ISA transfer to Vanguard help

GeoffTF

Alexland said:

GeoffTF said:

The worst examples are transfers of S&S ISAs. There is a recent thread from this site:

https://forums.moneysavingexpert.com/discussion/6295036/transfer-to-iweb-8-months-and-counting

There do not appear to be any effective sanctions for failure to meet the deadline.

Maybe it's all my fault as the iWeb transfer backlog seems to have started shortly after the Alex Manoeuvre was published on Monevator.

https://monevator.com/cheapest-stocks-and-shares-isa-hack/

With regard to the Alex Manoeuvre, there is an even cheaper way for someone staring out with small sums. To start, use Vanguard ETFs in a Freetrade GIA. When the account becomes large enough (one or two ISA allowances), transfer to a Freetrade ISA (a pumping manoeuvre, with near simultaneous sells in the GIA and buys in the ISA). A Monevator article on that could ease the Vanguard to iWeb transfer load.

Alexland

GeoffTF said:

there is an even cheaper way for someone staring out with small sums. To start, use Vanguard ETFs in a Freetrade GIA. When the account becomes large enough (one or two ISA allowances), transfer to a Freetrade ISA (a pumping manoeuvre, with near simultaneous sells in the GIA and buys in the ISA). A Monevator article on that could ease the Vanguard to iWeb transfer load.

Wouldn't that require enough cashflow to cover both accounts simulaniously and incur £36 pa for the Freetrade ISA?

GeoffTF

Alexland said:

GeoffTF said:

there is an even cheaper way for someone staring out with small sums. To start, use Vanguard ETFs in a Freetrade GIA. When the account becomes large enough (one or two ISA allowances), transfer to a Freetrade ISA (a pumping manoeuvre, with near simultaneous sells in the GIA and buys in the ISA). A Monevator article on that could ease the Vanguard to iWeb transfer load.

Wouldn't that require enough cashflow to cover both accounts simulaniously and incur £36 pa for the Freetrade ISA?

No. Initially, you do not need the ISA, because your tax allowances will be sufficient for you to pay no tax. When you are getting near to paying tax, you open an ISA and pay in some cash in to prime the pump. You sell stock to that cash value in the GIA, and buy stock to the same cash value in the ISA. You then collect the proceeds of the sale in the GIA, and pay it into the ISA. You repeat that process as many times as you need to bed & ISA your ETF(s). Trades are free remember. You can start just before the end of the financial year to use two ISA allowances, if necessary.

Trading 212 offers free ISA, but is not accepting new clients. I also doubt whether their pricing is sustainable.

Albermarle

As you are transferring an existing ISA , then if it is delayed into the next tax year it does not matter.

eskbanker

hangryconsumer said:

Got an S&S ISA with high charges that needs tranferring to Vanguard. Reading the timescales on this thread, it seems this could take up to 30 days, i.e. past the new tax year. Would it therefore be better to wait until the new tax year to initiate the transfer or does it not matter? Not sure if there is anything to take into account.

The change of tax year has no significance for a transfer, unless you wanted to make a partial transfer of money paid in earlier this tax year.

Are you transferring in specie, i.e. do you only hold Vanguard funds that are available on the Vanguard Investor platform?  If not, then you'd need to sell whatever you do hold, transfer as cash and then buy Vanguard funds once the money has transferred.

And just to be sure, you need to initiate the transfer via Vanguard rather than your existing provider....

Albermarle

If you have not contributed to your existing S&S ISA this tax year , and you still have some of your overall ISA allowance (of £20K left,  then you could open a Vanguard S& S ISA today, and deposit some new funds and then initiate the transfer.

GeoffTF

hangryconsumer said:

Got an S&S ISA with high charges that needs tranferring to Vanguard. Reading the timescales on this thread, it seems this could take up to 30 days, i.e. past the new tax year.

30 days is what it is supposed to take. It can take much longer than that. There have been a few cases where transfers have taken more than a year.

Aceace

I have an ISA transfer going the other way, I.e. out of Vanguard. It's currently into its 5th month and still hasn't completed. Vanguard have been utterly inept, despite multiple requests from the receiving ISA manager and seperate official complaints from myself and the receiving ISA manager. The actual funds, which were held as cash since before the transfer was initiated, have finally been transferred but they can't be accessed on the receiving side as Vanguard haven't sent the required paperwork, despite being requested to do so 3 times over the past 3 weeks. 

hangryconsumer

eskbanker said:

The change of tax year has no significance for a transfer, unless you wanted to make a partial transfer of money paid in earlier this tax year.

Are you transferring in specie, i.e. do you only hold Vanguard funds that are available on the Vanguard Investor platform?  If not, then you'd need to sell whatever you do hold, transfer as cash and then buy Vanguard funds once the money has transferred.

And just to be sure, you need to initiate the transfer via Vanguard rather than your existing provider....

I don't have any account at all with Vanguard, so I would need to open an account and initate a transfer. All funds from the current tax year and I don't believe any of them are Vanguard funds. If you're sayin that I need to sell and transfer as cash then I might as well just withdraw from my current investment and re-invest in Vanguard funds? I thought that initiating the transfer with Vanguard would do this automatically.

eskbanker

hangryconsumer said:

eskbanker said:

The change of tax year has no significance for a transfer, unless you wanted to make a partial transfer of money paid in earlier this tax year.

Are you transferring in specie, i.e. do you only hold Vanguard funds that are available on the Vanguard Investor platform?  If not, then you'd need to sell whatever you do hold, transfer as cash and then buy Vanguard funds once the money has transferred.

And just to be sure, you need to initiate the transfer via Vanguard rather than your existing provider....

I don't have any account at all with Vanguard, so I would need to open an account and initate a transfer. All funds from the current tax year and I don't believe any of them are Vanguard funds. If you're sayin that I need to sell and transfer as cash then I might as well just withdraw from my current investment and re-invest in Vanguard funds? I thought that initiating the transfer with Vanguard would do this automatically.

Sorry, yes, if you initiate a transfer then your existing non-Vanguard investments would be sold as part of the process if you don't choose to do this yourself at a time and price that you're happy with.  Obviously if you're moving from non-Vanguard funds to Vanguard ones at some point then yes, making that switch via your existing provider prior to transferring in specie may make sense, but if it's an expensive platform it may not be cost-effective?