Transferring Vanguard S&S ISA to cash ISA

jbrassy

I currently have a Vanguard stocks and shares ISA which I'm planning to sell and move the funds into a cash ISA (basically because I'm planning to buy a house this year). I set up a cash ISA with Zopa, but it's not possible to transfer from Vanguard to Zopa.

I'm worried that if I withdraw from my Vanguard ISA as cash to my regular bank account, I'll lose the tax free status on what I've accumulated and won't be able to put it into another ISA. 

Therefore, my question is, are there any cash ISAs out there which let you transfer in from Vanguard? 

Thanks in advance for your help.

Mark_d

https://www.nationwide.co.uk/savings/help/transfer-stocks-and-shares-isa/

eskbanker

jbrassy said:

I currently have a Vanguard stocks and shares ISA which I'm planning to sell and move the funds into a cash ISA (basically because I'm planning to buy a house this year). I set up a cash ISA with Zopa, but it's not possible to transfer from Vanguard to Zopa.

I'm worried that if I withdraw from my Vanguard ISA as cash to my regular bank account, I'll lose the tax free status on what I've accumulated and won't be able to put it into another ISA. 

Therefore, my question is, are there any cash ISAs out there which let you transfer in from Vanguard? 

Thanks in advance for your help.

I believe that most cash ISAs will allow transfers in from S&S ISAs (which is presumably the restriction here rather than it being Vanguard-specific as such) but is the balance large enough to generate significant taxable interest between 6 April and the likely purchase date, i.e. if you're going to be spending the money soon does it need to be within an ISA until then?

jbrassy

Right now I'm unsure about when I'm going to buy the house, but it will probably be the second half of this year. 

I checked the Zopa website and they can only accept transfers from providers that use Pay UK to process their transfers: https://www.zopa.com/help/article/why-can-t-i-see-my-isa-provider-on-the-list

I can only assume Vanguard are one of the providers that don't use Pay UK. 

I have circa £40k in the Vanguard ISA, so I assume it will generate quite a bit of taxable interest which is why I'd prefer to transfer to another ISA if possible.

Gettingalife

I did this last year and opened a new cash isa with Virgin and did the transfer application on line in the Virgin account portal. All went fine, took slightly longer than anticipated, but Virgin chased it up directly with Vanguard.  I was able to track the progress for selling the vanguard funds and the transfer out via my Vanguard login page.  

jimjames

Rather than transferring could you switch to either a cash fund in the Vanguard ISA or to cash in there and get paid interest albeit at a lower rate than the best cash ISAs

DavidAC

Good luck. Did a small test transfer from Vanguard ISA that already had the sum in cash so no selling, to Paragon. After more than 15 working days I chased Paragon. Vanguard had not even responded to their request. Then I chased Vanguard. In the end it took a couple of months and numerous messages and phone calls. Vanguard just say they are very busy. I complained to Vanguard. It took them about 12 weeks to give me a response other than just acknowledging the complaint. They upheld the complaint and gave me a token sum.

Short answer, you can transfer to Paragon with a lot of time and hassle.