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Post by moonraker on Jun 26, 2024 14:56:45 GMT
I emailed Hargreaves Lansdown about this and received a reply that was difficult to understand. Can I sell two or more stocks & shares ISAs (of relatively small value) from previous years and buy one new ISA with the proceeds - as well as using my 2024-25 £20k allowance to buy another one?
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Post by Ace on Jun 26, 2024 15:17:15 GMT
I emailed Hargreaves Lansdown about this and received a reply that was difficult to understand. Can I sell two or more stocks & shares ISAs (of relatively small value) from previous years and buy one new ISA with the proceeds - as well as using my 2024-25 £20k allowance to buy another one? Yes, so long as you use the ISA transfer process to merge the existing ISAs, I.e. to transfer one (or more) into the other. You will need to complete the transfer forms of the receiving ISA manager (one form for each ISA you want to transfer into it).
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warn
Member of DD Central
Curmudgeon
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Post by warn on Jun 26, 2024 15:44:50 GMT
I emailed Hargreaves Lansdown about this and received a reply that was difficult to understand. Can I sell two or more stocks & shares ISAs (of relatively small value) from previous years and buy one new ISA with the proceeds - as well as using my 2024-25 £20k allowance to buy another one? Yes, so long as you use the ISA transfer process to merge the existing ISAs, I.e. to transfer one (or more) into the other. You will need to complete the transfer forms of the receiving ISA manager (one form for each ISA you want to transfer into it). No, wait a minute. You can't "buy one new ISA" as well as using all your £20k allowance. You need to transfer the old ISAs (having previously perhaps cashed in the stocks within them) to a new manager as previous year funds. Kinda what Ace said, I guess -- just be careful not to take any cash out of the ISA universe into your bank account.
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Post by moonraker on Jun 26, 2024 16:12:52 GMT
Yes, so long as you use the ISA transfer process to merge the existing ISAs, I.e. to transfer one (or more) into the other. You will need to complete the transfer forms of the receiving ISA manager (one form for each ISA you want to transfer into it). No, wait a minute. You can't "buy one new ISA" as well as using all your £20k allowance. You need to transfer the old ISAs (having previously perhaps cashed in the stocks within them) to a new manager as previous year funds. Kinda what Ace said, I guess -- just be careful not to take any cash out of the ISA universe into your bank account. Thanks for your speedy replies, which explain the situation somewhat. Perhaps I should clarify that the ISAs were acquired over different years (a couple starting off as PEPs), and I had the impression that with HL holding them on my behalf it would carry out the sales without the need for me to fill in forms.
Confusingly, the HL email stated "You are unable to hold separate ISAs for different tax years with HL" and "you cannot have more than one Stocks & Shares ISA with us". (?)
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 26, 2024 19:42:25 GMT
No, wait a minute. You can't "buy one new ISA" as well as using all your £20k allowance. You need to transfer the old ISAs (having previously perhaps cashed in the stocks within them) to a new manager as previous year funds. Kinda what Ace said, I guess -- just be careful not to take any cash out of the ISA universe into your bank account. Thanks for your speedy replies, which explain the situation somewhat. Perhaps I should clarify that the ISAs were acquired over different years (a couple starting off as PEPs), and I had the impression that with HL holding them on my behalf it would carry out the sales without the need for me to fill in forms.
Confusingly, the HL email stated "You are unable to hold separate ISAs for different tax years with HL" and "you cannot have more than one Stocks & Shares ISA with us". (?)
They may be under an umbrella ISA where you hold different elements within one wrapper. Nationwide do this ... so you have a cash ISA but within that a HTB, a 3yr fixed, 2 yr fixed & instant access elements as separate accounts. On that basis the statement is correct ... you only have one ISA
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Post by mostlywrong on Jun 27, 2024 11:13:53 GMT
I emailed Hargreaves Lansdown about this and received a reply that was difficult to understand. Can I sell two or more stocks & shares ISAs (of relatively small value) from previous years and buy one new ISA with the proceeds - as well as using my 2024-25 £20k allowance to buy another one? Nobody has mentioned "in specie" transfers.
The keywords for Dr G are: in specie transfer meaning
The transfer does not involve you selling the assets; they are transferred to the new provider and remain in your ISA.
The trouble is that some providers do not, even now, appear to understand that system and it can take time. So, the quickest way (famous last words) is to sell your shares/funds, wait for the last dividend to arrive, and transfer the cash. The risk is that you are out of the market for that time and you pay two sets of dealing charges.
I understand that the easiest method is to liquidate your assets, tell your new provider the details of your old ISA/PEP provider and let them get on with it.
I have not (yet) transferred an ISA, and should probably do so in the future, so I would be interested in the outcome!
MW
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