changing mind after topping up S&S ISA

iwebdewi

Sorry if this has been asked before, but I couldn't find an answer anywhere. I've recently added my full 20k ISA allowance to my iWeb S&S ISA (which already contained more than 20k). I now wish I'd opened a new Trading212 ISA. (I know they've suspended new accounts for now, but presumably this will change.) Am I right that (once Trading212 allow new accounts again) I will be able to open a Trading212 ISA by transferring in whatever amount I want from iWeb, and not necessarily all this year's 20k? There's presumably no way of distinguishing this year's new money in my iWeb ISA from the previous years' money that was already in there. Thank you

dunstonh

m I right that (once Trading212 allow new accounts again) I will be able to open a Trading212 ISA by transferring in whatever amount I want from iWeb

Not quite.    You can certainly transfer the ISA but you can only transfer part or all of the value accured from previous years contributions or the value accrued from all of the current year (not part)/

There's presumably no way of distinguishing this year's new money in my iWeb ISA from the previous years' money that was already in there.

yes there is. 

iwebdewi

Thank you very much but I don't quite follow. 

you can only transfer part or all of the value accured from previous years contributions

As I said, my iWeb S&S ISA already contained more than 20k before I added this year's 20k. So if I now transfer say 10k from the iWeb ISA to open another S&S ISA somewhere, can't that 10k be taken to be part of the value accrued from previous years' contributions to the iWeb ISA?

eskbanker

iwebdewi said:

Thank you very much but I don't quite follow. 

you can only transfer part or all of the value accured from previous years contributions

As I said, my iWeb S&S ISA already contained more than 20k before I added this year's 20k. So if I now transfer say 10k from the iWeb ISA to open another S&S ISA somewhere, can't that 10k be taken to be part of the value accrued from previous years' contributions to the iWeb ISA?

Yes, the point being made is that current year money must be kept together, so if you move any current year money you must move it all, whereas prior year money can be moved in part or in full - the net effect is that if you have more than £20K of prior year money in an ISA then you can transfer as much or as little as you like.

Out of curiosity, what's the appeal of Trading212 to you over IWeb?

pbartlett

As an example, let's say you had 30k old contributions and added 20k and now want to transfer some.
Transfer 10k - no problem - it comes out of old contributions
Ditto 20k
Ditto 30k
40K - problem. Can't be 30k old  and 10k new - so must be 20k new and 20k old

etc

colsten

You can specify whether you want to transfer previous years or current year contributions. If any current year contributions, you MUST transfer all of the current year’s contribution.

So if you want to transfer less than £20k, you’d have to (instruct Trading212 to instruct iWeb) to sell existing investments to the appropriate value.

As already asked, what is the attraction of Trading212 over iWeb?

iwebdewi

Out of curiosity, what's the appeal of Trading212 to you over IWeb?

Most of my buy and hold assets are in my iWeb ISA and are staying there. Most of that is in a Vanguard LifeStrategy, also commodities, gold and property funds for diversification. After some research and thinking, I feel I'd like to buy some individual stocks, and these new platforms have free trading. If you or anyone else thinks this is a false economy, I'd be grateful to hear.  

eskbanker

iwebdewi said:

Out of curiosity, what's the appeal of Trading212 to you over IWeb?

Most of my buy and hold assets are in my iWeb ISA and are staying there. Most of that is in a Vanguard LifeStrategy, also commodities, gold and property funds for diversification. After some research and thinking, I feel I'd like to buy some individual stocks, and these new platforms have free trading. If you or anyone else thinks this is a false economy, I'd be grateful to hear.  

On the face of it, if Trading212 continue with that pricing model when (if?) they open their doors again, then it's clearly cheaper than most other competitors.  However, personally I'd rather put my money somewhere that looks safer, with a sustainable business model (it obviously costs money to manage ISAs and arrange trades), given the tales of woe when brokers collapse, but each to their own....

masonic

iwebdewi said:

Out of curiosity, what's the appeal of Trading212 to you over IWeb?

Most of my buy and hold assets are in my iWeb ISA and are staying there. Most of that is in a Vanguard LifeStrategy, also commodities, gold and property funds for diversification. After some research and thinking, I feel I'd like to buy some individual stocks, and these new platforms have free trading. If you or anyone else thinks this is a false economy, I'd be grateful to hear.  

The opportunity cost of waiting for T212 to reopen to new customers could exceed any savings on trading fees. Trading fees may not be significant if you are planning to hold for the long term. It might be worth the wait if you are thinking of investing small amounts in each share - but this may be a false economy due to the time cost of due diligence on each of your investments.