Can you sell fund in one S&S ISA and buy it on same day in other S&S ISA?

Audaxer

Is there any law against me selling a multi asset fund that I have in an S&S ISA on a percentage charging platform, and buying the same fund on the same day at the same price in my S&S ISA on a different platform that charges a flat fee?

If I put the orders through at the same time I think I should be able to buy and sell the fund at the same price, so won't be out of the market.

I'm fairly sure it is okay to do that with a fund, but just wanted to check.

masonic

Yes, it would be fine to do that.

Tom99

Yes providing you have the ISA 'headroom' already in the account you are buying with, ie some or all of this years £20,000 not yet invested.
Also that the account you are using to buy is the only one in which you have already invested any 2018/19 new money.

p00hsticks

Tom99 wrote: »

Yes providing you have the ISA 'headroom' already in the account you are buying with, ie some or all of this years £20,000 not yet invested.
Also that the account you are using to buy is the only one in which you have already invested any 2018/19 new money.

THe OP could also be using cash already in the ISA to purchase (either already deposited in this or previous years or raised from selling other shares already in the ISA)

danm

I think, but not certain - that if you are concerned about using the current years ISA allowance (or have already used it) you should be looking to do this as a transfer rather than buying and selling.


I found this on one providers website


Can I still transfer my existing Stocks and Shares ISA to another Stocks and Shares ISA provider?
Yes. The rules on transferring like-for-like ISAs between providers are not changing.

• For example, you can still transfer your Stocks and Shares ISA held with one provider to first direct Stocks and Shares ISA, without affecting your annual ISA investment allowance.

• You must not withdraw your investments from a Stocks and Shares ISA and re-invest them in another Stocks and Shares ISA yourself, as it will count against you annual ISA investment allowance.

AnotherJoe

What's behind your question about there potentially being a law against it? (Which there isn't in any sense at all * though there may be tax consequence so in some respects but not in the context you've stated, but maybe there are some assumptions you've made about transfer of money perhaps?)
What issue are you trying to avoid?

* you could buy and sell the same fund a hundred times ina day if you wanted.

Aretnap

If you're thinking about Bed and Breakfasting rules, even outside an ISA there is no law against selling a fund (or share) and then buying it back immediately. It's just that if you buy it back within 30 days the original sale will not count as a disposal for the purposes of Capital Gains Tax, so you can't use it as a way of "banking" a gain and applying this year's CGT allowance to an investment you intend to hold for many years.


Inside an ISA (or a pair of ISAs) Capital Gains Tax does not apply - so the question of Bed and Breakfasting does not arise at all.

george4064

As others have said, as long as you have enough cash in your 'destination' ISA you should be able to trade on the same day and sell/buy the units at the same price.


One thing to check, is to make sure that you are buying/selling the same share class of the fund because many funds have different share classes available for different platforms. These might vary in the fee charged on the fund, valuation point, dealing cycle and also a different fund price.

masonic

AnotherJoe wrote: »

What issue are you trying to avoid?

The issue is mentioned in the OP: moving the holding from a percentage fee platform to a flat fee platform, presumably to reduce platform charges.

AnotherJoe

masonic wrote: »

The issue is mentioned in the OP: moving the holding from a percentage fee platform to a flat fee platform, presumably to reduce platform charges.

That's not an issue that's a reason for the move.it doesn't explain why the OP thinks there might be a law against it and if the OP intends to do something like use the funds from the sale to support the purchase or something similar.

danm

By law, I think the OP is referring to the current tax regulation around ISAs.


My understanding is if the ISA being sold from was opened in this tax year, then they would not be able to do this as they would be funding another ISA. (similarly if they have used this years allowance elsewhere)


if from a prior tax year, then possible but unless they plan to reinvest the proceeds from the sale into other investment on the same platform (I am assuming not as they are moving to avoid charges) - then at withdrawal they will lose the tax wrapper.


Per my post above, the OP should consider whether they should Buy/Sell or instigate a transfer.