Transfer funds into ISA on HL

flopsy1973

I have fund account with HL and wish to transfer the funds from that into my ISA using this year's allowance. What is the process on HL do I have to sell and buy back in the same transaction. ?  CGT should not be issue as they have not increased that much since cost price and have only the full ISA allowance to use ? 

eskbanker

The process is typically referred to as Bed & ISA, which effectively combines the three transactions (sell, move cash into ISA, rebuy) into one, and I understand from another recent thread that HL set this up in a reasonably efficient way to minimise delay and cost.

[Deleted User]

Hi,

from HL faqs,

This service is only available for shares and other investments, like ETFs and investment trusts, which are traded on a stock exchange. It is only possible to repurchase the same shares as those you’re selling using the share exchange service.

If you’re looking to sell funds and buy them back in a Stocks and Shares ISA or SIPP, you can do this online. There are three steps to this process.

Step 1 - Log in and sell the funds in your Fund and Share Account.
There are no dealing charges for selling funds. Fund trades typically take four working days to settle and you can find the settlement date on your contract note.

Step 2 - Move the money to your ISA or SIPP.
Once the cash has settled you can move it to your ISA or SIPP. On our website select the Fund and Share Account then the ‘Cash’ tab. From here choose ‘Transfer money’. You can then choose where to move the cash.

Step 3 - Buy back the same fund or a different investment within the ISA or SIPP.
Place an instruction using the cash in your ISA or SIPP. Standard dealing charges will apply, there are no dealing charges for buying funds.

Edit: HL Source

eastmidsaver

as pointed out above from another poster,  this is called "bed and isa".
i have contacted HL about a similar query in the past  (but for bed and SIPP).
in a nutshell,  your stocks will be sold.   and then rebought when the cash fund has moved over to the ISA (assuming you want the same investments).

flopsy1973

Hi
The above funds i want to transfer into my ISA were my late mums, but when i look at the cost price on HL and transfer values when they were given to me they are different why is this?
Do I use the cost price at transfer to me to keep my CGT under the limit ? when deciding what to sell and do I instruct HL to sell 20K exactly to transfer over as there are number of funds some small amounts very messy what is best way to do it ?

Linton

flopsy1973 said:

Hi
The above funds i want to transfer into my ISA were my late mums, but when i look at the cost price on HL and transfer values when they were given to me they are different why is this?
Do I use the cost price at transfer to me to keep my CGT under the limit ? when deciding what to sell and do I instruct HL to sell 20K exactly to transfer over as there are number of funds some small amounts very messy what is best way to do it ?

Can you give a couple of examples of where fund value differs significantly - fund name, transfer value when you acquired the fund, date of transfer, HL current value.

it is possible that they are not exactly the same fund as HL have access to versions of funds that incur lower charges than the equivalent funds available elsewhere. If that is the case here, after the bed & ISA you will have the same values but different numbers of units.

When calculating CGT for inherited investments you should use the probate value, ie the value at death, as the purchase value.

flopsy1973

Please see below
LF odey opus I class cost price today 2975 
Cost price when transferred to me Nov 17 1937

Morgan Stanley sterling corporate bond cost price today 9463
Cost price at transfer Nov 17 6164
 So which price do I Base my assumptions on ? 

Linton

flopsy1973 said:

Please see below
LF odey opus I class cost price today 2975 
Cost price when transferred to me Nov 17 1937

Morgan Stanley sterling corporate bond cost price today 9463
Cost price at transfer Nov 17 6164
 So which price do I Base my assumptions on ? 

When you say Nov 17, do you mean November 2017 or 17th Nov 2022?

I am having difficulty matching todays prices for LF Odey Opus Class I.  The FT website gives the Acc fund as £28.224. and the Inc fund as £22.82.  There is no other class which matches your 2975.


Morgan Stanley Sterling Corporate Bond F Inc is given on HL as 94p which could match your 9463 but its price on Novemer 17th was much the same as now.


Are the prices in both cases the cost price per unit? Are they correct?
.

flopsy1973

Sorry November 2017. 
I will check unit prices and post 

flopsy1973

Hi
The second photo is todays value from HL
And first pic is the historic one from Nov 17 at date of transfer to me