Royal London

masonic

CY24 said:

masonic 

The question is, can you sell up without incurring a capital gain above the annual allowance? If so, then you can avoid having to do the accurate sums and reporting to HMRC. The allowance has halved from the 2022/23 tax year and will halve again in the 2024/25 tax year.

The income with growth fund has a unit price of a little under £2, so your holding would be worth about £2,000, while the bond fund is 73p/unit, so worth about £3,000. So I don't think capital gains will be a concern.

Sorry, I’m still very much learning here, by selling up do you mean getting the funds out and closing the accounts? 

With regards to the risk, I do plan to leave for the longer term. I’d really need to get advice should the time come, but from the little I do know,  I feel a mix with global funds would better than purely those in the UK . 

Due to the allowance reducing over the coming years it would seem then if I was going to take the finds to do it sooner rather than later?

Yes, I mean selling the funds, closing the accounts and moving elsewhere with new funds (preferably in a S&S ISA to avoid any future tax headaches).

Next year's limit of £3,000 should still be ok for you, but the future is uncertain and I'd be inclined to take action before the end of this tax year personally (that still gives you 5 months). Parking in a cash ISA temporarily with a view to transferring to a S&S ISA would be an option if you want to get advice, but as the sum is small individual advice may not be cost effective, which is where robo and other solutions come into play.

CC21x

Ideally, if I find and open a suitable s&s isa first, it would then just be a matter of transferring the funds into the isa from here and then choosing the risk/funds to invest in? 

I had previously been asking in another thread about Lisa’s for retirement. Could this be opened in the same tax year as a s&s isa? 

I’ll check the main MSE page for the current best available s&s Isa’s around. 

CC21x

So I can confirm that they currently are in a s&s isa.  From what I can understand from Oct 22-April 23, the total has increased by around £1000 roughly.  This was more than I would have thought, although I know it can fall as well as rise.   I have seen the likes of Santander etc offering incentives for transferring Isa’s to them.  Although don’t know if the  likes of Santander/another bank would be better than say AJ Bell/HL?

There is also a Unit Trust with RL so will also need to figure out that.  

masonic

Bank-provided S&S ISAs can have relatively high fees, so you should definitely look before you leap. HL or AJ Bell (or Dodl) are going to be low cost for the amount you have, Vanguard Investor is cheaper if you can opt for Vanguard's own funds.

Both RL funds are Unit Trusts, this is just a type of fund.

In answer to your earlier questions, you can open and fund a LISA alongside a S&S ISA up to the annual £20k allow, but as you've confirmed your account is already a S&S ISA, it can be transferred, preserving the ISA status and not counting towards this year's allowance. This would simply involve filling out a transfer form at your new provider and asking them to transfer in the account as cash.

See https://monevator.com/cheapest-stocks-and-shares-isa-hack/ for some discussion on the best S&S ISA providers.

Albermarle

Plus if you read through this forum there are lots of threads about transferring ISA's including S&S ones.

Johnjdc

CY24 said:

So I can confirm that they currently are in a s&s isa.  From what I can understand from Oct 22-April 23, the total has increased by around £1000 roughly.  This was more than I would have thought, although I know it can fall as well as rise.   I have seen the likes of Santander etc offering incentives for transferring Isa’s to them.  Although don’t know if the  likes of Santander/another bank would be better than say AJ Bell/HL?

There is also a Unit Trust with RL so will also need to figure out that.  

Given that they're in an ISA, I'm assuming either you (or your late spouse would be the only other legal mechanism) set this up. Out of interest, what originally caused you to buy a product you don't understand, with a provider you know nothing about?

Good luck disentangling it all

dunstonh

Strange that they are in an ISA and the provider has issued a tax voucher.   That doesn't make any sense.  I

Given that they're in an ISA, I'm assuming either you (or your late spouse would be the only other legal mechanism) set this up. Out of interest, what originally caused you to buy a product you don't understand, with a provider you know nothing about?

They are ex CIS  (co-op).     CIS was a home service company for generations but failed and closed down and then sold the legacy book (just like many other home service companies like Pearl, Refuge, United Friendly, London Life and many more).

Most of the home service companies closed their salesforces 20 years ago.    CIS struggled on until around 2011 but it had already declined significantly by then (they had around 2100 agents in the early 2000s but just 750 at closure).  Indeed, it could be argued that the fact they struggled on with a dead business model was one of the reasons they ended up closing down.    However, unlike the other home service companies, the unions were very prominent with CIS, and they prevented the modernisation that CIS needed, which ultimately sealed its fate.

Most people who bought from the CIS or the other home service companies did so as that was the way things were done in that era.

CC21x

Johnjdc said

Given that they're in an ISA, I'm assuming either you (or your late spouse would be the only other legal mechanism) set this up. Out of interest, what originally caused you to buy a product you don't understand, with a provider you know nothing about?

Good luck disentangling it all

I didn’t actually buy the product at the time, it was the passing of a very close family friend when I was younger and the funds were held with CIS, from what I’m aware,it was some time ago.  Being younger at the time and unable to access the funds until a certain age they were transferred to RL when CIS ceased operation.  I think possibly once they were transferred to RL another family member set them up in this way, in all honestly I’m not very sure!  Not having any knowledge about this at all, went with it as the best option at the time.   

As I mentioned and am ashamed to say they have remained there for 15+ years, and it’s only now I’m trying to better my own knowledge and organise things better to make sure I will get the most out of it, hence the question of what and where.