S&S ISA allowance & H/Lansdown selling your funds/shares units

JustAnotherSaver

So you have a S&S ISA with Hargreaves Lansdown that holds 'old money'. 

You have either contributed to a S&S ISA elsewhere for this tax year or you want to leave your options open.

Hargreaves Lansdown message saying you need to add cash to cover fees else they'll sell off units to pay for the fees which you don't want.

Does adding cash to the account (but not investing in anything) mean that you can't then put money in to a S&S ISA elsewhere or would you still be ok to invest with another provider?

Albermarle

Personally I would assume that adding even a small amount of cash , would count as 'new money' so you would not be able to open another S&S ISA this tax year. 
Just let HL sell off a small amount of your holdings , it's no big deal and quite common.

cheerfulcat

You can pay the fees from your fund & share account.

george4064

Does adding cash to the account (but not investing in anything) mean that you can't then put money in to a S&S ISA elsewhere or would you still be ok to invest with another provider?

Yes, this will 100% count as an ISA contribution and hence will mean (according to the HMRC ISA rules) that you cannot subscribe new money to any other S&S ISA.

You would be better off to simply allow HL sell sufficient units to raise the required cash for fees, if there is a cost associated with that (HL selling units for you to cover fees) then raise the cash yourself by placing a small value sale to cover your fees.

JustAnotherSaver

cheerfulcat said:

You can pay the fees from your fund & share account.

Is that a workaround or would that also be considered 'new money'?

soulsaver

Faqs
What if I've reached the full ISA allowance and can’t top up?

If there’s not enough cash in your ISA to pay charges and you can’t top up, you can add money to an HL Fund and Share Account instead. We’ll take your charges there instead of selling your ISA investments.

ColdIron

Open a Fund & Share account and put money into that, perhaps with a Monthly Savings Plan if your fees are £25+. Then change your Fee Collection Options under Account Settings to 'Collect fees outside account where possible'. It's not a bad idea even if you don't have an ISA elsewhere as it maximises the value of your ISA. There used to be an account closure fee but they have removed that now