ISA allowance - transfer rules

LookingForTheSun

Hi,
Under the current ISA rules, I can only take out one stocks and shares ISA using a maximum investment of £20K, but ideally I'd like to split this across 2 investment ISAs.

Can I gift £10k to my mum, who's a lower rate tax payer and hasn't subscribed to an ISA this year, and then ask her to open an ISA? The idea being that she would simply transfer the money to me several years later.

dunstonh

but ideally I'd like to split this across 2 investment ISAs.

That would be extremely unusual with todays products available. Most platforms are whole of market, for example. So, no need to get multiple ISAs.

Can I gift £10k to my mum, who's a lower rate tax payer and hasn't subscribed to an ISA this year, and then ask her to open an ISA?

You can give £10,000 and she is free to spend it how she wishes.
If she is on means tested benefits, then she could lose those.

Why do you think you need two ISA managers?

LookingForTheSun

Hi,
Because I'd like to invest into 2 different products, e.g. a Vanguard passive tracker and an actively managed fund on a different platform - so far, I've only seen the option to use a single ISA. Presumably if I give my mum £10k, she then invests in an ISA and then pays me back in a couple of years, is the payment subject to capital gains tax?

Reed_Richards

It would be vastly simpler if you could find a platform that offers both the funds you want.

if you give money to your mum then it becomes her money. If she dies then it forms part of her estate. If she gives it back to you and dies within the next seven years then it may still form part of her estate. However if your complicated scheme worked as intended, there would be no CGT to pay.

Alexland

It's a terrible idea. I don't understand what is so unusual about your fund choices that you could not invest with a DIY platform which offers both funds? Or alternatively this tax year with one ISA manager and next tax year with the other?

Alex

dunstonh

Because I'd like to invest into 2 different products, e.g. a Vanguard passive tracker and an actively managed fund on a different platform - so far, I've only seen the option to use a single ISA.

Why would you want to use a different platform?

resumably if I give my mum £10k, she then invests in an ISA and then pays me back in a couple of years, is the payment subject to capital gains tax?

No. However, it is her money once you have gifted it. it is part of her estate.

LookingForTheSun

Alex,
Are you aware of any platforms that offer the ability to invest in a Vanguard ISA and an actively managed Lindsell train ISA at the same time? I haven't found anything.

Instead of calling it a gift, what if it's called a loan?

Vortigern

You can't get a Vanguard ISA from anybody except Vanguard. I don't think Lindsell Train offers an ISA.

What you can do is buy a Vanguard fund and an LT fund within just about any of the major platforms offering ISAs.

So HL, Fidelity, Cavendish, CSD, etc. can meet your needs.

Alexland

As above it will certainly be possible to invest in a choice of Vanguard and LT funds in a Hargreaves Lansdown ISA. For the other lower cost platforms check with the providers customer service before opening the accounts.

Alex

badger09

Vortigern wrote: »

You can't get a Vanguard ISA from anybody except Vanguard. I don't think Lindsell Train offers an ISA.

What you can do is buy a Vanguard fund and an LT fund within just about any of the major platforms offering ISAs.

So HL, Fidelity, Cavendish, CSD, etc. can meet your needs.

But not IWEB. Though you might not describe them as a major platform:cool:

dunstonh

Are you aware of any platforms that offer the ability to invest in a Vanguard ISA and an actively managed Lindsell train ISA at the same time? I haven't found anything.

All of them. That is the point of a whole of market platform.