how to spread across multiple IFISAs?

sultanoflondon

hi all,

I'm interested in building a UK SME debt portfolio at some point in the near future & as I understand, using an IFISA is the best way of doing it. I realise that it is important to diversify my investments across multiple lending platforms & borrowers, which is why I wish to open multiple IFISAs across multiple platforms.

From what I have read, I can contribute new money to one IFISA per year only. However, it is possible to transfer between IFISAs, so could I put all my money into one IFISA & then transfer it across many? Or is this not possible / does this incur large fees?

Thanks!

ColdIron

If you did this you would have paid new money into more than one IFISA in the tax year. HMRC would catch up with you when the ISA managers report it to them. You can transfer new money but you have to transfer all of it, not partial transfers. Good try but it won't work

Albermarle

You can transfer in 'old money' invested in ISA's in previous tax years . So for example you can open an IFISA in this tax year and add new money . Then open another IFISA but with no new money and transfer in money from an old ISA. The transfer can be from any type of ISA , not necessarily another IFISA.

short_butt_sweet

sultanoflondon wrote: »

I'm interested in building a UK SME debt portfolio at some point in the near future & as I understand, using an IFISA is the best way of doing it.

arguably, a better way is to buy a corporate bond fund. it's already well diversified, doesn't require you to learn to manage a debt portfolio (something you may or may not be good at), and can easily slot into a S&S ISA alongside other investments (no need for multiple ISAs).

(or, to be even more hands-off, if you hold a multi-asset fund inside a S&S ISA, that fund may well include a slice of corporate bonds.)