Cash ISA to S&S ISA

I would like to transfer 5k from last year‘s Cash ISA to my Vanguard S&S ISA. I don’t want to transfer the full ISA, just a portion of it. The cash ISA will remain my emergency fund and I won’t be paying anything into the cash ISA this tax year, but definitely want to keep it open.

I will pay only into my S&S ISA this Tax year  and even with the transfer from my cash Isa, won’t be getting to the annual maximum allowance this year.

I don’t think Vanguard allows a partial transfer,  so I’m wondering if I can transfer the money from my cash ISA to my current account and then move it into the S&S ISA? This will be around 5k and I won’t be paying in more than another 10k this Tax year. So at total of 15k. 

I think usually we have to transfer between ISA’s but as I’m staying under my annual allowance anyway this year and the cash transfer is from a previous ISA, I’m not sure if this would be different?

Many Thanks.



Comments

  • eskbanker
    eskbanker Posts: 29,765
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    If you're not planning on using more than £15K of your current year ISA allowance then yes, there's nothing stopping you from withdrawing £5K of prior year ISA money and paying it into a current year ISA to circumvent the Vanguard restriction on partial transfers.

    On the other hand, if you wanted to preserve your full £20K allowance then you could open a second cash ISA and use that as a staging post for the £5K by transferring into and then out of it, the latter being a full rather than partial transfer, thereby complying with Vanguard's requirements....
  • Many thanks Eskbanker, I hadn’t thought of opening a new cash ISA,  but that is a very good idea. 

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