Transfer Vanguard funds to a fixed fee platform

dllive

Ive just thought: I cant have 2 ISAs in the same tax year can I?

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

In April 2023 I can create an ISA with iWeb, transfer my previous year's Vanguard ISAs to iWeb.... BUT... I will then have to pay transaction fees for my 23/24 ISA with iWeb becuase I wont be able to have my 23/24 ISA with Vanguard! Am I right in this?

Albermarle

Ive just thought: I cant have 2 ISAs in the same tax year can I?

You can have and open as many ISA's as you like in a tax year.

The rule is that you can only contribute new money to one of each type of ISA, each tax year.

So you could contribute say £10K to a cash ISA and £10K to a S&S ISA, or £20K to one of them.

Otherwise you can open up additional  new ISA's for transferring into, as long as you only contribute new money to one.

If you are ever confused about ISA rules, there is a sub forum , where many similar questions are asked and answered regularly. ISAs & tax-free savings — MoneySavingExpert Forum

ColdIron

dllive said:

Am I right in this?

No

Ive just thought: I cant have 2 ISAs in the same tax year can I?

Yes you can, see Albermarle's post above

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

Yes you can but you can't subscribe (pay new money into) it. You can transfer into it

Just open a new IWeb ISA any time you like (e.g. now) and transfer your Vanguard ISA to it (making sure they don't close it). Do not pay any new money into the IWeb ISA. You can continue to subscribe to Vanguard but you may find you can't trade while the transfer takes place

masonic

dllive said:

Ive just thought: I cant have 2 ISAs in the same tax year can I?

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

In April 2023 I can create an ISA with iWeb, transfer my previous year's Vanguard ISAs to iWeb.... BUT... I will then have to pay transaction fees for my 23/24 ISA with iWeb becuase I wont be able to have my 23/24 ISA with Vanguard! Am I right in this?

As Albermarle points out, there is no limit to the number of ISAs you can open, but you can only pay new money into one of each type per tax year.

The best way forward for you would probably be to open an iWeb S&S ISA now and transfer in only your previous year (2020/21 and prior) investments, leaving your current year account with Vanguard. If that's too messy, then you could transfer the whole ISA after using what you wish of your current year allowance, but this would require that you carry out a full application for a new S&S ISA with Vanguard in the next tax year.

badger09

ColdIron said:

dllive said:

Am I right in this?

No

Ive just thought: I cant have 2 ISAs in the same tax year can I?

Yes you can, see Albermarle's post above

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

Yes you can but you can't subscribe (pay new money into) it. You can transfer into it

Just open a new IWeb ISA any time you like (e.g. now) and transfer your Vanguard ISA to it (making sure they don't close it). Do not pay any new money into the IWeb ISA. You can continue to subscribe to Vanguard but you may find you can't trade while the transfer takes place

Not quite

masonic said:

dllive said:

Ive just thought: I cant have 2 ISAs in the same tax year can I?

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

In April 2023 I can create an ISA with iWeb, transfer my previous year's Vanguard ISAs to iWeb.... BUT... I will then have to pay transaction fees for my 23/24 ISA with iWeb becuase I wont be able to have my 23/24 ISA with Vanguard! Am I right in this?

As Albermarle points out, there is no limit to the number of ISAs you can open, but you can only pay new money into one of each type per tax year.

The best way forward for you would probably be to open an iWeb S&S ISA now and transfer in only your previous year (2020/21 and prior) investments, leaving your current year account with Vanguard. If that's too messy, then you could transfer the whole ISA after using what you wish of your current year allowance, but this would require that you carry out a full application for a new S&S ISA with Vanguard in the next tax year.

Again not quite

If you do as @ColdIron suggests & transfer the whole of your ISA, then you should not continue to subscribe to your Vanguard ISA in the current tax year. 

All  current year’s subscriptions must be kept together. 

Better to do as @Masonic suggests, transfer all previous year’s ISA subscriptions, including  those made in 2021/22. 

After 6th April 2023, transfer what will then become previous year’s subscription. 

dllive

Great, thanks for clarifying that for me! 

ColdIron

badger09 said:

If you do as @ColdIron suggests & transfer the whole of your ISA, then you should not continue to subscribe to your Vanguard ISA in the current tax year. 

All  current year’s subscriptions must be kept together.

Yes good point. A partial transfer (or fully subscribing the current year without closing the ISA) is the right way to do it

masonic

badger09 said:

masonic said:

dllive said:

Ive just thought: I cant have 2 ISAs in the same tax year can I?

So I cant create an ISA account with iWeb until the new tax year because I already have my 22/23 ISA with Vanguard.

In April 2023 I can create an ISA with iWeb, transfer my previous year's Vanguard ISAs to iWeb.... BUT... I will then have to pay transaction fees for my 23/24 ISA with iWeb becuase I wont be able to have my 23/24 ISA with Vanguard! Am I right in this?

As Albermarle points out, there is no limit to the number of ISAs you can open, but you can only pay new money into one of each type per tax year.

The best way forward for you would probably be to open an iWeb S&S ISA now and transfer in only your previous year (2020/21 and prior) investments, leaving your current year account with Vanguard. If that's too messy, then you could transfer the whole ISA after using what you wish of your current year allowance, but this would require that you carry out a full application for a new S&S ISA with Vanguard in the next tax year.

Again not quite

If you do as @ColdIron suggests & transfer the whole of your ISA, then you should not continue to subscribe to your Vanguard ISA in the current tax year. 

All  current year’s subscriptions must be kept together.

Yes, if the whole S&S ISA was transferred, there would be no current year account at Vanguard, as it would have moved to iWeb. Therefore, it would be necessary to open a completely new S&S ISA with Vanguard, which would be a second S&S ISA for the current year. However, you could continue to subscribe to the ISA now at iWeb (this would, however, be undesirable for the OP as further subscriptions would have to be invested net of some trading fees). The underlying principle is that HMRC consider a transferred ISA to be the same ISA; it is not different just because it is now managed by a different provider.

Edit: and I just realised your "not quite" refers to me living in the past - 2021/22 was the previous tax year, not 2020/21!

ColdIron

When I transferred from Charles Stanley Direct to IWeb I left cash in the account and kept the CSD account open. Not all platforms may allow this though

masonic

ColdIron said:

When I transferred from Charles Stanley Direct to IWeb I left cash in the account and kept the CSD account open. Not all platforms may allow this though

Out of interest, how did you achieve that? The current online transfer form doesn't appear to give such flexibility (just current year subscriptions in full, and/or all previous years subscriptions in full):