Switching funds on ii. And does this eat into ISA allowance?

mothemoneysaver
mothemoneysaver Posts: 24
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edited 1 December 2023 at 10:52PM in Savings & investments
Hi,

In my stocks and share ISA account, I wanted to switch all that I have in my funds into to a single different fund. Ie. I wanted to sell my funds and buy a new fund. Is there a way to switch rather than selling and then having to wait a few days then buying, on interactive investor?

And sorry if this is a silly question, but if I do this, will it eat into my current ISA allowance of £20,000? Ie when you sell the funds, is that money still in the ISA wrapper before you buy new funds?

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  • EthicsGradient
    EthicsGradient Posts: 816
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    edited 1 December 2023 at 11:50PM
    This will not affect your £20k allowance - that's for new contributions.

    On ii, once a sale is confirmed (when you can see the order has been executed, and it will give you the details of how much money, and how many shares/units were involved - though this does not mean having to wait for the official contract note), and it's given you the date on which the proceeds will clear, you can buy something with those proceeds if the clearing date for the purchase is on that date or later.

    eg
    put in a sale request for an OEIC first thing in the morning
    it will probably only confirm the amounts after the market has closed that evening, and say the transaction will clear 4 working days later (eg sell on Monday, it clears on Friday)
    You can then purchase another OEIC right away (which won't be sent to the manager until the day after, anyway); to buy shares or ETFs with the money, which clear in 2, not 4, days, you'd have to wait until Wednesday, so that too will clear on Friday.

    Sell shares or ETFs, and it should execute in real time, and you can then use the proceeds to buy something at once.

    But no, there's no "switching".
  • Thanks, that's very helpful 🙂
  • LHW99
    LHW99 Posts: 4,070
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    You will pay for both sale and repurchase though, once you have used up any free trades
  • mothemoneysaver
    mothemoneysaver Posts: 24
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    edited 2 December 2023 at 12:25PM
    Thanks, yes good point. I think I have credit, though even if not, the fee is quite low for trades now (£3.99 for standard investor I believe).
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