Confused about ISA rule

eskbanker

missymouse said:

i feel like tipping the cash into my original investment. I don’t really want it to sit there doing nothing but we are now in a new tax  year and you can’t have 2 funds at the same time.

What do you mean by this?  I'm not aware of any S&S ISAs that prevent you from investing in multiple funds concurrently....

missymouse

I mean 2 different providers or platforms. 😊

My new fund is vanguard which I have been considering for ages but I didn’t realise the possibility of no partial transfer.

can I transfer the cash pot to a cash ISA instead?

eskbanker

missymouse said:

I mean 2 different providers or platforms. 😊

My new fund is vanguard which I have been considering for ages but I didn’t realise the possibility of no partial transfer.

can I transfer the cash pot to a cash ISA instead?

Which provider advised that you couldn't do a partial transfer of prior year money?  Nutmeg allow this and Vanguard certainly imply it ("An ISA opened during the current Year must be transferred in full") but if necessary you could open a cash ISA and transfer via that....

missymouse

Thanks 
vanguard are telling  me this but I may try to have a phone conversation with them. I don’t really understand why they cannot just accept the transfer of the cash across. It would be crazy to have to sell the investment as surely it would lose money being liquidated into cash then back into another fund.
i wonder if I could open a cash ISA and transfer the cash out. I feel frustrated as I may as well have left it in the building society 

Alexland

As I said a few posts earlier some providers as a matter of policy don't support partial transfers out even in a situation where it's allowed under the ISA guidelines. Either it's too much complexity to implement or they take the view that if you are slightly inclined to leave then get all your stuff out and be gone.

missymouse

I’ve already deposited money in the new S&S account 
So any ideas for the cash? Why wouldn’t they want my money to invest. Less hassle than an invested sum.
A theoretical question 
what would happen if I stuck it into the original s&s ISA from last year. How would anyone from the new company know. It’s highly unlikely I would invest the full 20k this year anyway 

masonic

missymouse said:

I’ve already deposited money in the new S&S account 
So any ideas for the cash? Why wouldn’t they want my money to invest. Less hassle than an invested sum.
A theoretical question 
what would happen if I stuck it into the original s&s ISA from last year. How would anyone from the new company know. It’s highly unlikely I would invest the full 20k this year anyway 

I'll preface this post with a disclaimer that having read back through your previous posts I'm totally confused about what you are trying to transfer, and which ISA(s) you have paid into in the current tax year, but this might be useful:

https://www.vanguardinvestor.co.uk/need-help/answer/is-the-vanguard-isa-a-flexible-isa

"Is the Vanguard ISA a flexible ISA? Yes, this means that you can take money out and then put it back in again later in the tax year without affecting your ISA allowance. All you need to do is make sure you stay within the annual ISA allowance."

If you have paid into the Vanguard S&S ISA this tax year and it is that money you wish to put into a cash ISA. then you can simply withdraw it and pay it into your cash ISA of choice (presuming you haven't paid into a cash ISA yet this tax year).

Alternatively, if you have money in your original S&S ISA from last year that you wanted to transfer to Vanguard, without transferring the whole ISA, then you are of course free to invest that money within the old S&S ISA without breaking any rules.

If however, you are trying to do something else, perhaps you could summarise exactly what that is in one post?

missymouse

I’m trying to part transfer money from another provider which is held within a S&S ISA as a cash sum & not invested. I want to leave the original investment in tact. All the money was placed there before April 6th 2020

i have now opened a new Vanguard account and wanted to bring the cash sum across to add to my new fund from my previous provider 

Alexland

Aah I see the problem from starting a dummy transfer on Vanguard's website - yes it looks like they will partially transfer Vanguard funds but not non-Vanguard funds or cash - how annoying and unusual. So it looks like, to get the money into Vanguard, you would need to invest the cash in a Vanguard fund (in the old S&S ISA if possible) to partially transfer or to transfer the whole ISA.

badger09

@missymouse

A month ago you started with, 'I already have a S&S isa that isn’t brilliant'. You've decided to invest in a S&S ISA with Vanguard this year. As you're not able to transfer just the uninvested cash you have with Nutmeg (the not brilliant ISA) why don't you simply convert your investment to cash, ask Vanguard to transfer the lot, and start with a clean sheet?