Drip feeding ISA allowance from Investment Account

point5clue

Mr and Mrs have a large sum of money (large meaning more than mr and mrs's ISA allowance for the year coming to them.

Step 1 - fill up £40,000 of ISA allowances - no brainer.
Step 2 - put the rest into mrs' trading account (she's a non tax payer, he's higher rate)

In ISA/non-ISA account it will all be invested in one mythical global unit trust we'll call ABCG (a topic for another thread to discuss the merits of this - they have lots of other investments that are quite diverse)

7th April Next year...

Can Mrs transfer £20,000 worth of ABCG units to her ISA, and the same to Mr's ISA, or does she have to sell £40,000 and transfer the cash ?

Plan is to end up with everything invested in ABCG in ISA accounts as fast as possible.

I've had a look at iWEB and it looks like you can only put cash into ISA, not transfer funds ?
Is it possible with any other platform ? Does it make much difference with iWeb's low charges ?

ColdIron

I've only ever seen cash transfers, some will give you a break on fees though. In specie transfers of stock units with a limit denominated in cash units could get messy. I hope you tucked away £30,480 before last Thursday

Keep_pedalling

You can't transfer them, they have to be sold then repurchased within the ISA.

Eco_Miser

Except for one special case (irrelevant here) only cash can be subscribed to an ISA.
Some platforms will do the sell and re-buy "bed and ISA" for a single fee instead of two. Iweb says to phone them if you want to do this.

george4064

Any new additions to an ISA must be as cash. Sounds like you'll be looking to 'Bed and ISA' your non-ISA in ABCG to your ISA.

Bed-and-ISA process is where your non-ISA holdings are sold, cash transferred to the ISA wrapper and the investments are re-bought within the ISA using the proceeds. Some platforms give special commission rates if you use their dedicated bed-and-ISA service, so check that out.