Transferring previous year’s ISA

pinkllama

Hi all

If I’ve invested in a S&S ISA for multiple years and changed the funds in it over time, when transferring only previous years contributions to a new ISA provider how will the ISA decide which funds to transfer over?

I ask this as I have a plan to start investing monthly into a Vanguard S&S ISA, then every couple of years transfer the previous years contributions over to my iweb ISA that doesn’t have a platform fee.

Thanks

eskbanker

pinkllama wrote: »

If I’ve invested in a S&S ISA for multiple years and changed the funds in it over time, when transferring only previous years contributions to a new ISA provider how will the ISA decide which funds to transfer over?

'The ISA' doesn't decide, you have to! At the time of transferring, you need to nominate exactly what you wish to transfer, i.e. how many units of which fund(s) to transfer or sell. From HMRC's perspective the key thing is that you can't split up current year subscriptions but individual ISA providers may overlay their own policies, e.g. only allowing transfers of entire prior years' contributions rather than more granular units - from memory this is how IWeb handles transfers.

pinkllama

Thanks for that.
So if in previous years I’ve bought £20k of funds A&B, then in the current year transferred £10k of the 2 funds to another fund/s that I’ve paid into in the current year, what will be transferred over?

eskbanker

pinkllama wrote: »

Thanks for that.
So if in previous years I’ve bought £20k of funds A&B, then in the current year transferred £10k of the 2 funds to another fund/s that I’ve paid into in the current year, what will be transferred over?

It depends what you want to transfer over and the policies of the providers concerned! In other words, you can either decide what you want to transfer and pick a provider who can accommodate your wishes or pick a provider and base the transfer on whatever permutations they allow. But if your holding of fund C includes units bought from previous years' money and the current one then you need to be able to differentiate between those from your records if you're not planning to move everything....

jimjames

pinkllama wrote: »

Thanks for that.
So if in previous years I’ve bought £20k of funds A&B, then in the current year transferred £10k of the 2 funds to another fund/s that I’ve paid into in the current year, what will be transferred over?

With Fidelity, all funds will be transferred over. Your provider may be different.

Who are you with and moving to?

pinkllama

I’ll be transferring from Vanguard to iWeb and continuing to pay into Vanguard. I’ll hope to start doing this after a couple of years of monthly payments to Vanguard. I bacically want the zero platform charges of iweb for my accumulated balance and the zero trading costs of Vanguard for new monthly contributions of various funds.

Eco_Miser

I suggest that you do the transfer after 6th April and before you add any new subscriptions. That way there can be no doubt that only previous year's subscriptions have been transferred.