Selling my own loan parts into my new IFISA

Does it matter if you buy your own loan parts? Sell yours at small discount and buy someone else's at a bigger discount (if possible) with your IFISA cash.

(If you put your own parts up at too large a discount you'll fail because I shall have bought them .)

Not when you view it through your IFISA A/C, although it should be easy to find using the amount, discount and effective rate.

Logically selling into your IFISA at the biggest discount would boost the amount in your IFISA.  You do risk someone "stealing" your loan part and I worry there will be some comeback if you are selling at a rate other than "market" rate.  So I might stick to selling at no more than a 1% discount or even at par for loans with 3+ months to run, just in case. 

Thanks, I'll have a try later (when Gorillas should be sleeping!).

I really would advise against this but what is to stop you abusing the SM to boost your ISA?   You sell a loan part to yourself into your ISA @ 3% discount, your ISA sells it back to you @ a 3% premium, rinse and repeat several times!

All purchases / sales within ISAs are supposed to be conducted on an "open market" basis and so priced at "open market" price. I think any cross-dealing between someone's standard and IFISA accounts at anything other than current "open market" price risks the account's tax-sheltered status being removed by HMRC. Whether they'd ever find out is another question, but personally I wouldn't take the risk.

Ps. I'm actually surprised if FS are even permitting someone to sell and re-buy their own parts, given the risk that HMRC treat the whole set-up as non-compliant if someone is caught playing those sort of games.

Does that 'open market' rule apply to sales within ISAs as well?  If not, then Liz's abuser could sell to their ISA at the same discount as highest one currently available on the SM and then sell from their ISA at the maximum premium allowed (4%).

I wonder what FS can do to stop such abuse.