ISA allowance - transfer rules

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LookingForTheSun
LookingForTheSun Posts: 25 Forumite
in ISAs & tax-free savings
Hi,
Under the current ISA rules, I can only take out one stocks and shares ISA using a maximum investment of £20K, but ideally I'd like to split this across 2 investment ISAs.

Can I gift £10k to my mum, who's a lower rate tax payer and hasn't subscribed to an ISA this year, and then ask her to open an ISA? The idea being that she would simply transfer the money to me several years later.
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  • dunstonh
    dunstonh Posts: 116,523 Forumite
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    but ideally I'd like to split this across 2 investment ISAs.

    That would be extremely unusual with todays products available. Most platforms are whole of market, for example. So, no need to get multiple ISAs.
    Can I gift £10k to my mum, who's a lower rate tax payer and hasn't subscribed to an ISA this year, and then ask her to open an ISA?
    You can give £10,000 and she is free to spend it how she wishes.
    If she is on means tested benefits, then she could lose those.

    Why do you think you need two ISA managers?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • LookingForTheSun
    LookingForTheSun Posts: 25 Forumite
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    Hi,
    Because I'd like to invest into 2 different products, e.g. a Vanguard passive tracker and an actively managed fund on a different platform - so far, I've only seen the option to use a single ISA. Presumably if I give my mum £10k, she then invests in an ISA and then pays me back in a couple of years, is the payment subject to capital gains tax?
  • Reed_Richards
    Reed_Richards Posts: 4,196 Forumite
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    It would be vastly simpler if you could find a platform that offers both the funds you want.

    if you give money to your mum then it becomes her money. If she dies then it forms part of her estate. If she gives it back to you and dies within the next seven years then it may still form part of her estate. However if your complicated scheme worked as intended, there would be no CGT to pay.
    Reed
  • Alexland
    Alexland Posts: 9,667 Forumite
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    It's a terrible idea. I don't understand what is so unusual about your fund choices that you could not invest with a DIY platform which offers both funds? Or alternatively this tax year with one ISA manager and next tax year with the other?

    Alex
  • dunstonh
    dunstonh Posts: 116,523 Forumite
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    Because I'd like to invest into 2 different products, e.g. a Vanguard passive tracker and an actively managed fund on a different platform - so far, I've only seen the option to use a single ISA.

    Why would you want to use a different platform?
    resumably if I give my mum £10k, she then invests in an ISA and then pays me back in a couple of years, is the payment subject to capital gains tax?

    No. However, it is her money once you have gifted it. it is part of her estate.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • LookingForTheSun
    LookingForTheSun Posts: 25 Forumite
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    Alex,
    Are you aware of any platforms that offer the ability to invest in a Vanguard ISA and an actively managed Lindsell train ISA at the same time? I haven't found anything.

    Instead of calling it a gift, what if it's called a loan?
  • Vortigern
    Vortigern Posts: 3,247 Forumite
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    You can't get a Vanguard ISA from anybody except Vanguard. I don't think Lindsell Train offers an ISA.

    What you can do is buy a Vanguard fund and an LT fund within just about any of the major platforms offering ISAs.

    So HL, Fidelity, Cavendish, CSD, etc. can meet your needs.
  • Alexland
    Alexland Posts: 9,667 Forumite
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    As above it will certainly be possible to invest in a choice of Vanguard and LT funds in a Hargreaves Lansdown ISA. For the other lower cost platforms check with the providers customer service before opening the accounts.

    Alex
  • badger09
    badger09 Posts: 11,247 Forumite
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    Vortigern wrote: »
    You can't get a Vanguard ISA from anybody except Vanguard. I don't think Lindsell Train offers an ISA.

    What you can do is buy a Vanguard fund and an LT fund within just about any of the major platforms offering ISAs.

    So HL, Fidelity, Cavendish, CSD, etc. can meet your needs.

    But not IWEB. Though you might not describe them as a major platform:cool:
  • dunstonh
    dunstonh Posts: 116,523 Forumite
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    Are you aware of any platforms that offer the ability to invest in a Vanguard ISA and an actively managed Lindsell train ISA at the same time? I haven't found anything.

    All of them. That is the point of a whole of market platform.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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