Transferring Non ISA Into ISA

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suts
suts Posts: 18 Forumite
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in Savings & investments
Hi

Is it possible to transfer a non ISA equity fund into an ISA fund?

If so how would i go about doing this.

Thanks in advance.
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  • sjp999
    sjp999 Posts: 146 Forumite
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    What platform are you on?

    See if they do the bed&isa thing if you're sticking with the same platform.
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    You will need to sell the fund, move the cash into your ISA and repurchase it. Some platforms will help you do this in one instruction or give you a break on fees (if any)
  • suts
    suts Posts: 18 Forumite
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    Thanks for the response it is is greatly appreciated.

    The fund is with fidelity and is called. MRS - ISHARES WORLD EQUITY INDEX FUND USD - CLASS 1.
    It is basically a savings fund my employer used to offer but no longer does.

    Trying to get my head around the maths does selling and then repurchasing have any major cost implications apart from fees

    Thanks
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    As ColdIron has said, the only thing you can transfer in to a ISA is cash (I'm ignoring SAYE schemes for the purpose of this discussion).

    Bed and ISA is a reduced cost way of selling an investment and re-buying within the ISA. Usually where there is a transaction charge, i.e. sell charge and buy charge, you would likely only be charged once. But, this is very dependant on the provider.
    Personal Responsibility - Sad but True :D

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  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    suts wrote: »
    Trying to get my head around the maths does selling and then repurchasing have any major cost implications apart from fees
    There will be a bid/offer spread so the purchase price will be a little higher than you get from sale, maybe a few tenths of a percent. You probably won't need to pay stamp duty as many ETFs are not domiciled in the UK. Plus of course fees, some platforms will charge for the purchase but waive the sale. Selling will crystallise any capital gains so be aware of any tax implications but you have an annual allowance and this is under your control. So a little cost but nothing major and generally outweighed by the move into an ISA
  • suts
    suts Posts: 18 Forumite
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    Thanks again for all of your replies. Great food for thought.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
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    Since you have to sell and repurchase you might consider a fund with lower fees.
    BlackRock (IShares) were very expensive, dropped their fees to compete with the likes of Vanguard, but only on some funds. Rather like the banks offer decent savings rates to those who check them and move to the best paying accounts, and very low rates to those who don't check them and stay in old accounts.
    Ishares are OK, but you've still got to watch 'em. ;)
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • suts
    suts Posts: 18 Forumite
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    Thanks for that Glen.

    Am i right in saying that timing is also a factor i need to account for when selling. Obviously we have just had a correction (Sounds like i know what i,m talking about :-) ) so now might not be the best time to begin the sell off?

    Also am i correct in saying i will only be able to move my annual ISA allowance per year?

    Thanks again
  • masonic
    masonic Posts: 23,278 Forumite
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    suts wrote: »
    Thanks for that Glen.

    Am i right in saying that timing is also a factor i need to account for when selling. Obviously we have just had a correction (Sounds like i know what i,m talking about :-) ) so now might not be the best time to begin the sell off?

    Also am i correct in saying i will only be able to move my annual ISA allowance per year?
    The best time would be when markets are not volatile. Over short periods of time markets are close to equally likely to move in one direction as the other, so the aim is to pick a time when they are unlikely to move by much.

    Since you need to sell, then move the proceeds into your ISA, you may need to wait for settlement before you can transfer - this may add to your time out of the market. Unless you happen to have £20k lying around. Then you could pre-fund your ISA and carry out the buy and sell instructions on the same day.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    suts wrote: »

    Am i right in saying that timing is also a factor i need to account for when selling. Obviously we have just had a correction (Sounds like i know what i,m talking about :-) ) so now might not be the best time to begin the sell off?
    Au Contraire, if you are going to buy the same or very similar fund inside the ISA then after a correction is a good time since you'll get more units into the ISA than when its higher priced, and it will minimise any potential capital gains from selling outside the ISA.
    suts wrote: »
    Also am i correct in saying i will only be able to move my annual ISA allowance per year?

    Yes that is correct otherwise it would mean there was some special ISA allowance for people who had more money knocking around than they could put in, in one year,and the annual allowance would be meaningless since it woudl be "the limit is £20k unless you've got more than £20k in which its however much you've got" LOL

    Of course if you have a partner you can use their allowance as well or more strictly speaking they can use theirs.
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