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S&S LifeStrategy Isa - Transfer Out Vanguard

Options
I am confused about the rules
I know to keep the tax-free status of an ISA it has to be transferred

I have quite a large sum of money in a Vanguard SS Isa, now that interest rates are rising, I'm getting twitchy so would like to transfer it out

Say I wanted to send the money to a Santander Cash ISA

If I sell the shares and have a cash holding in Vanguard is this money still part of the ISA wrapper (and then can be transferred to Santander)
OR
Does it have to be transferred as S&S to Santander, and Vanguard sell them when they get the instructions from Santander?

Thanks


Comments

  • eskbanker
    eskbanker Posts: 37,156 Forumite
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    S&S ISAs can be transferred to cash ISAs without losing the tax wrapper status - you can either choose to liquidate your holdings at a time of your choosing or it'll happen as part of the transfer.  As ever, initiate the transfer from the receiving provider.
  • That's what I thought,   so I could sell them tomorrow and then instruct Santander to transfer them in
  • eskbanker
    eskbanker Posts: 37,156 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yes, although it's not a good time to be liquidating investments, albeit potentially still worth doing if they no longer fulfil your requirements, to the extent that crystallising losses is the least worst option (or you could be up since buying?).  Switching to cash simply because of interest rate rises doesn't seem much of a rationale, but if it's money you're likely to need in the short to medium term then that would make more sense....
  • I’m in a vanguard SS ISA too. Also wanting to transfer over to a cash ISA. I may be wrong.  But my reading is that although Vanguard have a ‘general account’ this does not retain the ISA shield if you withdraw to it.  The only way I can see is to get another provider to perform the transfer in (and the inherent risk of the fund being sold on an uncertain date prior to transfer to the cash isa. ) 
  • MX5huggy
    MX5huggy Posts: 7,163 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Aldermast said:
    I’m in a vanguard SS ISA too. Also wanting to transfer over to a cash ISA. I may be wrong.  But my reading is that although Vanguard have a ‘general account’ this does not retain the ISA shield if you withdraw to it.  The only way I can see is to get another provider to perform the transfer in (and the inherent risk of the fund being sold on an uncertain date prior to transfer to the cash isa. ) 
    Just click sell on the investment you want to sell then you have 3 options

    transfer to external bank account 

    sell to cash to be held within the ISA 

    sell to buy a different investment within the ISA (vanguard call this a switch). 

    You want number 2. 
  • fantastic, thank you.
  • MX5huggy said:
    Aldermast said:
    I’m in a vanguard SS ISA too. Also wanting to transfer over to a cash ISA. I may be wrong.  But my reading is that although Vanguard have a ‘general account’ this does not retain the ISA shield if you withdraw to it.  The only way I can see is to get another provider to perform the transfer in (and the inherent risk of the fund being sold on an uncertain date prior to transfer to the cash isa. ) 
    Just click sell on the investment you want to sell then you have 3 options

    transfer to external bank account 

    sell to cash to be held within the ISA 

    sell to buy a different investment within the ISA (vanguard call this a switch). 

    You want number 2. 


    I have just cashed in my daughter's ISA  also with Vanguard and these options never appeared.
  • dunstonh
    dunstonh Posts: 119,680 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    MX5huggy said:
    Aldermast said:
    I’m in a vanguard SS ISA too. Also wanting to transfer over to a cash ISA. I may be wrong.  But my reading is that although Vanguard have a ‘general account’ this does not retain the ISA shield if you withdraw to it.  The only way I can see is to get another provider to perform the transfer in (and the inherent risk of the fund being sold on an uncertain date prior to transfer to the cash isa. ) 
    Just click sell on the investment you want to sell then you have 3 options

    transfer to external bank account 

    sell to cash to be held within the ISA 

    sell to buy a different investment within the ISA (vanguard call this a switch). 

    You want number 2. 


    I have just cashed in my daughter's ISA  also with Vanguard and these options never appeared.

    Did you go straight to withdrawal?  if so, you wouldn't see as many options (no need for switch for example or sell to cash within the ISA)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • MX5huggy
    MX5huggy Posts: 7,163 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Did you manage to sell? 
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