HL fee query when dealing funds

Chloe_G

Apologies for my ignorance but I find the HL help pages quite confusing ... I want to sell an Income Fund which is held in a GIA with HL and re-buy it within my HL ISA.   As this is a fund, do HL make any charge to buy and sell if I place the deals online?  Thanks.

ColdIron

If the 'fund' is an open ended fund (OEIC/Unit Trust) then there is no charge to buy or sell

masonic

And for reference if you wished to transfer exchange traded investments... https://www.hl.co.uk/shares/share-exchange

george4064

HL do not charge any fees for buying or selling funds. Source = https://www.hl.co.uk/help/income-and-fees/fees-explained/dealing-fees

What you are looking to do is called a "Bed & ISA", you'll have to sell the fund in your GIA, transfer the cash to your ISA once the sell trade has settled, and then re-purchase it (or another investment) within your ISA. For more information, see the second Frequently asked question here: https://www.hl.co.uk/shares/share-exchang

Note, you will be out of the market for a period of time and which introduces risk. You can be worse (or better) off if the market moves up (or down) whilst you're out for the c3/4 days your sell trade takes to settle.

Chloe_G

Can I buy the same fund in my ISA with i-Web before I sell my GIA holding? Are there any rules which prohibit holding the same funds on different platforms? Thanks.

masonic

Chloe_G said:

Can I buy the same fund in my ISA with i-Web before I sell my GIA holding? Are there any rules which prohibit holding the same funds on different platforms? Thanks.

There are no rules around holding the same funds on different platforms. However, when holding them unwrapped, all of your holdings would be part of the same investment pool used to calculate capital gains and losses.

ColdIron

Chloe_G said:

Can I buy the same fund in my ISA with i-Web before I sell my GIA holding?

Of course. However you would need to have sufficient cash available to you to do this. In addition you would be taking a gamble on the unit price increasing, or at least staying the same, until you sell. If the price decreased you would be selling lower than you just  bought

Many people who don't have spare cash would need to sell first, wait a few days until it settles, transfer and then buy. Same problem as above but in reverse. If the price increased you would pay more for the same number of units than you just sold

If (as it appears) you have the spare cash it would make sense to instruct the sale and purchase at the same time to remove the element of uncertainty of price movements

In less turbulent times the difference wouldn't be that great but now, with almost daily announcements on tariffs etc, I wouldn't chance calling it right and issue simultaneous instructions

Chloe_G

Thanks all.  I shall now start working out the capital gains issues!