Transferring Part ISA from HL to Vanguard

Rheumatoid

I have an ISA with HL that I have contributed to over a few years and bought Vanguard and other funds to hold in it. I now also have a Vanguard ISA and am thinking about moving the Vanguard funds to Vanguard to reduce charges. Is it possible to move the funds to Vanguard or will I need to sell and transfer cash. Indeed, is it even possible to move part ISA? I have contributed and bought Vanguard funds this year and I think this may complicate things so will move after the end of this tax year if it is possible.

The other question is, that if it is possible is it more cost effective in terms of HL charges to move the funds (two Vanguard funds) or sell and transfer the cash?

Thanks
R.

cattie

I can answer this as I had a similar query some weeks ago & I phoned Vanguard regarding moving my ISA, which contains other funds along with from 2 Vanguard. Because of the non Vanguard funds in the ISA, a direct transfer isn't possible & all funds would need to be sold beforehand.

To keep the ISA tax free status, you don't arrange the sale of funds yourself but apply directly to the new platform you want to move to for the transfer documents & once the funds are sold on your behalf, the money will sit in your account until you decide what Vanguard funds you want to invest in.

Vortigern

Does HL allow partial transfers out?

Rheumatoid

cattie wrote: »

I can answer this as I had a similar query some weeks ago & I phoned Vanguard regarding moving my ISA, which contains other funds along with from 2 Vanguard. Because of the non Vanguard funds in the ISA, a direct transfer isn't possible & all funds would need to be sold beforehand.

To keep the ISA tax free status, you don't arrange the sale of funds yourself but apply directly to the new platform you want to move to for the transfer documents & once the funds are sold on your behalf, the money will sit in your account until you decide what Vanguard funds you want to invest in.

Thanks for that but I don't want to move the whole ISA that is with HL because I want to keep some of the funds that are not available with Vanguard.

Rheumatoid

Vortigern wrote: »

Does HL allow partial transfers out?

I can't seem to work this out. Is it likely to be allowable by HMRC and just HL that might not allow it?

masonic

Rheumatoid wrote: »

I can't seem to work this out. Is it likely to be allowable by HMRC and just HL that might not allow it?

It is up to providers as to whether they allow partial transfers. Historically HL have not, but might have changed their position.

londoninvestor

masonic wrote: »

It is up to providers as to whether they allow partial transfers. Historically HL have not, but might have changed their position.

They certainly let me do a partial transfer of an unwrapped account, but not sure if they allow it for ISAs - where there is probably a bit more admin involved.

Rheumatoid

masonic wrote: »

It is up to providers as to whether they allow partial transfers. Historically HL have not, but might have changed their position.

Thanks, will ask them

cattie

Rheumatoid wrote: »

Thanks for that but I don't want to move the whole ISA that is with HL because I want to keep some of the funds that are not available with Vanguard.[/

That's exactly what I tried to explain in my post & probably didn't do it very well. Vanguard told me I couldn't transfer just my Vanguard funds to them, partial transfers were not an option & I'd have to apply to have the whole of the ISA holdings transferred which would result in the non Vanguard funds needing to be converted into cash & then reinvested into funds they hold on their platform.

[Deleted User]

I also wanted to do a partial ISA transfer to Vanguard - except my iSA was a cash ISA. I phoned Vanguard as the online form does not support a partial transfer. They explained that their platform does not currently support partial ISA transfers. I have to do a full transfer. I'm still wondering what can be so difficult about making partial transfers!!!

The only way to do a 'partial' transfer to Vanguard, is to transfer the VNG funds to another ISA or sell the funds. This could be with HL (if they allow you to have a second ISA)or sell the funds and transfer the cash to VNG. Then as far as VNG are concerned, you'll be making a total ISA transfer leaving you with the non VNG funds with HL

poppy10_2

Rheumatoid wrote: »

I have an ISA with HL that I have contributed to over a few years and bought Vanguard and other funds to hold in it. I now also have a Vanguard ISA and am thinking about moving the Vanguard funds to Vanguard to reduce charges. Is it possible to move the funds to Vanguard or will I need to sell and transfer cash..

Yes, this is possible, I did the same thing except with Charles Stanley Direct. Had an ISA with CSD with various funds including a Vanguard Lifestrategy and non Vanguard funds in it. It's easy to transfer using the Vanguard website - they organise it and the vanguard fund gets transferred over to them (without having to sell and go to cash) while the other funds of course remain at CSD.

As to whether it is cost effective it depends on the amounts and the time you are likely to stay invested. Vanguard's platform fee of 0.15% is considerably less than CSD which is 0.35%. But CSD charge £10 per fund for transfers out, so you have to take that into account.