30 day rule Vanguard Lifestrategy

metrobus

If i want to bed & isa funds currently held in Vanguard lifestrategy 60 can I immmediately buy Vanguard lifestrategy 40 or 80,or must i wait 30 days and am i correct in thinking i need to wait 30 days before buyinng VLS60?

This will not be until the start of the next financial year,if possible would it be best to sell bbefore the tax year ends to take up cgt allowance and then obviously buy in the new tax year when the isa allowance becomes once again available?

Any thoughts would be appreciated.

Thank you.

kuratowski

With Bed & ISA you don't need to worry about the 30 day rule at all.  The repurchase inside the ISA is ignored for CGT purposes.  Everything that happens within an ISA (well, within the subscription limits) is treated as if it does not exist for tax purposes.

Adyinvestment

The 30 day rule does not apply to ISA's, so you could sell the same fund from a GIA and repurchase in an ISA the same day.

metrobus

So i can sell £20000 of VLS60 from my iweb share dealing account and once the funds become available transfer them to my stocks & shares isa acc and buy VLS60 again? shame we cant just transfer £20k worth of the fund from the SDA to the isa account.
I guess there would be a few days delay in the funds becoming available from the inital sale.
Thank you.

ColdIron

metrobus said:

This will not be until the start of the next financial year,if possible would it be best to sell bbefore the tax year ends to take up cgt allowance

If your sale of £20,000 does not realise a gain in excess of £12,300 if doesn't matter when you sell from a tax PoV. I would do it in the next financial year to minimise my time out of the market

If the sale would exceed the Annual Exempt Amount you would sell, say, £10,000 in this financial year and £10,000 in the next before moving it into an ISA. I.e use 2 years 'allowance'

eskbanker

ColdIron said:
If your sale of £20,000 does not realise a gain in excess of £12,300 if doesn't matter when you sell from a tax PoV.

Based on its performance since launch, I don't believe it's possible to realise a gain of £12,300 from a sale of £20K worth of VLS60, which would require growth of circa 260% 160%, although who knows what'll happen by the end of the tax year!

ColdIron

Growth of 160% surely, or 2.6 times

Albermarle

I guess there would be a few days delay in the funds becoming available from the inital sale.

Should not be a 'few days ' but will probably be three working days but it varies depending on the platform and the time of day you sell.

ColdIron

metrobus said:

I guess there would be a few days delay in the funds becoming available from the inital sale.

If you can afford it, what I do is fund the ISA first and once the cash is available put in the sell and buy instructions simultaneously. They should both be executed at the same valuation point so there is no delay as such. The sale proceeds can then replace the money used for the ISA. If you don't have the spare cash a few days won't make much difference and could even work in your favour

jimjames

ColdIron said:

metrobus said:

I guess there would be a few days delay in the funds becoming available from the inital sale.

If you can afford it, what I do is fund the ISA first and once the cash is available put in the sell and buy instructions simultaneously. They should both be executed at the same valuation point so there is no delay as such. The sale proceeds can then replace the money used for the ISA. If you don't have the spare cash a few days won't make much difference and could even work in your favour

I've done this in the past and is a good way to ensure you aren't out of the market for any significant time although you obviously still have the costs of buying & selling