Moving ISA from Vanguard to a Building Society

I'm planning to transfer some money from a Vanguard Lifestrategy ISA to and ISA with a Building Society. 

My concern is that the value of the Vanguard funds might suddenly go down during the period when the transfer is about to take place so I'm wondering how best to address this concern?

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  • jimjames
    jimjames Posts: 17,493
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    Murmansk said:
    I'm planning to transfer some money from a Vanguard Lifestrategy ISA to and ISA with a Building Society. 

    My concern is that the value of the Vanguard funds might suddenly go down during the period when the transfer is about to take place so I'm wondering how best to address this concern?
    Sell the funds now so you lock in the price?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Murmansk
    Murmansk Posts: 868
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    I don't think that'll work will it as in order to keep it an ISA I have to get the B Soc to submit the transfer form I have completed? Or can I sell the funds and keep it the money in cash and it still be counted as an ISA which can then be transferred?
  • dunstonh
    dunstonh Posts: 115,647
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    Murmansk said:
    I don't think that'll work will it as in order to keep it an ISA I have to get the B Soc to submit the transfer form I have completed? Or can I sell the funds and keep it the money in cash and it still be counted as an ISA which can then be transferred?
    Selling to cash does not lose the ISA status.
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  • GeoffTF
    GeoffTF Posts: 1,336
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    dunstonh said:
    Murmansk said:
    I don't think that'll work will it as in order to keep it an ISA I have to get the B Soc to submit the transfer form I have completed? Or can I sell the funds and keep it the money in cash and it still be counted as an ISA which can then be transferred?
    Selling to cash does not lose the ISA status.
    ...unless you withdraw the cash from the ISA.
  • artyboy
    artyboy Posts: 803
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    GeoffTF said:
    dunstonh said:
    Murmansk said:
    I don't think that'll work will it as in order to keep it an ISA I have to get the B Soc to submit the transfer form I have completed? Or can I sell the funds and keep it the money in cash and it still be counted as an ISA which can then be transferred?
    Selling to cash does not lose the ISA status.
    ...unless you withdraw the cash from the ISA.
    I know we sometimes bemoan the country's state of financial literacy on this forum. But I would hope that most people realise that when you remove money from an ISA, it's pretty obvious that it will lose its ISA status!
  • artyboy said:
    GeoffTF said:
    dunstonh said:
    Murmansk said:
    I don't think that'll work will it as in order to keep it an ISA I have to get the B Soc to submit the transfer form I have completed? Or can I sell the funds and keep it the money in cash and it still be counted as an ISA which can then be transferred?
    Selling to cash does not lose the ISA status.
    ...unless you withdraw the cash from the ISA.
    I know we sometimes bemoan the country's state of financial literacy on this forum. But I would hope that most people realise that when you remove money from an ISA, it's pretty obvious that it will lose its ISA status!
    Given the experience level implied by the initial question I think that clarification was appropriate.

    So @Murmansk if you want certainty instruct Vanguard to sell your fund(s) but hold as cash in the ISA.   Then initiate the transfer.
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  • 25_Years_On
    25_Years_On Posts: 3,029
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    And when you initiate the transfer the form should allow you to stipulate that you want to transfer the cash held in the ISA. When I nearly did the form had options to either state what you wanted to sell or just to transfer the cash element only.
  • Murmansk
    Murmansk Posts: 868
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    Thanks all, that is very helpful and fully addresses my concern - although I'm fairly knowledgeable I'd not considered "uninvesting" the money and it retaining its ISA status, simply because the issue has not arisen before for me
  • Alternatively check whether your new provider accepts the Vanguard Life Strategy (if you decide to keep this fund) and transfer is done at value on day of transfer (just an accounting entry with no gain/loss). You will just have to keep a manual record of your fund original acquisition price if you want to know how well it performed over time as you new provider will show your fund value at day of transfer. HTH. 
  • jimjames
    jimjames Posts: 17,493
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    edited 13 November 2023 at 7:22PM
    Murmansk said:
    Thanks all, that is very helpful and fully addresses my concern - although I'm fairly knowledgeable I'd not considered "uninvesting" the money and it retaining its ISA status, simply because the issue has not arisen before for me
    Essentially it's no different to selling a holding and then using the funds to buy another fund so the S&S ISA has to have the ability to hold cash in it awaiting investment. Vanguard do also pay some interest so it won't be just losing out in that respect if you've sold your investments.
    ptrudgeon said:
    Alternatively check whether your new provider accepts the Vanguard Life Strategy (if you decide to keep this fund) and transfer is done at value on day of transfer (just an accounting entry with no gain/loss)
    The OP has said building society and moving money so I'm assuming it's going to a cash ISA so there isn't the option to hold investments. 
    Remember the saying: if it looks too good to be true it almost certainly is.
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