Stock and Shares ISA 2 providers

tsmiller62 · 14 July 2018 at 11:23AM

Hi
I currently have a S&S ISA with Halifax share dealing. I have not subscribed this year yet but I want to buy Lindsell train and they dont do it. I want to be able to subscribe later in the year so I cant open up another S&S ISA this year with Cavendish Online to buy Lindsell.

However, if I were to invest in a Cash ISA which I am allowed to do then transferred that to Cavendish would that be allowed? Then I can have the remaining allowance with Halifax?
I know its a bit convoluted but I want to invest in Lindsell and I cant see any other way of doing it.

eskbanker · 14 July 2018 at 11:36AM

No, your suggested workaround wouldn't be valid - the general rule of ISA transfers is that they're ultimately regarded by HMRC as if the first account hadn't been there at all and that contributions were made to the second account, so whichever route you follow, you aren't allowed to have current year contributions in two separate S&S ISAs.

If you want to buy Lindsell via Cavendish, can't you use the rest of this year's allowance with them too, even if you transfer the non-Lindsell investments to Halifax next year?

Edit: the rule referred to is covered at https://www.gov.uk/guidance/transfer-an-isa-if-youre-an-isa-manager

Where current year subscriptions are transferred they must be transferred in whole (including any related income), and are treated for all ISA purposes as if they had been made to the receiving ISA manager.

masonic · 14 July 2018 at 12:58PM

What you suggest would be fine, but you must wait until after the end of this tax year before transferring a current year cash ISA to Cavendish. So you could open a cash ISA in March 2019, fund it, and transfer it to Cavendish after 5th April 2019, or if you have an old cash ISA lying around that doesn't contain money from 2018/19 you could transfer that now.

You don't mention which Lindsell Train fund you want to invest in. If the UK one, then have you checked whether Finsbury Growth & Income Investment Trust is available via Halifax - as this is almost exactly equivalent and has been slightly better performing.

tsmiller62 · 15 July 2018 at 1:12PM

Thank you both for your replies. The reason I dint want to use Cavendish for the reset of my allowance is they are too expensive! I don;t trade much so Halifax is a fixed fee rather than a percentage.
I have already moved all my cash isa to Halifax so that's not an option and its the Lindsell global which Halifax don't do.
Oh well it was worth a try! Any idea why so many platforms do not do this fund seeing as it is one of the top bought funds over several years ?

masonic · 15 July 2018 at 1:58PM

tsmiller62 wrote: »

Any idea why so many platforms do not do this fund seeing as it is one of the top bought funds over several years ?

The reason Halifax don't offer it is because the fund has a nominal initial charge (discounted to 0%), which the fund manager maintains so it can be charged in the future to control in-flows to the fund. Halifax sees this as a non-clean fund, which by their interpretation of the legislation banning commissions on fund sales, it cannot offer.

tsmiller62 · 15 July 2018 at 5:57PM

Thanks Masonic, I thought as much. Frustrating though!

ValiantSon · 16 July 2018 at 11:18PM

tsmiller62 wrote: »

Thank you both for your replies. The reason I dint want to use Cavendish for the reset of my allowance is they are too expensive! I don;t trade much so Halifax is a fixed fee rather than a percentage.
I have already moved all my cash isa to Halifax so that's not an option and its the Lindsell global which Halifax don't do.
Oh well it was worth a try! Any idea why so many platforms do not do this fund seeing as it is one of the top bought funds over several years ?

But if you want to buy the Lindsell Train fund, then surely it makes sense to do that through Cavendish, and then make your other ISA subscriptions with them for this year, and then transfer those out to Halifax next year? It might cost you a little more this year, but it can't be that much, surely, as Cavendish only charge 0.25%. As an example, if you had £10,000 invested with them for a year, it would only cost you £25. If you want to buy Lindsell Train, then this seems to be a sensible option, especially as Halifax will be charging you £12.50 per trade anyway (you say you don't trade much, so I assume you aren't using the £2 regular investing fee).

tsmiller62 · 17 July 2018 at 9:21AM

Hi Valiantson,
Yes you have a point. I would hope to do the whole £20K which would be £50 but in the scheme of things I suppose its not that much. I'd have to check if there is a transfer out fee as well as I know Halifax has that annoyingly!
Thank you for your wisdom!

ValiantSon · 17 July 2018 at 11:59AM

tsmiller62 wrote: »

Hi Valiantson,
Yes you have a point. I would hope to do the whole £20K which would be £50 but in the scheme of things I suppose its not that much. I'd have to check if there is a transfer out fee as well as I know Halifax has that annoyingly!
Thank you for your wisdom!

But a portion of that £20,000 will be in Lindsell Train, so you'll have to pay the 0.25% on that anyway. Only you know how much that will be, but subtract the Lindsell Train investment from £20,000 and the "extra" cost is 0.25% of whatever is left.

Cavendish don't charge exit fees.

tsmiller62 · 17 July 2018 at 1:04PM

Thanks for the advice Valiantson

Stock and Shares ISA 2 providers

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