"Partial" transfer from S&S ISA to cash ISA

masstca

Hi, it might sound like a dull question but I am actually not finding a clear answer:
for the next financial year, I would like to open a new cash ISA and transfer into it only part of my current S&S ISA (Vanguard)... is this possible?

I know I could switch provider, i.e. close the Vanguard account and move all my funds, but I would like to keep the Vanguard account open and transfer only part of it (say, whatever is in cash and not really invested) to a safer destination (cash ISA), without this affecting my yearly allowance. Would there be a way to do it when opening my new cash isa? Thank you for your kind attention.
 

grumiofoundation

Not all providers have to allow partial transfers of previous years contributions (not sure if vanguard do -  if can’t find online maybe just drop them an email). 

Depending on the sums involved ISA transfer may not be necessary? 

Vanguard offers a flexible ISA, so any money you take out can be replaced in the same tax year without counting towards that years allowance. So if you aren’t going to be impacted by the 20k limit this might be a possibility.

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

e.g. Have 15k in VG.
- start of 21/22 tax year seek investments and withdraw 10k, leaving 5k invested. 
- Deposit the 10k in 21/22 cash ISA*
- Can then pay 10k back into VG without impacting 21/22 limits either if you decide to invest it again or can do near end of tax year and just hold in cash in VG account (will end up paying 0.15% in fees to do this but would only be for a couple of weeks max.) if want to preserve ISA status. 

*des this actually need to be an ISA? Could just put in best easy access account or premium bonds? 

Aceace

Yes, you can do a partial transfer from a Vanguard S&S ISA. You would need to fill out an ISA transfer form from the organisation that you wish to transfer to.
I did one in late 2020 to an IFISA (CrowdProperty). 

masstca

Thank you both!
So if I well understand, making a partial transfer from VG to a cash ISA, this would not affect my yearly allowance, right?
Assuming to transfer 10K from VG to Cash ISA, I would still be able to put 20k allowance for the year 21/22, for a total of 30k tax-free... if I got how it works!

masonic

masstca said:

Thank you both!
So if I well understand, making a partial transfer from VG to a cash ISA, this would not affect my yearly allowance, right?
Assuming to transfer 10K from VG to Cash ISA, I would still be able to put 20k allowance for the year 21/22, for a total of 30k tax-free... if I got how it works!

Yes, that is correct.