Transfer stocks and shares fundingcircle isa to vanguard

chamelion

Hi folks,

So I've got a few years of isa that's in FC innovative funding isa account. I've admittedly lost faith in them and planning to withdraw the cash while maintaining isa wrapper and move to vanguard.

And here comes the challenge. FC will likely take months to sell my loan parts and get me the cash. The cash from sold parts will just sit there gathering dust.

Vanguard say they can only move a full isa, not a partial cash only transfer. Ideally I'd like the option to be able to take the available cash out in chunks and shift to the new supplier.

Is this route even possible? Or do I just have to wait months for everything to sell, lose interest on the sold parts, and transfer all at once?

Thanks!

eskbanker

No ISA provider is going to be able to break the rule that says that all current year contributions need to be kept together in one place so you're stuck with having to move all 2019/20 money at the same time.

However, prior year money can be moved as and when you wish - if Vanguard won't support partial transfers then simply go via an interim cash ISA that does, i.e. open a cash ISA, transfer in whatever part of the FC IFISA you wish to shift, and then transfer that in its entirety to Vanguard, then rinse and repeat as desired. It'll be a bit of hassle and will take longer than a single simple transfer but it should be doable....

soulsaver

Also consider as its an IF ISA you don't have to lose interest on the sold parts held as cash - you can withdraw the cash and put it in a non isa account while you wait for the liquidation of the rest and the optimum transfer window.

You can maintain the ISA wrapper providing you pay back in to the FC IF ISA account before the tax year end that you withdrew said funds.

https://www.fundingcircle.com/uk/innovative-finance-isa/

Towards the bottom of the page:

"The Funding Circle Innovative Finance ISA:
The Funding Circle IFISA is a flexi ISA. Under ISA rules you can take your money out of your ISA account and put it back later in the same tax year, without losing your tax-free entitlement."

chamelion

soulsaver wrote: »

Also consider as its an IF ISA you don't have to lose interest on the sold parts held as cash - you can withdraw the cash and put it in a non isa account while you wait for the liquidation of the rest and the optimum transfer window.

You can maintain the ISA wrapper providing you pay back in to the FC IF ISA account before the tax year end that you withdrew said funds.

https://www.fundingcircle.com/uk/innovative-finance-isa/

Towards the bottom of the page:

"The Funding Circle Innovative Finance ISA:
The Funding Circle IFISA is a flexi ISA. Under ISA rules you can take your money out of your ISA account and put it back later in the same tax year, without losing your tax-free entitlement."

Ah this is an awesome idea - thanks! So I could withdraw the holdings, pay tax on that temporarily but at least earn interest, then before end of tax year re deposit and transfer.

Could be a good option if I can't find a cash isa that would do a partial cash only transfer from my ifisa. Based on what I've been reading on p2pindependent it looks like someone had luck using the virgin isa transfer form despite them not explicitly saying they support the transfer.

Will see if I have luck that route...

soulsaver

chamelion wrote: »

Ah this is an awesome idea - thanks! So I could withdraw the holdings, pay tax on that temporarily but at least earn interest, then before end of tax year re deposit and transfer.

Could be a good option if I can't find a cash isa that would do a partial cash only transfer from my ifisa. Based on what I've been reading on p2pindependent it looks like someone had luck using the virgin isa transfer form despite them not explicitly saying they support the transfer.

Will see if I have luck that route...

FTAOD; you wouldn't be liable for any tax on the capital & interest at the time of w/d from the ISA.

Only the interest earned on the sum deposited in the non ISA cash account is taxable.

chamelion

soulsaver wrote: »

FTAOD; you wouldn't be liable for any tax on the capital & interest at the time of w/d from the ISA.

Only the interest earned on the sum deposited in the non ISA cash account is taxable.

Yep that makes sense. So if I withdraw £5k and earn 1% on that over a few months, I'm liable to pay taxes on the 1% interest earned for those few months.