?

If its wrong can you explain.

Ps not used any isas this tax year yet.

masonic

In a word, yes.

roxy28

masonic wrote: »

In a word, yes.

OK thanks for the reply.

I am unsure whether to add the fund first, then add the money from a debit card from my bank.

I was thinking if i already had money in the isa before adding the fund, that the £2000 in cash then to become £2000 in the VLS fund, would count as £4000 of my allowance of £15,250.
Hope that makes sense.

Vortigern

roxy28 wrote: »

I am unsure whether to add the fund first, then add the money from a debit card from my bank.

You can't do it that way round.

roxy28 wrote: »

I was thinking if i already had money in the isa before adding the fund, that the £2000 in cash then to become £2000 in the VLS fund, would count as £4000 of my allowance of £15,250.
Hope that makes sense.

Only the amount of money you pay in (£2000) counts towards your allowance. You could buy a fund, sell it and buy something different, trade again as many times as you want and you've still only used £2000 of your allowance.

Even if your £2000 fund doubles in value, it's only cost you £2000 and only used £2000 of your allowance.

colsten

roxy28 wrote: »

I am unsure whether to add the fund first, then add the money from a debit card from my bank.

You cannot 'add' a fund without buying it. Buying it means you must have money in the account as you cannot buy anything if you have no money in your account.

roxy28 wrote: »

I was thinking if i already had money in the isa before adding the fund, that the £2000 in cash then to become £2000 in the VLS fund, would count as £4000 of my allowance of £15,250.
Hope that makes sense.

Sorry, no, it doesn't make any sense.

Every pound you deposit into your ISA counts towards your ISA allowance. Once your money is in the ISA, you can do with it what you like. Buying a fund will not affect your annual allowance. Only new deposits into your account will count.
HTH.

roxy28

Thank you both for the reply.

Yes i see what you say it makes perfect sense, clear on that now thanks again.