Confused about ISA rule

Alexland

If the old ISA is with Nutmeg there really is no reason to stay (unless you are in a signup bonus minimum term) when the Vanguard LifeStrategy funds offer a similar allocation at a lower total cost. I'd just do a whole ISA transfer.

missymouse

My instinct is to leave the investment to pick up. I believe it will in the long run.
so I can still invest this year using my old provider and I to another vanguard fund. Any recommendations?
otherwise I could open a cash ISA and transfer the cash to there
yes Vanguard seem a bit inflexible.
it certainly is a learning curve 😊

Alexland

If it's a similar asset allocation it would go up or down in a similar fashion whichever provider you are using however you would be uninvested during a transfer. Which Nutmeg portfolio are you in?

missymouse

Balanced 3. Couldn’t find a name.
56.01% - Developed Markets  Equities 23.34% - Developed Markets  Government Bonds13.36% - Corporate Bonds 3.55% - Emerging markets etc plus other stuff.
If I requested a Vanguard fund from Nutmeg would I have to transfer it straight out so as to not invest with 2 different platforms in same tax year?

masonic

Nutmeg doesn't offer Vanguard funds, it only offers Nutmeg funds. If they did offer a Vanguard fund then you wouldn't need to transfer out immediately (or at all). You can buy and sell investments in as many S&S ISAs as you like in the same tax year. Why don't you just invest the cash in the same fund as you already hold for now. You can think about transferring the whole lot across to Vanguard in your own time.

Alexland

Ok so that's a fixed allocation portfolio of ETFs with a UK bias. The nearest single fund solution on Vanguard would be VLS60. Although Nutmeg might use some Vanguard ETFs they wouldn't allow you to select your own investments to facilitate a transfer.

You are fine to invest your uninvested cash with Nutmeg provided it was contributed into the ISA wrapper last tax year.

missymouse

Thanks to both of you.
I thought you could only have one S&S ISA provider in a tax year hence the confusion.
yes, I will either open another pot with Nutmeg or slowly add the cash to my existing pot. Do you think the one I have sounds ok. Tbh it was muddling along until recently and has picked up again 

Alexland

You can operate multiple S&S ISA accounts in the same tax year (buy, sell, reinvest dividends, etc) however you can only contribute new money into one account.

P.s. Masonic the Nutmeg portfolios are made from normal ETFs so they don't have their own funds as such. When your ETFs move too far away from their target allocation they rebalance your account for you.

eskbanker

missymouse said:

I thought you could only have one S&S ISA provider in a tax year hence the confusion.

As I mentioned in a post to you a month ago further up this thread, "do bear in mind the overarching ISA rule that you can only pay new money into one ISA of each type in any given tax year" so you can pay 2020/21 S&S ISA money into either Nutmeg or Vanguard or A N Other, and money from prior years can be distributed wherever you like, subject to provider-specific conditions about partial transfers.

missymouse

Brilliant as that cash pot was invested last year (only just) so not new money

will it make any difference to the costs in Nutmeg if I have 2 pots at the same time?  I’m not even sure if there are any other alternative ones to try in their platform
my Vanguard fund is the lifetstrategy 60/40 one